CUBANET ... CUBANEWS

January 25 , 2002



U.S. business reps travel to Cuba

By Anita Snow, Associated Press Writer

HAVANA, 24 (AP) - Encouraged by signs Cuba may be ready to buy more U.S. products, the head of a leading American agricultural firm said Thursday his company is willing to sell the communist country as much food as it wants.

Illinois Gov. George Ryan arrived here Thursday with drug company representatives keen to do business with Cuba.

"The embargo robs us in Illinois and in the United States of a vast consumer market of 11 million people,'' Ryan said, referring to the four-decade old U.S. trade sanctions against Cuba. "It's time to end the embargo and welcome Cuba into the international marketplace.''

The high-profile visits by Minnesota agribusiness giant Cargill, Inc., and the Illinois delegation come as Cuba woos Americans who oppose long-standing restrictions on U.S. trade with the Caribbean island.

"It is our sincere hope that the success of this initial commercial transaction will lead to a further improvement in U.S.-Cuban relations,'' Cargill chairman and CEO Warren R. Staley told a news conference Thursday in which he announced the arrival of 25,000 metric tons of American corn his company sold directly to Cuba.

While hopes for a trade thaw between the two countries are high among Cuban officials and American firms, one expert warned against excessive optimism. Most U.S.-Cuba trade is barred by a 40-year-old embargo, and Cuba bought American food for the first time in nearly four decades only after a November hurricane.

"The relationship between the United States and Cuba has never been reflected in one moment, but rather a series of moments, some more important than others'' said John Kavulich, president of the New York-based U.S.-Cuba Trade and Economic Council.

Nevertheless, people on all sides of the trade debate took notice this week when Pedro Alvarez, president of Cuba's food import enterprise, said his government could buy more American agricultural products if it receives encouraging signs from Washington.

It was the first time that a Cuban official had declared the communist government would consider buying more American food. Appearing at Cargill's news conference, Alvarez repeated his assertion Thursday.

Cuban leader Fidel Castro earlier had said that $35 million in food contracts signed late last year with U.S. companies were a one-time deal. Deliveries are being made this month and next month.

Before Hurricane Michelle, Havana had refused to take advantage of a U.S. law passed in 2000 allowing the direct food sales because it prohibits American government or private financing.

Now that the first sales have been made, American agribusiness hopes more will follow.

"Cargill would hope to sell everything that Cuba would buy if the financing restrictions are lifted,'' said Staley. And Alvarez said lifting the financing restrictions is among gestures that could persuade Havana to buy more.

"We will respond from our side to a positive gesture,'' Alvarez said. "And Cargill would be one of the first companies we would contact for possible new contracts.''

While the focus on U.S. trade with Cuba now centers on food, drug companies also want to do business, said Mark Rasenick, director of Biomedical Neuroscience Training at the University of Illinois' College of Medicine.

The embargo has never barred sales of U.S. medicine and medical supplies, but "a lot of American companies just give up because it is so hard to get the licenses,'' Rasenick said by telephone.

Ryan arrived Thursday afternoon, accompanied by representatives of the Illinois firms Ferris Manufacturing, Medline, DMS Pharmaceutical, JLR International and Century Healthcare.

After Hurricane Michelle swept across Cuba in early November, Havana politely rejected the U.S. government's offer of humanitarian help and said it preferred to make direct purchases of U.S. food and medicine to replenish its reserves. While Cuba has signed contracts for food, no contracts have been made for medicine and medical supplies.

U.S. Department of the Treasury - U. S. Embargo

The U.S. Embargo and Health Care in Cuba: Myth versus reality /

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