Emerson: Ease trade restrictions

~ Economic conditions, Castro's health were topics of discussion for visiting U.S. lawmakers.

American companies are missing out in Cuba, according to U.S. Rep. Jo Ann Emerson, R-Cape Girardeau, just returned from her fourth visit to the island. She thinks the United States could benefit greatly by further opening up trade barriers.

Cuba, she said, will import $543 million worth of American goods next year. But that figure could be "5 or 10 times higher" if the United States would ease restrictions, she said.

"It could go much higher because it is right here, and it only takes three days max to transport goods there." not trading with Cuba "just seems ridiculous," she said.

Emerson was part of a 10-person bipartisan delegation, the largest congressional group to visit the isle since the 1950s. They returned from the three-day trip Sunday night.

Emerson and the others did not meet with acting president Raul Castro (brother of longtime ruler Fidel) but did meet with the nation's foreign minister and parliament speaker.

Trade, she said, is still too restricted, and Missouri farmers are missing the boat.

"We have more in common with that country than a lot of others where we do business," said Emerson.

In 2001 an act of Congress opened Cuba to trade from the United States for the first time since President Kennedy expanded the embargo in 1962. During the three years following the opening, Cuba rose to become the 25th largest agricultural export market for the United States.

The success, though, was short-lived. In 2004, the Bush administration, working through the Treasury Department, made trade with Cuba more difficult by requiring advance payment for exports and routing payment through third countries.

The change requires Cuba to go through two currency exchanges just to pay for its goods. Consequently, fresh fruit exports dropped by 79 percent, soybean meal by 68 percent, rice by 43 percent and dairy products by 43 percent in the year that followed.

As of Nov. 1, Cuba had fallen to be the 31st largest agricultural export market for U.S. goods.

Emerson said the restrictions have impacts on the U.S. economy ranging far and wide.

"They have 52 blocks in the Gulf of Mexico where they have deep water options on oil. And our American companies are unable -- and very upset -- that they're not allowed to bid on these blocks of oil. So because of our crazy policy, American companies are prevented from doing any business," she said.

Emerson said the foreign companies doing the deep water drilling largely use American equipment. However, American companies cannot even fix broken parts on this equipment without being "called terrorists" by the anti-Castro lobby.

Some experts, though, are skeptical of promises made by the law opening up Cuba. Pat Westoff, an economist with the Food and Agriculture Policy Research Institute in Columbia, Mo., said the advantage of an open Cuban market would likely be minor in the short term. "I wouldn't see them having a major impact on most U.S. commodities," said Westoff.

The one exception, though, might be rice.

Trade in rice "would be advantageous both for Cubans and for us. It's cheaper than exporting rice to the other side of the world," he said.

Missouri ranks fourth nationwide in rice production. Riceland foods of Stuttgart, Ark., was one of the first companies to ship goods to Cuba after the law changed in 2001.

Emerson's trip came at an important time for Cuba. Questions abound since President Fidel Castro, 80, underwent surgery for intestinal bleeding in late July. He has not been seen publicly since July 26 and temporarily ceded power to brother Raul, 75, in August.

Many U.S. officials believe Castro has a type of inoperable cancer. But Cuban officials told Emerson and the U.S. delegation that Castro's health situation is not dire and that the leader will return to power.

Foreign Minister Felipe Perez Roque "was adamant in his statement that no one is taking power, Fidel is not terminal and does not have cancer. He really wanted us to know that, and he went on and on about it," Emerson said. Emerson said the delegation tried to push for democratic reforms wherever possible. They were careful, though, not to step on toes. "You cannot impose your values and will on another sovereign country, I really believe that, so you have to be delicate," she said.

She said the issues the group discussed included freeing political prisoners and allowing more Cubans to obtain exit visas.

tgreaney@semissourian.com

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