A significant breakthrough in trade with Cuba occurred just before Thanksgiving in Havana.  The first trade deals were signed between U.S. companies and the Cuban government in more than four decades to sell agricultural products to the Caribbean Island on an emergency basis after Hurricane Michelle devastated the island.  This is a significant development, which could have positive ramifications for South Carolina farmers, if our State leaders seize the opportunity. 

            On November 4^th, Hurricane Michelle slammed into Cuba killing five people and destroying thousands of homes.  Crops were also critically damaged; leaving the island with a depleted food supply and little hope for agricultural exports this season.  The United States offered humanitarian aid through non-profit organizations, which the Cuban government did not accept in light of the “tense relations between our countries.”  Instead, Cuba counter-offered that they would purchase the food and medicines they needed in cash.  They are estimated to need products totaling $30 million.

            As a result, a number of American companies including Archer Daniels Midland, Riceland Foods Inc., and Cargill, Inc. have already signed contracts to sell wheat, corn, soy, and other foods.  Although this is a one-time purchase, companies involved are hopeful that these temporary trade agreements will lead to long-term deals.

            I helped lead efforts in Congress last year aimed at opening limited trade with Cuba, but opponents successfully loaded the measure with bureaucratic and financing restrictions that make it nearly impossible for American interests to export to the Caribbean island.  These restrictions have been eased to accommodate the current emergency needs in Cuba, and now provide us with a test of how limited exports of food and medicines could be handled in the future.  If this experiment proves successful, there could be greater support for easing the restrictions on these products permanently. 

            South Carolina should take this time to prepare for what I hope will finally be the opening of a new market for our State’s farmers and pharmaceutical companies.  This State is ideally situated for trading with Cuba, because products produced here are within a day’s travel to the island that is just 90 miles off the coast of Florida.  However, it is obvious that we are behind in this effort.  The companies who have already inked temporary deals with Cuba, many of whose representatives I saw when I was there, will be in the catbird seat if Congress eliminates the unwieldy regulations on food and medical exports. 

            Having visited Cuba last year, I know firsthand the need there of produce such as peanuts, soybeans, watermelon or tomatoes.  These are ideal crops for South Carolina farmers.  And by opening the Cuban market, some tobacco growers, who are facing hard times, could switch crops in order to meet the demand of this new market. 

            I also toured a children’s hospital while in Cuba and saw the desperate need for the latest medical advances that we enjoy here in the United States.  The Roche Carolina facility in the Pee Dee, a subsidiary of Hoffman-La Roche one of the bigger pharmaceutical companies in the world, would be ideally situated to help fill the medical needs. 

The silver lining in Hurricane Michelle’s devastation is the newfound opportunity to test a limited trade agreement with Cuba.  If successful, this will likely enhance support of a more permanent arrangement.  Now is the time for South Carolina to prepare to play a role in this new market, because it is no longer a question of if American interests will be able to freely export to Cuba, but when. 

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