Gov. Asa Hutchinson said Friday that there is "significant momentum" for increasing trade with Cuba, but Congress must take the next step.
"Congress has to sense the changing mood of the American public," Hutchinson said. "I believe they are, and even though we are in a political season, I expect there to be growing momentum and a greater willingness in Congress to readdress this issue."
The United States and Cuba recently restored diplomatic relations after decades of Cold War hostility, and President Barack Obama has called on Congress to lift the trade embargo and travel restrictions that make doing business in the island nation difficult. However, the White House has said Congress is unlikely to act in the near future because of opposition from Republican lawmakers, who contend that Cuban President Raul Castro's government is a brutal dictatorship that should be isolated.
Even with the trade embargo in place, U.S. companies export hundreds of millions of dollars' worth of food, health care products and agricultural commodities to Cuba. However, current federal law prohibits financing exports to Cuba and requires cash payments upfront. That makes it difficult for American businesses to compete with producers from countries like Vietnam and Brazil, which allow Cuba to finance purchases for up to two years.
Hutchinson, who led an Arkansas trade delegation to Havana this week, told reporters at the Capitol that U.S. sales to Cuba fell off sharply about two years ago because Cuban officials decided to stick with traditional trading partners who can offer credit.
"Congress needs to equalize the field of operations for our businesses by allowing them to negotiate cash, credit, whatever they feel comfortable with and the level of risk they wish to take," he said. "Right now, we can't even negotiate a credit sale, and that's not customary in the market."
Sen. John Boozman, R-Ark., has introduced a bill to allow American companies to negotiate credit terms with Cuba, but it is has not reached the Senate floor. Separate pending legislation would allow Americans to travel more freely to Cuba. Hutchinson has said tourism could be a quick source of the cash that Cuba needs to strengthen its economy.
"The key question is whether the Republican leadership [in Congress] will make a decision to allow votes on some of these bills," Hutchinson said.
Asked if any deals were signed during his trade mission to Cuba, the governor said the Arkansas World Trade Center signed a memorandum with the Cuban Chamber of Commerce "reflecting a desire for further exchanges." He also said Donald Bobbitt, president of the University of Arkansas System, met with officials at several universities to discuss possible exchanges of students and faculty members.
He said the delegation invited officials from the Cuban ministries of agriculture and trade to come to Arkansas so they could see the quality of Arkansas' agricultural products but added that any visit would only be possible if the State Department agreed to give visas to the Cubans.
J.R. Davis, the governor's spokesman, said separately that travel expenses for Hutchinson, his chief of staff and his director of state and federal relations were paid by the Arkansas Republican Party.
Business on 10/03/2015