Cuban market subject of forum

Gathering notes state’s prospects

PETIT JEAN MOUNTAIN -- A future with normal diplomatic and trade relations between the United States and Cuba has the potential to open up new opportunities and markets for both nations' agriculture industries, American and Cuban officials said Tuesday.

To achieve such a future, there needs to be open dialogue that seeks to build relationships between the two nations, they said during a gathering at the Winthrop Rockefeller Institute on Petit Jean Mountain, near Morrilton.

"The more we do that, the better things become between our two countries," said Randy Veach, president of the Arkansas Farm Bureau Federation.

Officials gathered to discuss how improved relationships between the two nations could affect the agriculture industry in the U.S., including how the prospect of expanded trade with Cuba could open the market for Arkansas goods.

The discussions came as President Barack Obama spent his final day in Havana during a historic trip to Cuba.

The United States and Cuba have been estranged since 1961, when the U.S. ended diplomatic relations with Cuba after the country's revolution fueled fears of communism spreading to the West.

So when Obama stepped off Air Force One on Sunday, it was the first time a sitting U.S. president touched Cuban soil in 88 years. The visit comes months after the two countries announced they would seek to restore normal relations between them.

Obama's trip to Cuba is a step toward improving trade relations between the United States and Cuba, Rodney Ferguson, president and chief executive officer of Winrock International, said in an interview.

"The president showed extraordinary leadership in agreeing to visiting Cuba," he said, adding that the agriculture agreement struck between the two countries this week is another step in better relations.

U.S. Agriculture Secretary Tom Vilsack announced this week that the two nations have signed an agreement to share ideas and research pertaining to food availability, agriculture productivity and natural resource management.

In discussing the opportunities available to the agriculture industry in Cuba, Ferguson noted Arkansas' production of rice, soybeans and chickens.

"There's a lot of opportunity for trade between Arkansas and Cuba," he said.

But while Obama's trip highlights the work being done to re-establish diplomatic relations, the U.S. trade embargo on Cuba is still in place because only Congress can lift it. The export of U.S. agricultural commodities is permitted, but there are limits.

With the embargo in place, it makes it difficult to physically trade with Cuba, and for "Cuba to make [trade] commitments," said Terry Harris, vice president of Riceland Foods Inc.

Riceland would like to sell rice to Cuba, which has shown interest in the company's product in the past, but the lack of progress on improving relations has made it difficult to do so, Harris said.

"Because of the lack of movement in the United States, the Cubans cooled," Harris said. "Until there is a real end of the embargo, then, I think, the opportunities there are going to be very limited."

As important as it is to have better ties so the U.S. agriculture industry can increase its market share in Cuba, it is also crucial that the economy and quality of life in Cuba are enhanced so that people can afford to purchase rice, chicken and other commodities, Veach said.

"Once we get over that hurdle, then we have a great opportunity," he said. "We need to do all we can to help better their lifestyle."

Veach said that in an effort to further dialogue between Cuba and the U.S., the Arkansas Farm Bureau wants to have a Cuban delegation visit Arkansas to learn more about how the state's agriculture industry operates.

Officials at the Winthrop Rockefeller Institute said Cuba's agriculture industry needs more technology, resources and expertise.

"Our level of production is so low we need to make a lot of transformations and improvements," said Ruben Ramos Arrieta, the minister counselor at the Cuban Embassy's Economic and Trade Office. "The agriculture sector is a priority for Cuba."

He said that even if Cuba is able to boost its agriculture industry, the country still will depend on rice imports because the nation consumes more than it can produce.

"It will mean we will need a really strong relationship," he said.

Business on 03/23/2016

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