Thursday, February 25, 2010

New bill to boost exports, end travel restrictions

House Agriculture Committee Chairman Collin Peterson has introduced a bill that, he says, “increases the ability of our farmers to sell their products to Cuba just like they do with our other trading partners.”

It contains three provisions: an end to travel restrictions; a definition of the “cash in advance” requirement so that Cuba’s payment is required before Cuba takes possession of goods, rather than before they leave a U.S. port; and permission for Cuba to wire payments for U.S. agricultural exports directly to U.S. banks rather than through third countries, as is current practice.

I think it’s a pretty safe bet that these changes would result in increased American farm exports to Cuba. The reasons are discussed here – but scratch the part about private credit, because this bill does not go that far.

Here is the text of the bill, Chairman Peterson’s statement, and a Minneapolis Star-Tribune report on it.

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