Bill Summary
This bill, known as the "Cuba Agricultural Exports Act," seeks to modify the current prohibition on United States assistance and financing for certain exports to Cuba under the Trade Sanctions Reform and Export Enhancement Act of 2000. The purpose of this modification is to provide more opportunities for United States farmers and ranchers to benefit from trade with Cuba. The bill also acknowledges the close proximity of the United States to Cuba and the potential for the US to be a significant trading partner in agricultural commodities. It also highlights the fact that Cuba heavily relies on food imports and the potential for the US to increase its exports to Cuba. The bill notes that the former Obama administration had changed the definition of "cash in advance" to facilitate more efficient trade with Cuba, and that the current Trump administration has retained this definition and stated that regulatory changes shall not prohibit certain transactions that support the sale of agricultural commodities to Cuba. However, the bill also recognizes that there are still restrictions in place that prevent US agricultural exporters from extending credit to Cuban buyers, leading to a decline in US agricultural exports to Cuba and putting US exporters at a disadvantage compared to other countries. The bill aims to modify this prohibition and allow for certain exceptions, such as exports under certain agricultural trade acts and federal commodity promotion programs, as long as the recipient of US assistance is not controlled by the Cuban government. The bill also allows for persons subject to US jurisdiction to make investments in the development of agricultural businesses in Cuba, as long as certain conditions are met.
Possible Impacts
1. Farmers and ranchers in the United States may benefit from the trade opportunities with Cuba provided by this legislation, allowing them to expand their market and potentially increase their profits.
2. Cuban citizens may have access to a wider variety of food products due to the increased agricultural exports from the United States.
3. The restriction on extending credit to Cuban buyers may make it difficult for United States exporters to sell their agricultural products to Cuba, limiting their potential business opportunities.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1898 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 1898
To modify the prohibition on United States assistance and financing for
certain exports to Cuba under the Trade Sanctions Reform and Export
Enhancement Act of 2000, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 27, 2019
Mr. Crawford (for himself and Mrs. Bustos) introduced the following
bill; which was referred to the Committee on Foreign Affairs, and in
addition to the Committees on Financial Services, and Agriculture, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To modify the prohibition on United States assistance and financing for
certain exports to Cuba under the Trade Sanctions Reform and Export
Enhancement Act of 2000, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Cuba Agricultural Exports Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The United States has a long history of providing safe
and reliable exports. Close proximity to Cuba lends itself to
low transportation costs for United States goods exported to
Cuba. The United States is geographically poised to be a
significant trading partner in agricultural commodities.
(2) Cuba imports approximately 80 percent of its food, with
global agricultural exports to Cuba doubling over the past
decade to $1,900,000,000.
(3) In 2015, the Obama administration reversed a prior rule
of the Department of the Treasury that defined ``cash in
advance'' to require that cash payments must be made before
United States products leave United States ports. The new rule
defines ``cash in advance'' as ``cash before transfer of
title'', facilitating more efficient trade with Cuba.
(4) The Trump administration has retained this definition
and stated in its National Security Presidential Memorandum on
Cuba that forthcoming regulatory changes shall not prohibit
transactions that support the sale of agricultural commodities
consistent with the Trade Sanctions Reform and Export
Enhancement Act of 2000.
(5) United States agricultural exporters are still not
permitted to extend credit to Cuban buyers, including ALIMPORT,
a State-owned and State-controlled entity that makes all
decisions regarding United States exports to the Cuban market.
As a result, United States agricultural exports to Cuba have
declined and United States exporters face a key disadvantage
relative to other exporting countries. Notably, rice exports
fell from a value of $64,000,000 in 2004 to essentially $0 in
2009 and subsequent years.
(6) Despite these restrictions, the United States has been
the largest exporter of agricultural goods to Cuba over the
last decade. However, the United States slipped to being the
second leading exporter of agricultural goods to Cuba in 2013
and the third leading exporter of agricultural goods to Cuba in
2014. For many of Cuba's top agricultural imports, such as
wheat, rice, and dairy, there have been no transactions with
the United States in well over a decade.
(7) While trade opportunities exist, Cuba remains an
undemocratic autocracy that oppresses its own people and
restricts freedom.
(8) With these cautionary factors in mind, it is important
to provide United States farmers and ranchers additional
opportunities to benefit from trade with Cuba.
SEC. 3. MODIFICATION OF PROHIBITION ON UNITED STATES ASSISTANCE AND
FINANCING FOR CERTAIN EXPORTS TO CUBA UNDER THE TRADE
SANCTIONS REFORM AND EXPORT ENHANCEMENT ACT OF 2000.
(a) In General.--Section 908 of the Trade Sanctions Reform and
Export Enhancement Act of 2000 (22 U.S.C. 7207) is amended as follows:
(1) In the section heading, by striking ``and financing''.
(2) In subsection (a), by adding at the end the following:
``(4) Exception for certain programs.--
``(A) In general.--Subject to subparagraph (B),
paragraph (1) shall not apply with respect to--
``(i) exports to Cuba under section 202 of
the Agricultural Trade Act of 1978 (7 U.S.C.
5622), section 203 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5623), or section 702 of
the Agricultural Trade Act of 1978 (7 U.S.C.
5722); or
``(ii) any obligation or expenditure of
funds to promote trade with Cuba by Federal
commodity promotion programs established in
accordance with a commodity promotion law, as
defined by section 501(a) of the Federal
Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7401(a)).
``(B) Restriction on certain recipients.--The
exceptions under subparagraph (A) shall not apply if
the recipient of the United States assistance would be
an entity controlled by the Government of Cuba,
including the Revolutionary Armed Forces of Cuba, the
Ministry of the Interior of Cuba, and any subdivision
of either such governmental entity.''.
(3) In subsection (b), to read as follows:
``(b) Financing of Sales of Agricultural Commodities to Cuba.--
``(1) In general.--A person subject to the jurisdiction of
the United States may provide payment or financing for sales of
agricultural commodities to Cuba or to an individual or entity
in Cuba.
``(2) Definitions.--In this section:
``(A) Agricultural commodity.--The term
`agricultural commodity' has the meaning given that
term in section 102 of the Agricultural Trade Act of
1978 (7 U.S.C. 5602).
``(B) Financing.--The term `financing' includes any
loan or extension of credit.''.
(b) Conforming Amendment.--Subsection (f)(4) of section 203 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5623), as amended by section
3201 of title III of the Agriculture Improvement Act of 2018 (Public
Law 115-334), is further amended by striking ``Notwithstanding'' and
all that follows through ``funds made available'' and inserting ``Funds
made available''.
SEC. 4. AUTHORITY OF PERSONS SUBJECT TO THE JURISDICTION OF THE UNITED
STATES TO INVEST WITH RESPECT TO CERTAIN AGRICULTURAL
BUSINESS IN CUBA.
(a) In General.--Notwithstanding any other provision of law, a
person subject to the jurisdiction of the United States may make an
investment with respect to the development of an agricultural business
in Cuba if the Secretary of State and Secretary of Agriculture jointly
determine that--
(1) the agricultural business is not controlled by the
Government of Cuba, including the Revolutionary Armed Forces of
Cuba, the Ministry of the Interior of Cuba, or any subdivision
of either such governmental entity; and
(2) the agricultural business does not traffic in the
property of persons subject to the jurisdiction of the United
States that was confiscated by the Cuban Government on or after
January 1, 1959.
(b) Definitions.--In this section:
(1) Agricultural business.--The term ``agricultural
business'' means any entity involved in the production,
manufacture, or distribution of agricultural products (as such
term is defined in section 207 of the Agricultural Marketing
Act of 1946 (7 U.S.C. 1626)).
(2) Confiscated, cuban government, property, and traffic.--
The terms ``confiscated'', ``Cuban Government'', ``property'',
and ``traffic'' have the meanings given such terms in section 4
of the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act
of 1996 (22 U.S.C. 6023).
(3) Investment.--The term ``investment'', with respect to
the development of an agricultural business in Cuba, means--
(A) entry into a contract involving the purchase of
a share of ownership, including an equity interest, in
the development of the agricultural business;
(B) entry into a contract providing for
participation in royalties, earnings, or profits in the
development of the agricultural business; or
(C) entry into, or performance or financing of, a
contract to sell goods, services, or technology
relating to the agricultural business.
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