Cuban official: island spent nearly $110M on American farm products so far this year

Cuba has spent US$108 million (euro81 million) so far this year on American food and agricultural products and associated logistical costs, but would have spent far more if not for Washington's 45-year-old embargo, a top official said Tuesday.

Pedro Alvarez, director of the island's food import company, Alimport, made the announcement as he signed agreements to purchase an additional US$15.75 million (euro11.8 million ) worth of wheat and pork from Nebraska producers. He said Cuba spent US$560 million (euro420 million) on U.S. food and agricultural products and associated shipping and other costs last year, and more than US$2.2 billion (euro1.6 billion) since December 2001.

The embargo prohibits most American travel and trade to Cuba, but a law passed by Congress in 2000 permitted Fidel Castro's government to directly purchase U.S. farm goods on a cash-only basis. Havana at first rejected the measure, but began taking advantage of it in late 2001.

Alvarez said that if the embargo were lifted, U.S.-Cuba trade in goods and services _ including tourism _ could balloon to US$21 billion (euro15.7 billion) in the first five years.

"Alimport keeps the door open to American exporters, but sadly their own laws prohibit doing business with Cuba," he said.

Even though America is the island's leading source of food and agricultural products, Alvarez said Cuba can never be sure Washington will allow its country's exporters to make good on contracts they sign with Havana. He said U.S. powdered milk and other perishables had spoiled on ships in Cuban ports because American authorities held up cash payments sent from the island.

"Even though American companies are efficient in providing their products, there continue to be too many uncertainties for us," he said. "We never know when a shipment is going to be held up and that can't be."

Despite his complaints about U.S.-Cuba policy, Alvarez was careful not to say Cuba would consider severing all trade relations with the U.S.

"I haven't said that. I said this uncertainty has made increased growth in sales more difficult and that this uncertainty has placed U.S. producers at a complete disadvantage with relation to Cuba," he said.

Nebraska Gov. Dave Heineman, in Havana to help negotiate Tuesday's agreements, was making his third visit to Cuba since taking office a bit more than two years ago.

He said that "in spite of the challenges between our two countries, and how we export products down here, we intend to increase the number of Nebraska products sold."

During a ceremony to sign the contracts, Heineman sat in a chair behind a small American flag, while officials placed a miniature Cuban flag in front of Alvarez.

U.S. medical supplies have been legally exported to Cuba since 1992, and Heineman said that state officials began initial discussions to allow Nebraska companies to tap into that market.

"We look forward to additional agreements in the future," Heineman said. "I expect to visit many more times."

In 2005, Heineman signed deals to export US$30 million (euro26 million) worth of agricultural products to Cuba, and Nebraska officials agreed to a similar deal a year ago. Past contracts have sent Nebraska beans, corn, wheat, turkey, pork, beef and soy products to the island.

Alvarez's figures on Cuba-U.S. food and agricultural trade are substantially higher than other estimates, including those compiled by John Kavulich, senior policy adviser at the U.S.-Cuba Trade and Economic Council of New York.

Kavulich, who disagrees with Cuba's inclusion of shipping and other costs in its payment calculations, said earlier this month that the communist-run island bought US$340 million (euro255 million) in American farm products last year _ down about 3 percent from 2005.

Excluding shipping and other logistical costs, Cuba has spent more than US$1.5 billion (euro1.1 billion) for food and agricultural products since December 2001, according to Kavulich.