Hutchinson urges Cuba credit sales

Ban limits Arkansas’ products, he tells Congress leaders

Gov. Asa Hutchinson on Tuesday urged congressional leaders to allow Cuba to finance the purchase of American commodities.

Hutchinson, who led a three- day trade mission to Havana in September, has said previously that the current ban on credit sales to Cuba should be lifted as an early step toward improvements in relations between the two countries.

“The current cash- in- advance requirement limits a potential market of nearly $ 40 million for Arkansas products alone,” Hutchinson wrote in a letter to the majority and minority leaders of Congress.

Hutchinson urged passage of legislation by Sen. John Boozman and Rep. Rick Crawford, which would lift the credit restrictions on the sale of agricultural commodities to Cuba. Arkansas’ rice, pork and poultry producers are particularly eager to sell their products to Cuba.

Boozman, R- Ark., said in a telephone interview that he was “working hard” to repeal the credit ban but noted that it would be difficult because of the vehement opposition of lawmakers from Florida, which has a large Cuban-American population, and other conservatives who say the Cuban government should be punished for human- rights abuses. He said the U. S. trade embargo had failed to force political change in Cuba and that the exchange of goods and ideas was more likely to lead to greater freedoms for Cubans.

Boozman said the best chance for passing his legislation would be to attach it to another bill.

“We’d like to find a mustpass piece of legislation before the end of the year to tag

this on,” he said.

Boozman said the omnibus spending bill that will put into effect the recently approved budget deal was the most likely vehicle. Lawmakers face a Dec. 11 deadline to pass that bill.

Crawford, R- Ark., said separately that he couldn’t predict when the House might act on his bill but said the next step likely would be a mark- up and hearing before the House Agriculture Committee. He noted that the committee chairman, K. Michael Conaway, R- Texas, is a co- sponsor of the bill.

“It’s easy to see that Cuba has the potential to be a significant export market for U. S. agriculture, and I hope my colleagues see this legislation in the context of jobs and economic impact,” Crawford said in an emailed statement.

The United States and Cuba restored diplomatic relations this year after decades of Cold War hostility, and President Barack Obama has called on Congress to lift the trade embargo. Even with the embargo in place, U. S. companies export hundreds of millions of dollars’ worth of food, health care products and agricultural commodities to Cuba. But the credit ban makes it difficult for U. S. businesses to compete with producers from countries such as Vietnam, which allows Cuba to finance purchases for up to two years, and overall

U. S. trade with Cuba has declined. Some Cuba experts question whether Raul Castro’s government is committed to changing that trend.

In his letter, Hutchinson said he had voted to maintain the embargo while he was a member of Congress.

“However, I don’t believe that lifting the embargo is an all- or- nothing matter,” Hutchinson wrote. “Congress, under your leadership, can undertake efforts that would benefit Americans while maintaining political pressure on a regime that has violated human rights for more than 50 years.”

The governor’s letter went to House Speaker Paul Ryan, R- Wis.; House Minority Leader Nancy Pelosi, D- Calif.; Senate Majority Leader Mitch McConnell, R- Ky., and Senate Minority Leader Harry Reid, D- Nev.

Meanwhile, Dan Hendrix, president and chief executive officer of the Arkansas World Trade Center, which helped organize Hutchinson’s trip, said another trade mission was being planned for March or April. Hendrix said he was optimistic at least a few of the companies that sent representatives with Hutchinson would make deals with Cuba before then.

“I think we will see some momentum and positive activity between now and March or April of next year,” he said.

Hendrix said he could not identify the companies that might be close to striking deals.