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Congressional negotiators approve Cuba food trade |
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October 7, 2000
WASHINGTON, OCT 6 (UNB/AP) - Congressional negotiators have agreed to allow sales of food to Cuba in what would be a significant crack in the embargo imposed on Fidel Castro's government four decades ago. Such sales are likely to be small, at least initially because of tight financial restrictions imposed at the insistence of anti-Castro Republicans in the House. The measure, which was inserted into an agricultural spending bill, would bar both the federal government and U.S. banks from financing the sales and also would prevent any easing of restrictions on travel to the island. "We read this as a really positive first step," said Mary Kay Thatcher, a lobbyist for the American Farm Bureau Federation. "This is a heck of a lot better than what we have now." The measure agreed to Thursday also encourages sales of food and medicine to Iran, Libya, North Korea and Sudan by allowing U.S. subsidies for such exports. Additionally, the legislation would make it difficult for a president to impose future embargoes on food and medicine without congressional approval. Democrats, however, criticized the travel rules and said the restrictions on financing would severely limit any food sales. But Republican leaders resisted any changes in the trade measure, and it was approved by a House-Senate conference in a series of party-line votes. "What we are pretending to do is one thing. What we are accomplishing is another," said Rep. Maurice Hinchey, a Democrat. But Rep. George Nethercutt, a Washington Republican who was the lead farm-state negotiator on the provision in the House, said "it was an opening. It's a new day for sanctions policy in this country." The U.S.-Cuba Trade and Economic Council, a business-funded group, estimates the legislation will result in dlrs 28 million to dlrs 45 million in the first year. Because of Cuba's proximity to the United States, the Clinton administration has estimated that food sales to the island could reach dlrs 300 million within a year or two, if there were no restrictions on financing or subsidizing them. In 1999, the Clinton administration decided to allow sales of food and medicine to Iran, Libya and Sudan, but was barred by law from including Cuba. The Cuba measure and the appropriations bill will go the Senate and House for final approval. The Clinton administration has not taken a position on the trade provision. Direct sales of medicine to Cuba have been allowed since 1992 under restrictions similar to those that would be imposed on food shipments: Cuba must pay cash for the goods or else obtain credit from a third country. Cuba buys about dlrs 2 million worth of U.S. medicine and health products annually. Farm and business groups favored Senate-passed legislation that would permit financing from private sources. But anti-Castro members of the House, led by Cuban-American Rep. Lincoln Diaz-Balart, a Florida Republican, and House Republican Whip Tom DeLay of Texas, refused to budge. The Cuban-American community is an important voting bloc in Florida, a toss-up state in the presidential race. The deal is essentially the same as an agreement that Diaz-Balart reached with some farm-state House members in June except that it clarifies that financing from non-U.S. sources would be permitted.
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