Cuban Rice Trade Good for U.S., No Restrictions Necessary, USA Rice Federation Says

WASHINGTON, December 14, 2004 — FOR IMMEDIATE RELEASE

The Bush administration must not increase restrictions on trade with Cuba, USA Rice Federation board members said during meetings last week at the 2004 USA Rice Outlook Conference in New Orleans. Any restriction on existing trade would be two steps backward, USA Rice officials said, emphasizing their commitment to providing high-quality U.S. rice to Cuban consumers and promoting the resumption of normal trade relations with the nearby U.S. neighbor.

Opening the Cuban market for U.S. rice has been a boon to the U.S. rice industry.

“This week marks the third anniversary of the resumption of U.S. agricultural trade with Cuba,” USA Rice Federation Chairman Lee Adams said. “U.S. rice exports are on target to exceed 60,000 metric tons in 2004, and Cuba is now our fifth largest export market,” Adams said.

“It’s unfortunate that just as the Cuba market is picking up steam for U.S. agriculture, some Bush administration officials are seeking to reinterpret the regulations under which U.S. exporters make sales to Cuba,” Adams said. “We risk losing farm sales to Cuba, and that counters the intent of Congress when it passed the Trade Sanctions Reform Act. Our exporters have worked diligently to be reliable commercial partners with Cuba and to comply with U.S. law and regulation.”

Cuba has purchased almost 320,000 tons of U.S. rice, with a value of $81 million, since U.S. exporters were granted permission to trade with that country in 2001. U.S. rice will be the single largest agricultural commodity imported by Cuba from the United States in 2004.

“The USA Rice Federation actively supports the resumption of normal commercial relations between the United States and Cuba,” said Stuart Proctor, USA Rice Federation president and CEO. “Expanding trade relations between the United States and Cuba remains a key goal of all USA Rice Federation members. We are also a leader in current efforts to preserve the Trade Sanctions Reform and Act and are at the forefront of market development in Cuba. We are proud of this position, and we will continue to lead,” Proctor said.

In late October 2001, Cuban consumers had an opportunity to experience their first taste of U.S.-grown rice in four decades when USA Rice exhibited at the 19th International Trade Fair in Havana. The presence of USA Rice was the first by a U.S. entity at a Cuban trade fair in almost 40 years. Visitors to the USA Rice booth included Cuban consumers as well as Cuban officials.

USA Rice has also led three official delegations to Cuba to complement the many regular visits of our members to develop and service this important market.

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USA Rice Federation is the national advocate for all segments of the rice industry, conducting activities to influence government programs, developing and initiating programs to increase worldwide demand for U.S. rice, and providing other services to increase profitability for all industry segments.

Contact: David Coia, dcoia@usarice.com, (703) 236-1444