WASHINGTON, DC -- Today the U.S. International Trade Commission (USITC) held a public hearing for their section 332 study entitled "Overview of Cuban Imports of Goods and Services and Effects of U.S. Restrictions." Terry Harris of Riceland Foods represented USA Rice on the first panel.
Following prepared testimony, Commissioners questioned panelists, including Harris, representatives from the U.S. Grains Council, the Dairy Farmers of America, and the chairwoman of the U.S. Agriculture Coalition for Cuba (USACC), about working with Alimport, the sole agency responsible for imports into Cuba. The Commissioners were interested in panelists' knowledge of financial transactions between Cuba and its current trading partners, and also how relationships between Cuba and its trading partners may be affected by imports from the United States.
The USITC also asked about the impact of trade with Cuba on individual states.
"Rice from Arkansas and Louisiana could account for approximately three quarters of sales to Cuba in the years immediately following the establishment of normal commercial relations with Cuba," said Harris. "This could be new demand of up to 100,000 metric tons for just these two states, with an estimated value of $46 million at today's prices. We would expect these states to be the dominant suppliers to Cuba for the foreseeable future, but all producing states in the Mid-South will benefit."
The USITC investigation came at the request of the Senate Committee on Finance in response to the Obama Administration's recent shift on relations with Cuba.
"We expect the report will support the overwhelming majority of U.S. agriculture, including USA Rice, seeking a return to normal commercial relations with Cuba," said USA Rice COO Bob Cummings.
The complete section 332 report is scheduled for publication on October 15.