H. R. 3687
IN THE HOUSE OF REPRESENTATIVES
October 6, 2015
Mr. Crawford (for himself, Mr. Conaway, and Mr. Poe of Texas) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
To modify the prohibition on United States assistance and financing for certain exports to Cuba under the Trade Sanctions Reform and Export Enhancement Act of 2000, and for other purposes.
This Act may be cited as the
Cuba Agricultural Exports Act.
Congress finds the following:
The United States has a long history of providing safe and reliable exports. Close proximity to Cuba further lends itself to low transportation costs for United States goods exported to Cuba. The United States is geographically poised to be a significant trading partner in agricultural commodities. United States and Cuban borders are less than 100 miles apart, meaning lower shipping costs and shorter transit times compared to our competitors.
Cuba imports approximately 80 percent of its food, with global agricultural exports to Cuba doubling over the past decade to $1.9 billion.
In 2005, the United States Department of the Treasury published a final rule narrowing the definition of
cash in advance for trading with Cuba, requiring that cash payments must be made before United States products leave United States ports, rather than the more customary payment upon delivery. United States firms are precluded from offering credit to ALIMPORT, a state-owned and state-controlled entity that makes all decisions regarding United States imports to the Cuban market, resulting in declining United States agricultural exports to Cuba. Notably, rice exports fell from a value of $64 million in 2004 to essentially $0 in 2009 and subsequent years. Recent action by the Administration reverses that change to the definition of cash in advance, but United States agricultural exporters are still not permitted to extend credit to Cuban buyers, a key disadvantage relative to other exporting nations.
Despite these restrictions, the United States has been the largest exporter of agricultural goods to Cuba over the last decade. However, the United States slipped to being the second leading exporter of agricultural goods to Cuba in 2013 and the third leading exporter of agricultural goods to Cuba in 2014.
While trade opportunities exist, Cuba remains an undemocratic autocracy that oppresses its own people and restricts freedom.
In addition, there is no opportunity for United States agricultural businesses to trade directly with the Cuban people and there is no Cuban market. At present, there is just one opportunity for United States businesses to trade with Cuba and that is through ALIMPORT, the state-owned and state-controlled entity described in paragraph (3).
With these cautionary factors in mind, it is important to provide United States farmers and ranchers additional opportunities to benefit from trade with Cuba.
Modification of prohibition on United States assistance and financing for certain exports to Cuba under the Trade Sanctions Reform and Export Enhancement Act of 2000
Assistance for exports to Cuba
Section 908 of the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7207) is amended—
in the section heading, by striking
by striking subsection (b);
in subsection (a)—
by redesignating paragraphs (2) and (3) as subsections (b) and (c), respectively, and by moving such subsections, as so redesignated, 2 ems to the left; and
by adding at the end of subsection (a) the following:
Exception for certain programs
Subject to subparagraph (B), paragraph (1) shall not apply with respect to exports to Cuba under section 202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5622), section 203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623), or section 702 of the Agricultural Trade Act of 1978 (7 U.S.C. 5722), including any obligation or expenditure of funds by Federal commodity promotion programs established in accordance with a commodity promotion law, as defined by section 501(a) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7401(a)).
Restriction on certain recipients
The exception under subparagraph (A) shall not apply if the recipient of the United States assistance would be an entity controlled by the Government of Cuba, including the Revolutionary Armed Forces of Cuba, the Ministry of the Interior of Cuba, or any subdivision of either governmental entity.
in subsection (b), as so redesignated, by striking
paragraph (1) and inserting
subsection (a); and
in subsection (c), as so redesignated, by striking
paragraph (1) and inserting
Financing of sales of agricultural commodities to Cuba
Notwithstanding any other provision of law (other than section 908 of the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7207), as amended by subsection (a)), a person subject to the jurisdiction of the United States may provide payment or financing terms for sales of agricultural commodities to Cuba or an individual or entity in Cuba.
In this section:
agricultural commodity has the meaning given the term in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
financing includes any loan or extension of credit.
The amendments made by this section take effect on the date of the enactment of this Act and apply with respect to exports to Cuba on or after such date of enactment.
Authority of persons subject to the jurisdiction of the United States to invest with respect to certain agricultural business in Cuba
Notwithstanding any other provision of law, a person subject to the jurisdiction of the United States may make an investment with respect to the development of an agricultural business in Cuba if the Secretary of State and Secretary of Agriculture jointly determine that—
the agricultural business is not controlled by the Government of Cuba, including the Revolutionary Armed Forces of Cuba, the Ministry of the Interior of Cuba, or any subdivision of either governmental entity; and
the agricultural business does not traffic in property of persons subject to the jurisdiction of the United States which was confiscated by the Cuban Government on or after January 1, 1959.
In this section:
The term agricultural business means any entity involved in the production, manufacture, or distribution of agricultural products (as such term is defined in section 207 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1626)).
Confiscated, Cuban Government, property, and traffic
The terms confiscated, Cuban Government, property, and traffic have the meaning given such terms in section 4 of the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6023).
The term investment, with respect to the development of an agricultural business in Cuba, means—
entry into a contract involving the purchase of a share of ownership, including an equity interest, in the development of the agricultural business;
entry into a contract providing for participation in royalties, earnings, or profits in the development of the agricultural business; or
entry into, or performance or financing of, a contract to sell goods, services, or technology relating to the agricultural business.