Senator Amy Klobuchar

Working for the People of Minnesota

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Joel Gross
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Klobuchar, Enzi Introduce Legislation to Expand U.S. Exports to Cuba

Bill will boost U.S. agriculture industry by easing restrictions on sale of home-grown food and commodities to Cuba

March 11, 2010

Washington DC – Today U.S. Senators Amy Klobuchar (D-MN) and Mike Enzi (R-WY) introduced legislation to allow for increased sales of U.S. food and commodity exports to Cuba, creating new opportunities for American farmers to sell their products overseas.  The Travel Restriction Reform and Export Enhancement Act is a companion bill to H.R.4645, introduced in the House by Rep. Collin Peterson (D-MN) earlier this year.

“American famers can greatly benefit from access to new markets in Cuba at a time when our economy needs it most,” said Klobuchar. “This bill will create jobs by promoting U.S. agriculture exports.  In addition, Cubans and Americans will be able to engage in open communication, an important step towards improving relations between our two nations.”

 “Trade is an incredibly effective way to open communication with the Cuban people. Not only will the trade of agricultural products help Cubans, it will expand a much needed market for American farmers and ranchers. Open trade is a positive step and I look forward to this bill becoming law,” said Enzi.

The Klobuchar-Enzi legislation would allow exports to Cuba to occur under the same payment requirements as exports from other nations and eliminate the need for U.S. exporters to conduct payment transactions for agricultural sales to Cuba through banks in other nations.  Under long-standing U.S. trade regulations, all Cuban payments for U.S. agricultural products must be made before the products are received in Cuba, and payment transactions must be conducted through banks outside the U.S. or Cuba.  The Administration provided a temporary reprieve from these requirements in 2010, and the Klobuchar-Enzi legislation would lift these restrictions permanently.  In addition, the legislation will remove all restrictions on U.S. citizens traveling to Cuba. Cuba is the only nation which U.S. citizens are currently prohibited from traveling to by law.

The legislation will maintain existing requirements that U.S. agricultural exports to Cuba be paid for in cash, will only apply to categories of U.S. exports to Cuba permitted under current law, and will not allow Cuban exports access to U.S. markets.

In 2009, the U.S. International Trade Commission estimated that U.S. exports to Cuba could increase by nearly $500 million a year if provisions in the Klobuchar-Enzi legislation were enacted.  In addition, allowing U.S. citizens to travel to Cuba would produce an estimated $1.2 billion to $1.6 billion a year and create as many as 23,000 jobs for the U.S. travel industry, according to one study.

Klobuchar, the Chairman of the Senate Commerce Subcommittee on Competitiveness, Innovation and Export Promotion, has led the effort to find new markets for U.S. products overseas, particularly for small and medium-sized producers. Last December, Klobuchar called for a report to detail the resources currently available to help small businesses increase their exports and provide recommendations for strengthening these programs.

Both Klobuchar and Enzi are cosponsors of the Promoting American Agricultural and Medical Exports Act of 2009, which would facilitate the export of U.S. agriculture, medical devices and medicines to Cuba, and the Freedom to Travel to Cuba Act, which would allow for unrestricted travel to Cuba by U.S citizens.

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