U.S. food exports to Cuba fell 26 percent in 2009

U.S. food exports to Cuba fell 26 percent in 2009
Friday February 12, 2010 04:32:00 PM GMT

USA-CUBA/TRADE
* Drop due to Cuba's economic troubles
* Unlikely that sales will increase this year
By Esteban Israel

WASHINGTON, Feb 10 (Reuters) - U.S. food and agricultural exports to
Cuba plunged 26 percent to $528 million in 2009 as the cash-strapped
island scrambled to reduce its huge import bill, a New York-based trade
group said on Wednesday.

The severe drop, from $710 million in 2008, broke a long trend of rising
sales since the U.S. government authorized agriculture exports to the
Communist-run island in 2000 in a break in the longstanding U.S. trade
embargo against Cuba.

"The decrease has nothing to do with U.S. law, regulation, or pricing.
It's simply a consequence of Cuba being in troubling commercial and
economic times," said John Kavulich, senior advisor at the U.S.-Cuba
Trade and Economic Council.

He said there "nothing to indicate" that 2010 exports would be any
better than 2009.

Cuba has seen its foreign income severely reduced by the global
recession, which cut revenues from nickel exports and tourism, the
island's biggest money earners.

Major hurricanes that swept the island in 2008 further drained its
resources.

President Raul Castro has taken several steps aimed at producing more
food locally to reduce the need for imports.

Cuba imports about 70 percent of its food because of its inability to
grow what it needs.

The $710 million value for 2008 exports was partly due to an increase in
commodity prices, the trade council said.

Strict U.S. regulations require Cuba to pay cash in advance to U.S.
producers, with no credit available.

In recent years the island has turned to friendlier governments offering
flexible long-term financing, such as Brazil, China and Vietnam.

"They are turning to suppliers who don't mind waiting for their money,"
Kavulich said.

Venezuela is Cuba's top-political ally and number one trading partner.
The U.S. comes fifth.

Still, U.S. exports to Cuba in 2009 made the island the 36th biggest
market for American agricultural products, the council said.

Cuba imports from the U.S. last year included, among other things,
frozen chickens, corn, wheat and soybeans. (Reporting by Esteban Israel;
editing by Jeff Franks)

U.S. food exports to Cuba fell 26 percent in 2009 18:49 Hours ago (11
February 2010)
http://www.forexyard.com/en/news/food-exports-to-Cuba-fell-26-percent-in-2009-2010-02-11T003240Z-US