[Congressional Record Volume 151, Number 32 (Wednesday, March 16, 2005)]
[Senate]
[Pages S2848-S2849]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CHAMBLISS:
  S. 634. A bill to amend the Trade Sanctions Reform and Export 
Enhancement Act of 2000 to clarify allowable payment terms for sales of 
agricultural commodities and products to Cuba; to the Committee on 
Foreign Relations.
  Mr. CHAMBLISS. Mr. President, today I rise to introduce legislation 
to reverse the unilateral change by the Department of Treasury's Office 
of

[[Page S2849]]

Foreign Assets Control (OFAC) that threatens future sales of U.S. 
agricultural products to Cuba.
  Four years ago, Congress passed the Trade Sanctions Reform and Export 
Enhancement Act (TSREEA), allowing sales of food and medicine to Cuba 
for the first time in nearly four decades. The Act did not signal an 
end to the embargo or efforts to do so but merely exempted food and 
medicine from unilateral sanctions that harm local populations.
  Cuba first purchased U.S. agricultural products under the new 
authorities in December 2001. Since that time, Cuba has contracted to 
purchase approximately $1.25 billion worth of U.S. agricultural goods. 
According to the U.S. Department of Agriculture, U.S. agriculture, fish 
and forest product exports to Cuba in fiscal year 2004 totaled $402 
million, up 115 percent from a year earlier. The leading export items 
last year were rice, $65 million, poultry meat, $62 million, wheat, $57 
million, corn, $51 million, and soybeans, $38 million, from more than 
40 States in this country. Although U.S. agricultural trade with Cuba 
experienced tremendous growth in the past four years, the future is now 
in doubt.
  Late last year, OFAC and the State Department started considering 
actions to further tighten trade requirements on Cuba. At issue is the 
term ``cash in advance'' and the sale of licensed agricultural 
products. On February 22, 2005, after repeated urgings by Members of 
Congress to the contrary, OFAC amended the Cuban Assets Control 
Regulations to clarify the term whereby goods cannot leave the U.S. 
port at which they are loaded until payment is received by the seller 
or the seller's agent. The interpretation by OFAC runs counter to 
general trade practices and will likely shut down U.S. agricultural 
exports to Cuba.
  Currently, U.S. exporters require payment before turning over title 
and control of the goods. The exporters routinely ship U.S. goods to 
Cuba where they remain under the custody of the seller until such time 
as the seller certifies full payment. Only then are the goods released 
to Cuba. At no time is credit extended in any form to Cuba. This 
standard method of doing business has been in practice since sales to 
Cuba began.
  TSREEA was meant to expand access for agricultural producers to the 
Cuban market. By taking into consideration the unique nature of 
agriculture trade with Cuba, my legislation intends to overturn OFAC's 
new definition of ``cash in advance''. We should not be making it 
harder to export agricultural products when the United States is 
experiencing a massive trade deficit. I am committed to helping expand 
opportunities at home and abroad for our nation's farmers and ranchers. 
I look forward to working with my colleagues in the Senate on this 
important issue.
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