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Cuba ups Nebraska trade deal to $30 million

US exports continue despite cash-only regulation

Lincoln Journal Star
August 22, 2005
Cuba will purchase $30 million in Nebraska agricultural products in the next year and a half, Gov. Dave Heineman said Monday. Heineman

The news came less than a week after Heineman secured a deal for Nebraska to export $17 million in agricultural goods to the communist nation, starting with the first U.S. shipment of great northern beans to the island since Fidel Castro came to power in 1959. Heineman said Pedro Alvarez, chairman of Cuba's food import company Alimport, contacted Nebraska officials soon after they returned from Cuba and expressed interest in making more purchases. The original agreement called for Nebraska to ship 5,000 tons of great northern beans to be followed by 25,000 tons of corn, 25,000 tons of wheat, and 15,000 tons of soybeans.

The new agreement includes another 5,000 tons of great northern beans, 3,000 tons of pinto and black beans and other agricultural products.

Heineman led a 10-member trade delegation which included Nebraska Agriculture Secretary Greg Ibach and representatives of the Nebraska Farm Bureau and the state's corn and wheat boards.

A decades-old U.S. embargo against Cuba severely limits travel and trade with the island, but an exception created in 2000 allows food and agricultural products to be sold on a cash-only basis.

The trade deals comes as Cuban officials complain of a new U.S. rule requiring the island to make full payment for goods before cargo leaves American ports. Cuba originally planned to purchase up to $800 million in goods this year from the United States, but because of the new rule, some $300 million of that was diverted to other countries selling food products.

Alvarez said earlier that Cuba has spent $326 million on U.S. products so far this year, including transport and other costs, and will likely pass the amount it spent in 2004 — about $475 million — despite the new rule.

Alvarez also expressed an interest in importing medical supplies from Nebraska, and said Cuba would explore the possibility in future talks.

Heineman said he planned to return to the island in November. Earlier this year, Cuba signed a similar trade agreement with Louisiana Gov. Kathleen Blanco to buy $15 million in agricultural goods from the state.

Heineman is the fifth U.S. governor to go to Cuba, following Blanco. The first, George Ryan of Illinois, came on a similar trade mission in 1999. Governors John Hoeven, of North Dakota, and Jesse Ventura, of Minnesota, also have led trade delegations here in recent years.


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This page last updated August 23, 2005
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