Lawmakers weighed opening Cuba to U.S. agriculture at a hearing Tuesday as trade experts warned that American companies are losing ground to foreign competitors.
Experts testified on the benefits and drawbacks of ramping up U.S. trade with Cuba before the House Foreign Affairs Subcommittee on Terrorism, Nonproliferation and Trade.
{mosads}Subcommittee Chairman Ted Poe (R-Texas) called Cuba a natural destination for U.S. agricultural exports. He also cautioned that American farmers are at a disadvantage as foreign competitors cut trade deals with Cuba.
“In theory, our farmers have the freedom to export to Cuba, but in practice our government prevents it,” said Poe. “It’s time maybe to reassume and change the rules to allow our agricultural businesses to assume financial risk.
“The U.S. has the potential to be a strong contender in the Cuban market,” he added.
The 1962 embargo allows some goods to be exported but still provides many hurdles for the agriculture industry.
The hearing comes as President Obama prepares to visit Cuba on Sunday following his historic move to reopen diplomatic relations with the island nation.
Ahead of that trip, the administration has eased a number of travel and financial restrictions on Cuba. Those changes will make it easier for Americans to visit the island and use U.S. dollars in Cuban financial transactions.
But to fully restore large-scale business operations, Congress will need to lift the embargo on Cuba that has been in place for decades.
At the hearing, experts argued that the U.S. should act quickly.
“We continue to lose market share to competitors in other countries that are able to offer financing and do not have the cloud of government intervention overhanging their ability to reliably supply the Cuban market,” Ray Stoesser, president of the Texas Rice Council, told the committee.
But critics are cautious of rushing to do business with the Cuban regime until it takes steps to further democratize.
President Obama on Monday acknowledged that it would be unlikely Congress lifts the embargo under his term, but predicted it would happen under his successor.
“My strong prediction is that sometime in the next president’s administration, whether they are a Democrat or a Republican, that the embargo in fact will be removed,” he told CNN en Español.
This story was corrected on March 18 at 2 p.m. An earlier version misattributed a quote.