
Prices of Japan-grown no-wash rice have risen 20% in a year in certain cases.
Legislation urged to ease exports
USA Rice and industry leaders are seeking legislation to remove barriers to U.S. trade with Cuba to ease the way for U.S. rice exports to the island nation.
The groups are members of the U.S. Agriculture Coalition for Cuba, a group that supports improving agricultural trade between the U.S. and Cuba.
"USA Rice wants a piecemeal approach to be taken both administratively and legislatively to ease current restrictions on trade, travel, financing, etc., so that Cuba can grow its economy and become a reliable commercial importer of U.S. rice once again," USA Rice's Vice President of Policy and Government Affairs Peter Bachmann said Monday.
"However, any legislative action that liberalizes the U.S.-Cuba relationship is seen as very contentious among a bipartisan group within Congress because of the political implications for South Florida and Miami, where there's a dense Cuban and Cuban-American population. This makes passage of legislation difficult with a Democrat majority in Congress and close to impossible with a Republican majority."
Bachmann noted President Joe Biden's administration has not prioritized relations with Cuba as President Barack Obama did.
"Regardless of whatever administrative actions are taken, congressional action to allow for financing and/or lifting of the embargo are necessary for normal commerce to resume," Bachmann said.
Major rice consumer Cuba was once a top market for U.S. rice exports, and Arkansas grows nearly half of all rice produced in the U.S.
Cuba now imports rice from Asian and South American countries, according to a recent USA Rice news release.
Cuba can currently buy U.S. rice legally if the importer pays in cash up front and uses a third-country bank, such as the Bank of Canada, as an intermediary to allow the exchange of any money, per the Trade Sanctions Reform and Export Enhancements Act of 2000.
The requested legislation would allow U.S. banks to directly provide financing for Cuban buyers and help U.S. exporters compete for better credit terms.
Cuba is facing increasing economic pressures brought on by the pandemic.
Cubans are experiencing shortages of food, energy, medicine and fuel, and recent protests spurred Biden to issue a statement about three weeks ago calling on the nation to respect the right to peaceful protest.
Cuba's economy is recovering gradually and should show growth this year, but the country's economy is still 7.3% below where it was in 2019, per a July 21 Reuters report.
The U.S. imposed an arms embargo against the country in 1958 in the wake of the Cuban Revolution, Fidel Castro's rise to power and the establishment of a Socialist state in Cuba. President John F. Kennedy's administration imposed an all-encompassing trade embargo in 1962.
The U.S. trade embargo cannot be lifted without Congressional approval and remains in place today.
President George H.W. Bush increased U.S. economic sanctions against Cuba in 1992 following the collapse of the Soviet Union, but offered a path to normalizing relations via significant political and economic reforms, according to the Council on Foreign relations, an independent nonpartisan think tank.
The U.S. embargo was further tightened and codified in 1996, penalizing foreign companies that do business with Cuba.
Obama eased restrictions on travel and remittances in 2009, in a move considered the most notable step toward normalizing relations with the country to date.
The Cuban government approved several economic reforms in 2011.
Obama and Raul Castro announced plans to restore full diplomatic ties after a prisoner exchange in 2015, though the Republican-controlled Congress at the time vowed to uphold the economic embargo.
In 2015, Gov. Asa Hutchinson called for Arkansas to position itself to export goods like rice and poultry to Cuba, as Congress considered ending the 50-year-old trade embargo with the nation. In 2016, Arkansas Rice Federation members traveled to Cuba to discuss the future of trade. Then, in 2017, President Donald Trump announced he would reinstate travel and business restrictions.In May, Biden eased Trump-era sanctions against Cuba, focusing on expanding travel and making it easier for families to visit relatives in the country.
The U.S. produces about 30% more rice than Japan.
Prices of Japan-grown no-wash rice have risen 20% in a year in certain cases.
China will import American rice for the first time after a new trade deal was agreed to Thursday.
"The agreement with China has been in the works for more than a decade and I'm pleased to see it finally come to fruition, especially knowing how greatly it will benefit our growers and industry," said U.S. Agriculture Secretary Sonny Perdue in a statement.
China produces 20 times more rice than the U.S., but it's also the world's biggest consumer. Recently it has been buying more rice abroad, spending way over $1 billion in some years, to feed its population. Last year, China imported about 5 million tons, according to the U.S. Department of Agriculture (USDA). The U.S. alone couldn't satisfy that demand. America exports between 3 million and 4 million tons a year, according to the UN Food and Agriculture Organization. China was once largely able to feed itself, especially with rice. But it's been relying more on imports in recent years, said Rob Bailey, an expert in food security at Chatham House, a policy institute in London. Rising food imports partly reflect challenges in Chinese agriculture. The rural population is aging, crop yields are low and there are high levels of soil depletion. Pollution and climate change also threaten production. Bailey said China was being smart in finding new sources of rice because temporary export bans from other Asian countries have caused problems in the past. "China's probably thinking, 'If we are going to import rice, let's not be too reliant on the Asian market'," he said. Related: China is crushing the U.S. in renewable energy The USDA said exports to China can begin once Chinese officials have completed an audit of U.S. rice facilities. China's Ministry of Agriculture and Ministry of Commerce did not immediately respond to requests for comment. The breakthrough comes two months after the U.S. Commerce Department announced a dealthat will allow U.S. beef and natural gas exports to flow into China. And it comes in the week that top Chinese and U.S. officials met to talk about trade. Nevertheless, the relationship remains strained. President Trump has called out Beijing for what he considers to be unfair trading practices, and he wants to reduce America's huge trade deficitwith China. This sentiment was echoed by U.S. officials after the Wednesday meetings, with a statement saying there was a "shared objective to reduce the trade deficit" with China. A Chinese statement that came out later mentioned the deficit, but focused on many more issues that the two sides should cooperate on over the coming year. Meanwhile, the issue of steel trade continues to be a delicate matter. Trump's administration may soon slap tariffs on Chinese shipments of steel to the U.S. -- Nanlin Fang and Donna Borak contributed to this report.![]() |
South Korean Minister of Agriculture, Food and Rural Affairs Kim Yung-rok. (Yonhap) |
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This resolution follows on the heels of a June 1resolution which removed the phytosanitary pest Tilletia horrida from Colombia’s official pest list. ICA conducted a study that found that tilletia horrida is already present in various locations in Colombia. The study, which collected 54 samples from farms and mills, found tilletia horrida in 92 percent of the collected samples.
On June 6, the Colombian Agricultural Institute (ICA) published “Official Resolution No. 6705 of 2017” which removed a previous resolution that restricted imported U.S. paddy rice to the port of Barranquilla. The previous resolution also implemented phytosanitary measures for the transportation of U.S. paddy rice and for the management of residues (such as husks) after being milled in Colombia. These mitigation procedures and restrictions to one port in Colombia are now null and void. This resolution follows on the heels of a June 1resolution which removed the phytosanitary pest Tilletia horrida from Colombia’s official pest list. ICA conducted a study that found that tilletia horrida is already present in various locations in Colombia. The study, which collected 54 samples from farms and mills, found tilletia horrida in 92 percent of the collected samples. “This is excellent and long-awaited news,” USA Rice Chairman Brian King said. “By removing the restrictions on U.S. paddy rice and allowing it to enter any maritime port, U.S. rice will be more competitive in the Colombian market.” In June of last year, USA Rice led a trade mission of 10 people to Colombia to meet with ICA and stress the importance of concluding the study in a timely manner and improving access for U.S. rice. Within three months of the visit, ICA agreed to reduce the mandatory minimum grain moisture content of U.S. rough rice, one of the required mitigation procedures. “USA Rice has been working with APHIS and FAS since 2012 to remove these restrictions on U.S. paddy,” USA Rice President and CEO Betsy Ward said. “We are thrilled to see that everyone’s hard work has finally paid off.” Last year, the U.S. exported 140,000 MT of rice valued at $58 million and more than 40 percent was paddy rice. Colombia, our 51st largest market prior to the U.S.-Colombia Free Trade Agreement, has become one of the top fifteen U.S. export markets for the past four years.![]() |
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