Increased trade only strengthens economic ties between the U.S. and Cuba but also plays a crucial role in addressing food security challenges on the island, according to USA Rice.

Forrest Laws

U.S. merchants shipped 1,125 metric tons of rice to Cuba in 2023. Considering that Cuba imports around 600,000 to 700,000 metric tons of rice per year, that may not seem like much of an accomplishment.

But it’s a 500% increase from the total of U.S. rice shipped to Cuba in 2022, and, considering the hoops Cuba’s grain buyers must jump through to buy the U.S. product, it’s a small miracle. It hasn’t always been like that.

“Cuba was the largest commercial market for U.S. long grain rice exports prior to the Revolution (and the U.S. Trade Embargo that followed),” according to USDA Economic Research Service analysts. “It often took more than half of U.S. long grain sales and almost one-third of total U.S. rice exports.”

Trying to build on that 2023 total – and the 861 metric tons of rice the U.S. shipped to Cuba from January to July of this year – was among the topics in a recent virtual briefing held by the Alliance for Cuban Engagement and Respect (ACERE), entitled “U.S.-Cuba Cooperation on Food and Climate Security: Opportunities for Growth.”

Cuba shipments

One of the five panelists for the briefing was Asiha Grigsby, USA Rice senior director for international promotion for the Western Hemisphere, who provided insights into the U.S. rice industry perspectives on trade and collaboration with Cuba.

In the early 2000s, the U.S. rice industry experienced a brief resurgence in rice shipments to Cuba. The Trade Sanctions Reform and Export Enhancement Act of 2000 allowed the sale of food and medicine to Cuba despite the trade embargo. The U.S. shipped 160,000 tons of rice to Cuba in 2004, the largest amount in decades.

But the sales dropped almost to zero in 2008 when the U.S. government began requiring Cuba to pay for the shipments before the ships left port rather than using conventional letters of credit. Grigsby emphasized the challenges U.S. rice exporters face due to such trade restrictions.

“U.S. rice industry members remain committed to exploring opportunities for growth, even in the face of a challenging political environment,” she said. “Increased trade, particularly in essential commodities like rice, not only strengthens economic ties between the U.S. and Cuba but also plays a crucial role in addressing food security challenges on the island.”

The Cuban economy has suffered from hurricane damages and a significant decline in U.S. tourism due to travel restrictions. Speakers at the ACERE event said bilateral cooperation could improve climate resilience and food security on the island.

Calls to action

The webinar concluded with several key calls to action for those seeking to advance U.S.-Cuba cooperation on food and climate security. Participants were urged to contact the White House and State Department to advocate for Cuba’s removal from the State Sponsors of Terrorism list, push for expanded operations at the U.S. Embassy in Havana, and encourage Senate support for the bipartisan Freedom to Export to Cuba Act (S. 653), which aims to lift the U.S. trade embargo and foster stronger bilateral ties.

The event was in sharp contrast to another attended by representatives of both the USA Rice Federation and the U.S. Rice Producers Association along with U.S. rice exporting companies – the first-ever International Rice Expo-Convention in San Pedro Sula, Honduras.

The two-day meeting was hosted by the Central American Rice Federation or FECARROZ. It included educational sessions covering a variety of critical topics such as the effects of climate change on rice production and a reflection on the 20-year anniversary of the Central America-Dominican Republic Free Trade Agreement.

USA Rice facilitated a session on rice quality in Central America by University of Arkansas agricultural economist Alvaro Durand-Morat who also provided a brief overview of the 2024 U.S. rice crop. 

U.S. Rice Producers Association board member Dennis Delaughter discussed the outlook for the U.S. and world rice markets. U.S. chefs sponsored by both organizations gave cooking demonstrations featuring U.S. rice.

Published Date: October 15, 2024