Cuba's Decision to Eliminate U.S. Dollars From Circulation Should Not Affect Ability of U.S. Firms to Sell Products to Cuba
The head of Alimport, Cuba's food buying agency, has stated that the Cuban government's announcement last week that it was eliminating U.S. dollars from general circulation on the island will have no impact on Cuba's ability to purchase food, medicine and medical devices from U.S. producers. U.S. firms are expected to close deals to sell more than $150 million worth of corn, wheat, cattle and other U.S. products to Cuba at the Havana International Fair taking place this week. More than 125 U.S. companies have registered to participate in the trade show.
The value of U.S. agricultural goods exported to Cuba in 2004 has already reached $298 million and could exceed $400 million, more than double the value of 2003 exports, according to Dr. Parr Rosson, Extension economist and director of the Center for North American Studies at Texas A&M University. Cuba is now the U.S.'s 25th largest market for agricultural products and is the third largest market for U.S. rice behind Japan and Mexico. Corn, wheat, milk, powder, soy flour and soybeans are among the other top exports. Wheat exports to Cuba are 100 percent above 2003, while corn exports are up 87 percent and soybeans are up 60 percent.
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