Gov. Hutchinson asks Congressional leaders to improve trade terms with Cuba

Gov. Asa Hutchinson (R) on Tuesday (Nov. 3) sent letters to four Congressional leaders asking them to support legislation that would help open the Cuban economy to “nearly $40 million” in Arkansas products. The letter follows up on his recent three-day trade trip to Cuba.

Hutchinson, who was the first U.S. governor to visit Cuba after President Obama re-established diplomatic relations earlier this year, said after the trip he would ask Congress to consider specific legislation making trade easier with Cuba’s more than 11 million inhabitants.

While the governor says Cuba must still prove it will be a honest partner, he said the U.S. could take actions like loosening travel restrictions and changing credit terms for large trade deals to help U.S. businesses enter the market. Hutchinson has said Arkansas’ agri industry could benefit from improved trade with Cuba.

“As you know, while in Congress, I voted to maintain the embargo on Cuba, and my opinion of the importance of increasing the freedom of the Cuban people remains the same,” Hutchinson noted in a letter to newly elected House Speaker Paul Ryan. “However, I don’t believe that lifting the embargo is an all-or-nothing matter. Congress, under your leadership, can undertake efforts that would benefit Americans while maintaining political pressure on a regime that has violated human rights for more than fifty years.”

In addition to Ryan, Hutchinson addressed similar letters to Senate Majority Leader Mitch McConnell, Senate Minority Leader Harry Reid, and House Minority Leader Nancy Pelosi. In each letter, Hutchinson uses each letter to ask for support of legislation sponsored by U.S. Sen. John Boozman, R-Ark., and U.S. Rep. Rick Crawford, R-Jonesboro, that would allow a credit system for trade with Cuba.

“As Cuba recognizes benefits from eased restrictions, we must be able to similarly recognize benefits for Americans. In this area, Congress has an important role to play. The current cash-in-advance requirement limits a potential market of nearly $40 Million for Arkansas products alone. Allowing flexibility in credit extension is an important next step, and Congress can support enhanced livelihoods for Americans by moving the legislation cosponsored by Congressman Rick Crawford (H.R. 3687) and Senator John Boozman (S.1049), which provide financial flexibility to sell American commodities to Cuba,” Hutchinson noted.

Not all trade between Cuba and U.S. and Arkansas companies is closed. U.S. poultry companies including Tyson Foods have sold $63.284 million of frozen chicken to Cuba through July of this year, according to the council records. Chicken comprises 51% of the total exports to Cuba. Arkansas companies say more trade is possible, which is why officials from Springdale-based Tyson Foods and Siloam Springs-based Simmons Foods were part of Hutchinson’s recent trade delegation to Cuba.

Dr. H.L. Goodwin, professor and agri-economist at the University of Arkansas, said Cuba holds potential for poultry exports from U.S. processors. He said Cubans prefer dark meat and having another dark meat market close to the U.S. could yield more sales for local companies if the required cash-only terms that now exist can be reviewed.

However, it may be national leaders in Hutchinson’s Republican Party who make it difficult to further open trade with Cuba. In a Presidential election cycle, trade with Cuba has become an issue, with Republican U.S. Sens. Ted Cruz of Texas, and Lindsey Graham of South Carolina vowing to block efforts to fund President Obama’s effort to open diplomatic relations with Cuba. Both men are GOP presidential candidates. Another GOP presidential candidate, U.S. Sen. Marco Rubio, R-Fla., has come out in opposition to normalizing relations with Cuba.