CNN
March 3, 2002

Cuba buys $32 million in U.S. food products

                
                 HAVANA, Cuba (Reuters) -- Cuba, which took advantage of a modified U.S.
                 trade embargo to buy food products last year but said it was a one-time deal,
                 purchased another $32 million of food in recent days, a U.S. business group
                 said Monday.

                 "Since February 20, 2002, (Cuba's state-run food importer) has contracted for
                 more than 210,000 metric tons of agricultural commodities valued at more than $32
                 million," the U.S.-Cuba Trade and Economic Council said in its weekly publication,
                 Economic Eye on Cuba.

                 As part of the deal, agribusiness giant Archer Daniels Midland sold Cuba $17.5
                 million in corn, wheat, soy products and rice for delivery through May, the council
                 said.

                 The Caribbean island's importer, Alimport "is also contracting with other United
                 States-based companies for corn, wheat, rice, soy, poultry, and other agricultural
                 commodities," according to the New York-based group's weekly report on
                 Cuban-related commercial activity.

                 In 1959, the United States slapped an embargo on trade with Cuba after Castro
                 came to power. Congress passed legislation in 2000 that altered the trade embargo
                 to allow heavily regulated cash sales of food to the island. In December, Cuba
                 purchased $35 million in food products from American businesses -- the first such
                 deal in about 40 years.

                 Cuba said the deal was a one-time purchase, designed to replenish its emergency
                 supplies in the wake of Hurricane Michelle. But in early February, Cuban President
                 Fidel Castro hinted new purchases were under consideration.

                 "We could still buy for cash an amount similar to what we already bought," the
                 Cuban president told journalists. "If the exporters get a guarantee that the sales will
                 be authorized within a reasonable amount of time, like up to now."

                 Cuba's purchase of food from the United States last year, cooperation over the
                 detention of al Qaeda and Taliban captives at the U.S. Naval Base at Guantanamo
                 Bay, and conciliatory statements by Cuban officials have sparked speculation of a
                 thaw in relations after 43 years of mutual hostility.

                 However, President Bush's administration has insisted there will be no change in
                 U.S. policy toward the communist-run island until internal political reforms are
                 under way and there is an improvement of the human rights situation.

                 The trade deals have strengthened interest among U.S. business groups, in
                 particular the agricultural sector, an d in Congress to soften sanctions, despite
                 Bush's avowed support for them and opposition from U.S.-based Cuban exile
                 groups.

                 Around a dozen members of the Senate and House have met with Castro in Havana
                 so far this year, as have many U.S. business executives.

                 Various measures pending in the U.S. Congress would make trade with Cuba
                 easier, in some cases by providing financing or eliminating cumbersome licensing
                 procedures.

                 With an apparent eye on helping to get those measures passed, Castro said in
                 February, "Next year will depend on whether there is financing or not. Next year,
                 we could double or triple our purchases, let's say to around 20 percent to 25
                 percent of our food imports."

                 Cuba imports around $1 billion in food annually, mainly from Asia, Europe, and
                 Canada.

                    Copyright 2002 Reuters.