CNN
January 24, 2002

U.S. agribusiness, drug companies talk trade in Cuba

 
                 HAVANA, Cuba (AP) -- Keen to do business, U.S. agribusiness and drug
                 companies are coming to a Cuba that has signaled it may be ready to buy
                 more products.

                 The high-profile visits Thursday come as Cuba courts Americans who oppose
                 long-standing restrictions on U.S. trade with the Caribbean island.

                 While hopes for a trade opening between the two countries are high among Cuban
                 officials and American firms, one trade specialist warned against excessive
                 optimism. Most U.S.-Cuba trade is barred by a 40-year-old embargo, and Cuba
                 bought American food for the first time in nearly four decades only after a
                 November hurricane.

                 "The relationship between the United States and Cuba has never been reflected in
                 one moment, but rather a series of moments, some more important than others"
                 said John Kavulich, president of the New York-based U.S.-Cuba Trade and
                 Economic Council.

                 "Those who espouse that the moments occurring during the last 60 days are
                 seminal in the relationship have far too simplistic a view," Kavulich said.

                 Nevertheless, people on all sides of the trade debate took notice this week when
                 Pedro Alvarez, president of Cuba's food import enterprise, said his government
                 could buy more American agricultural products if it receives more encouraging
                 signs from Washington.

                 It was the first time that a Cuban official had declared the communist government
                 would consider buying more American food. Cuban leader Fidel Castro earlier had
                 said that $35 million in food contracts signed late last year with U.S. companies
                 were a one-time deal. Deliveries are being made this and next month.

                 B efore Hurricane Michelle, Havana had refused to take advantage of a U.S. law
                 passed in 2000 allowing the direct food sales.

                 Now that the first sales have been made, American agribusiness hopes for more.

                 "The U.S. could effectively compete with current traditional traders in the Cuban
                 market," Don Marsh, president and CEO of the Indiana-based Marsh supermarket
                 chain said this week.

                 Marsh traveled here to publicize his company's sale of 1,000 metric tons of pork
                 lard to Cuba under last year's contracts.

                 Warren Staley, Chairman and CEO of Minneapolis, Minnesota- based Cargill Inc.,
                 was making a similar visit here Thursday with other company executives and three
                 farmers from Illinois, Minnesota and Nebraska.

                 "Cargill will continue to work to broaden Cuba's access to U.S. farm products," the
                 company said in a fact sheet distributed before the trip. "The lifting of U.S.
                 restrictions on private financing of food sales and travel restrictions are the next
                 logical steps in further opening the U.S.-Cuban trading relationship."

                 Later Thursday, Cargill executives were to greet the arrival of 24,000 metric tons
                 of corn shipped from New Orleans under contracts signed after the hurricane.

                 While the focus on U.S. trade with Cuba now centers on food products, drug
                 companies also want to do business, said Mark Rasenick, director of Biomedical
                 Neuroscience Training at the University of Illinois' College of Medicine.

                 "Under current regulations they cannot do much," Rasenick said by telephone.
                 While the embargo has never barred sales of U.S. medicine and medical supplies, "a
                 lot of American companies just give up because it is so hard to get the licenses."

                 Rasenick, who has traveled to Cuba several times investigating exchanges between
                 American and Cuban scientists, said he was encouraged by Illinois Gov. George
                 Ryan's two-day visit.

                 Ryan was to arrive Thursday afternoon, accompanied by representatives of the
                 Illinois firms Ferris Manufacturing, Medline, DMS Pharmaceutical, JLR
                 International and Century Healthcare.

                 After Hurricane Michelle swept across Cuba in early November, Havana politely
                 rejected the American government's offer of humanitarian help and said it preferred
                 to make direct purchases of U.S. food and medicine to replenish its reserves.

                 While Cuba has signed contracts for the food, no such contracts have been made
                 for medicine and medical supplies.

                  Copyright 2002 The Associated Press.