BY NANCY SAN MARTIN
Five months after Hurricane Michelle ravaged crops across Cuba, companies
in half the states in America have
joined the business bandwagon with the communist nation, with total sales
reaching an estimated $73 million, or
more than twice the original amount of the deal.
Agricultural products stretching across 25 states -- from Alabama to Wisconsin,
but not including Florida -- are
being boxed and shipped to Cuba, according to the U.S.-Cuba Trade and Economic
Council Inc. report released
this week. The products are being provided by at least 15 U.S. companies
that have agreed to do business with
the Cuban government.
Cuba is still recovering from the destruction caused by the Nov. 2 storm
that reached 125-mph winds, but the
sales have gone far beyond replacement of losses, the original objective,
to assume a new dimension, Cuban
officials and business leaders say.
''The first purchases were strictly for reserves, but other purchases have
a different character,'' said Luis
Fernández, a spokesman for the Cuban Interests Section in Washington.
``Whether this will continue, I don't
know.''
The sales consist of various food products, including corn, rice, chicken,
apples and peas. They come at a time
when the Bush administration has threatened to tighten the embargo, even
as Congress is divided over the issue.
Since the first deals were reached in mid-November, the Bush administration
has tried to dampen speculation that
they could lead to more permanent trade relations. Yet, the amount of sales
have risen from the original estimate
of about $30 million to $73 million. And more contracts are in the works.
But even as the sales have increased, the administration has impeded efforts
to strengthen ties between
entrepreneurs and Cuban officials. Visas recently were revoked for various
Cuban officials, including Pedro
Alvarez Borrego, president of Alimport, the government entity responsible
for import purchases.
He was among a group of Cubans that were to visit various farming states
and inspect poultry facilities in
Michigan, Indiana, Georgia, Arkansas and Texas. Efforts to reach Alvarez
Borrego for comment were
unsuccessful.
10 MILLION EGGS
Among the most recent contracts is the sale of 10 million eggs to be delivered
to Havana this month through June,
in what is being billed as the first import of eggs by Cuba in four decades.
The eggs are coming from various
states including Maine, Massachusetts, Vermont, New Hampshire and Connecticut.
The agreement with Radlo Foods LLC based in Watertown, Mass., took place
in February with the support of United
Egg Producers of Atlanta, the egg industry's trade association, said David
Radlo, president and owner of the
company.
He traveled to the island with a delegation of 25 other food producers and exporters.
''We see this sale as not just international cooperation and possibly expanding
market, but we're really helping
people put food on their table,'' Radlo said. ``They needed the product.
They sustained a terrific blow with
Hurricane Michelle and they're trying to get back on their feet.''
FERRIED BY SEA
Like the first shipment of products in December, this one, too, is to be
ferried by sea. The shipments so far have
gone through ports in Louisiana, Mississippi and Texas.
Port directors say the new deals with Cuba are worth watching because of
the potential of establishing a growing
market worth billions of dollars.
''Our expectation is that once relations are normalized, we think there
is an opportunity for this port,'' said Paul
Dauphin, a spokesman for the Port of New Orleans. ``As a policy, we have
not tried to go down there because of
the embargo, but we've got an eye on what's going on.''
Cuba was a leading trading partner with New Orleans in the 1950s. But the
relationship was severed after the
United States implemented the trade embargo following President Fidel Castro's
rise to power in 1959 and his
nationalizing of U.S. property on the island.
The new purchases are allowed under the Trade Sanctions Reform and Export
Enhancement Act of 2000, which
permits the commercial export of food and agricultural products to Cuba
with a caveat: The government must pay
for the purchases in cash.
Jorge Salazar-Carrillo, director of the Center for Economic Research at
Florida International University, said Cuba
does not have enough cash in its reserves to pay for the products, suggesting
that underhanded deals are taking
place.
''These are off-the-cuff type of deals,'' Salazar-Carrillo said. ``This is a concerted effort to break the embargo.''
In Washington, enforcement authority seems to be unclear. Officials in
the Treasury Department said the
responsibility belongs to Commerce. Officials in Commerce did not have
an answer and said they would check into
the matter.
Radlo said Cuba makes payments through third countries. Though he has not
yet received his fee because the
payment is made after the goods arrive, Radlo said he is confident it will
not be an issue.
''All the reference checks with other companies show they've gotten paid,
like clockwork,'' Radlo said.
``Obviously, it's a reasonable risk. It took us 43 years to get the first
order. Hopefully, it won't take another 43
for the next one.''