Hearing of Committee on Finance - Treasury Department Decision on Sales of U.S. Agricultural Product to Cuba

Hearing of Committee on Finance - Treasury Department Decision on Sales of U.S. Agricultural Product to Cuba

Sen. Chuck Grassley, chairman of the Committee on Finance, today criticized the
announcement of the Department of Treasury that it is mandating a change in payment practices with
regard to sales of U.S. agricultural products to Cuba.

The Trade Sanctions Reform and Export Enhancement Act of 2000 permits exports of U.S.
agricultural products to Cuba contingent upon "payment of cash in advance." Treasury today issued
a final rule that provides that the term "payment of cash in advance" means payment of cash prior
to shipment. Consistent with international practice, however, U.S. exporters of agricultural products
over the past three years have customarily received payment at other times in the shipping process,
including after the point that goods have reached Cuba. In these cases, exporters have retained title
and control of the relevant agricultural products until time of final payment. Grassley's statement
follows.

"I'm very concerned by Treasury's announcement. Cuba has become an important export
market for U.S. farmers in recent years. Treasury's final rule will likely lead to a reduction in U.S.
agricultural exports - including Iowa exports - to Cuba. That seems to run counter to the intent of
Congress in passing the Trade Sanctions Reform Act of 2000. I can't see any legitimate reason for
reinterpreting the law this way. I intend to weigh all available options before responding to this final
rule."

http://finance.senate.gov/press/Gpress/2005/prg022205a.pdf