"Cash in Advance" Treasury Rule Shortchanges Farm Trade With Cuba
The Office of Foreign Assets Control (OFAC) issued a clarification Tuesday regarding the term "cash in advance" for shipments of food and medicine to Cuba. Senate Agriculture Committee Chairman Saxby Chambliss said the announcement by OFAC will make it more difficult for U.S. agriculture producers to market goods for the export market.
Chambliss points out that the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSREEA) was meant to expand access for agricultural producers to the Cuban market.
"This is the wrong decision at the wrong time. We should not be making it harder to export agriculture products when the United States is experiencing a massive trade deficit," said Chambliss. "This will hurt all agriculture exports. I will work with my colleagues in the Senate to explore all available options to correct this action in the coming weeks."
Last year, U.S. agriculture exported $380 million worth of product, a 53 percent increase from the year before.