Gov. Nixon and Missouri Farm Bureau Members Discuss Economic Benefits of Increased Trade with Cuba; Governor Announces Trade Mission to Havana

Press Release

Gov. Jay Nixon today joined Missouri Department of Agriculture Director Richard Fordyce and agriculture industry leaders at the Missouri Farm Bureau for a roundtable discussion on the economic benefits of increased trade to Cuba.

"Missouri farmers and ranchers continue to feed, fuel and clothe the world," said Gov. Nixon. "Expanded trade with Cuba is a tremendous opportunity for us to build on this strong foundation, for farmers to add value to their products, and for communities to create jobs across the Show-Me State."

The Governor also announced that he will be traveling to Havana from March 1-4 with members of the U.S. Agriculture Coalition for Cuba (USACC) to explore how to maximize the benefits of expanded trade to Cuba for Missouri producers. Gov. Nixon and Director Fordyce were recently in Washington, D.C. for the public launch of the USACC, a group of more than 40 prominent U.S. food and agriculture companies and associations calling on Congress to lift the embargo and allow open trade and investment to occur.

"The more Missouri goods we sell around the globe, the more good jobs we create here at home," said Gov. Nixon. "Lifting these trade barriers is also an opportunity to extend the reach of our democratic values and ideals. Throughout the world, we have seen examples of how the free exchange of goods and ideas can advance freedom and democracy."

"Cuba is the home to 11 million potential customers of Missouri agriculture products," said Blake Hurst, president of Missouri Farm Bureau. "They are interested in what our farmers produce, and we believe normalizing trade relations between our two nations is a win for everyone involved."

During the trade mission, the Governor and members of the delegation will meet with government officials, including ministers who oversee issues related to trade, agriculture and economic development. Groups participating include the Missouri Farm Bureau, the Missouri Rice Council, the Missouri Forest Products Association, Dairy Farmers of America, the U.S. Dairy Export Council, and the U.S. Rice Federation.

Travel costs for the Governor will be covered by the Hawthorn Foundation, a nonprofit organization dedicated to promoting economic growth in Missouri; state taxpayer funds will not be used.

The U.S. Agriculture Coalition for Cuba (USACC) is a coalition of more than 40 food and agriculture companies and organizations united around the opportunity presented by a more open U.S.-Cuba relationship and committed to ending the embargo and allowing open trade and investment to occur.

The United States began selling food to Cuba in 2002 during the administration of President George W. Bush. Today, U.S. producers sell Cuba about $350 million a year in farm products. However, current U.S. financing restrictions require Cuban buyers of U.S. agricultural products to pay in cash, upfront and through a third party bank in another country, putting American producers at a competitive disadvantage. Were the United States to lift these government regulations and interact with Cuba in a manner similar to free market trade agreements held with other nations, including China, Vietnam and Russia, it is estimated that total U.S. exports to Cuba could reach $4.3 billion annually.

Increasing exports has been a central focus of Gov. Nixon's efforts to create jobs and grow Missouri's economy. Since the Governor's Strategic Initiative for Economic Growth recommended developing a "Best in Class" foreign trade initiative, Gov. Nixon has led successful trade missions to China, Brazil, Korea, Europe, the Republic of China (Taiwan), and Canada, closing agreements to sell a total of $9.7 billion in Missouri goods. Exports of Missouri goods are expected to reach $14 billion in 2014.

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