AssociatedPress
Agriculture Commissioner Roger Johnson says trade with Cuba is tougher, not because of Fidel Castro's health but because of higher prices.
The rising prices of farm commodities are good news for farmers but not so good for Cuban buyers, Johnson said.
A trade mission scheduled for last week was postponed about a month ago until next spring.
"The prices have gotten so high," Johnson said. "There aren't as many products available for sale right now at a price that the Cubans want to pay. We are still doing some business there, but it's tougher."
Castro has not been seen publicly since ceding power to his younger brother, Raul, in late July. Johnson said that should not affect trade.
"The Cuban government appears to be reasonably stable. Whether Castro is still around, whether he is back in control or not, I think, is kind of irrelevant," he said.
Johnson said new technicalities placed on trade with Cuba in the past few years have reduced the number of firms willing to sell in the Cuban market. Trade with Cuba in the future rests more on trade policies in this country than on who is leading Cuba, he said.
"I have felt for a long time that this embargo business that we have with Cuba is sort of nonsensical and unproductive," he said.
Cuba has purchased about $20 million of farm products from North Dakota under an existing 18-month agreement. It allows Cuba to purchase more than $10 million more in products before next spring.
Johnson said Cuba lacks the wealth to pay top dollar so looks for bargains in its price range. For instance, Cuba purchased peas bleached by sun or excess rain at a reduced price, he said. The peas have food quality but not the eye appeal needed for the food market in the United States.
The majority of Cuba's purchases from North Dakota have been peas.
Cuba also is interested in North Dakota wheat, but higher wheat prices have made it more difficult for the country to buy into that market, Johnson said.
Cuba has relationships with other trade partners and has become more capitalistic in how it manages its economy, he said.
"That really put their economy on a much sounder footing than what it used to be on," he said. "I just don't see how Castro being there or not will have a major impact on how they do business."
Posted in State-and-regional on Tuesday, December 19, 2006 6:00 pm Updated: 9:55 am.
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