More US food heads to Cuba

Cuba, which last year took advantage of a modified US trade embargo to buy food products, passing it off as a one-time deal, is to purchase another $32 million (E37m) of food, a US business group said this week.

"Since February 2002 (Cuba's state-run food importer) has contracted for more than 210,000 metric tons of agricultural commodities valued at more than $32 million,''​ the US Cuba Trade and Economic Council said in its weekly publication, Economic Eye on Cuba.

As part of the deal, agribusiness giant Archer Daniels Midland sold Cuba $17.5 million in corn, wheat, soy products and rice for delivery up until May, the council said.

The Caribbean island's importer, Alimport "is also contracting with other United States-based companies for corn, wheat, rice, soy, poultry, and other agricultural commodities,''​ according to the group's weekly report on Cuban-related commercial activity.

After the communist Fidel Castro came to power in Cuba in 1959 the United States imposed an embargo on all trade with Cuba. The US Congress passed legislation in 2000 that altered the trade embargo to allow heavily regulated cash sales of food to the island. In December, following a devastating hurricane, Cuba purchased $35 million in food products from American businesses - the first such deal in about 40 years.

Cuba said the deal was a one-time purchase, designed to replenish its emergency supplies in the wake of Hurricane Michelle. But in early February, President Castro hinted new purchases were under consideration.

"We could still buy for cash an amount similar to that which we have already bought,''​ the Cuban president told journalists.

Cuba's purchase of food from the United States last year, co-operation over the detention of al Qaeda and Taliban captives at the US Naval Base at Guantanamo Bay, and conciliatory statements by Cuban officials have sparked speculation of a thaw in relations after 43 years of mutual hostility.

Around a dozen members of the US Senate and House of Representatives have met with Castro in Havana this year.

Various measures pending in the US Congress would make trade with Cuba easier, in some cases by providing financing or eliminating cumbersome licensing procedures.

With an apparent eye on helping to get those measures passed, Castro said in February: "Next year will depend on whether there is financing or not. Next year, we could double or triple our purchases to around 20 to 25 per cent of our food imports.''​

Cuba imports around $1 billion in food annually, mainly from Asia, Europe, and Canada.