Hearing of the Senate Finance Committee - United States-Cuba Economic Relations

Federal News Service

HEADLINE: HEARING OF THE SENATE FINANCE COMMITTEE
 
SUBJECT: UNITED STATES-CUBA ECONOMIC RELATIONS
 
CHAIRED BY: SENATOR CHARLES GRASSLEY (R-IA)
 
LOCATION: 215 DIRKSEN SENATE OFFICE BUILDING, WASHINGTON, D.C.

WITNESSES: PANEL ONE: AL LARSON, UNDER SECRETARY, DEPARTMENT OF STATE;
 
GRANT ALDONAS, UNDER SECRETARY, DEPARTMENT OF COMMERCE;
 
PANEL TWO: AMBASSADOR DENNIS HAYS, EXECUTIVE VICE PRESIDENT, CUBAN AMERICAN NATIONAL FOUNDATION;
 
WAYNE S. SMITH, RESIDENT SCHOLAR, AMERICAN ENTERPRISE INSTITUTE;
 
TOM MALINOWSKI, WASHINGTON ADVOCACY DIRECTOR, HUMAN RIGHTS WATCH;
 
PANEL THREE: BILL REINSCH, PRESIDENT, NATIONAL FOREIGN TRADE COUNCIL;
 
RICHARD OWEN, CENEX HARVEST STATES COOPERATIVES, GERALDINE, MONTANA;
 
WILLIAM A. MESSINA, JR., PROFESSOR OF ECONOMICS, UNIVERSITY OF FLORIDA, GAINSVILLE, FLORIDA;
 
PHILIP PETERS, VICE PRESIDENT, LEXINGTON INSTITUTE
 

BODY:
SEN. CHUCK GRASSLEY (R-IA): Let me begin by welcoming our witnesses to today's hearing on "U.S.-Cuba Economic Relations." Today's hearing is on a topic that is currently generating much interest, some of it controversial discussion. U.S. economic policies towards Cuba are specifically designed to isolate and weaken the repressive regime of Fidel Castro.

Some in the Senate now question these policies, pointing out despite four decades of sanctions against the Cuban government, Castro still remains in power. They also contend that U.S. farmers and businesses are losing trade opportunities in Cuba to their counterparts in other countries. Other senators believe that now is not the proper time to change these policies. After all, they say, Castro's repressive government still controls Cuba and, notably, human rights abuses in Cuba have become even more egregious during the past year. My colleagues on this side contend that—when I say "this side," on this side of the argument—contend that lifting trade restrictions will in effect reward Castro for his actions.

Support for easing restrictions on trade is pronounced, as we're going to hear today. In the U.S. agricultural community Cuba is welcomed as a new export market for U.S. agricultural products. As a senator from Iowa, I understand the need for new markets for agricultural products. So consequently over the years I've backed lifting sanctions on a very narrow group of products, farm goods, to Cuba. For example, I supported a provision in the Agricultural Appropriation Bill 2001 that permits the sale of agricultural goods and medical supplies to Cuba.

I also backed a provision in the 2002 Farm Bill to repeal the prohibitions against U.S. private financing of agricultural sales to Cuba, and at the same time that I've worked to expand the trade I've also found it necessary to advocate continued pressure on Castro's regime for democratic change. While I favor easing restrictions on agricultural exports to Cuba, I have to admit that I have questions as to just how much U.S. farmers and ranchers will actually benefit from trade to that country. It's my understanding that Cuba has not always been a good customer.

I look forward to comments from our witnesses who specialize in this area, particularly agriculture, as we address that issue. Moreover, while I'm generally convinced that expanded trade and especially agriculture trade will benefit both the American and Cuban people, the current political situation in Cuba greatly complicates efforts to reach this goal. Castro's brutal disregard for democracy and human rights was clearly demonstrated just this year. Beginning in April, 75 Cuban advocates for freedom were arrested, having summary trials and sentenced to prison. Amnesty International characterized this year's crackdown as the worst since the early days of Castro's regime.

In addition, following a summary trial, three Cubans were executed for commandeering a ferry to the United States. The Senate, of course, quickly condemned Castro's human rights abuses. Yet the question remains as to whether U.S. economic restrictions should be further eased at this time. Undoubtedly, those repressive measures of Castro's of the past few months will influence discussion here in Congress. I am hopeful that today's hearing will make a useful contribution to that debate and we'll start that debate now.

Normally I would defer to Senator Baucus but he will be here later, and so we'll go ahead with our first panel. We have the honorable undersecretary United States Department of State Al Larson with us. He'll start first, and then we'll have Grant Aldonas, a regular attender at a lot of our hearings, from the U.S. Department of Commerce as undersecretary. So we'll start with you, Mr. Larson.