Dorgan: Legal study suggests Administration breaking law on Cuban trade

By DALE HILDEBRANT, Farm & Ranch Guide
Wednesday, December 22, 2004 2:47 PM CST

The Bush Administration may be violating federal law, as they try to slow trade of ag products to Cuba, according to U.S. Sen. Byron Dorgan (D-N.D.).

Dorgan said a legal analysis he requested from the nonpartisan Congressional Research Services (CRS) suggests tactics used by the Administration to block sales to Cuba may be illegal.

In a letter to Treasury Secretary John Snow and Secretary of State Colin Powell, Dorgan called on the Office of Foreign Asset Control (OAFC) to cease its attempts to shut down U.S. agricultural trade with Cuba. He noted federal law, originally sponsored by Dorgan in 2000, allows U.S. agricultural sales to Cuba.

"This CRS report (released Dec. 9, 2004) shows that the Administration's moves to thwart agricultural sales to Cuba aren't just bad policy. They appear to be illegal," Dorgan said. "Secretary Snow needs to immediately cease the campaign to block these sales. The Administration's stance is doing nothing to bring down the regime of Fidel Castro, but is hurting family farmers in North Dakota and across the nation and is flying in the face of federal law."

The law, which was sponsored by Dorgan in 2000, requires Cuban buyers to pay for the agricultural goods before they receive them. Now, the OFAC has re-interpreted the law so that the Cubans have to pay for the products before they even leave the United States. This means that the Cubans have to pay for the products possibly weeks before they arrive, terms that make American products uncompetitive to Cuban buyers.

Since passage of the bill in 2000, agricultural trade with Cuba has expanded until they are now the 21st largest customer for ag products from the U.S.

According to the CRS report, OFAC's new interpretation of the law "appears likely to result in a reduction in trade with Cuba, which appears contrary to the express intent of Congress." Dorgan noted that the law require that any restrictions on trade to Cuba be approved by Congress.

"I urge you to direct officials at the Office of Foreign Assets Control to stop their efforts to hinder trade with Cuba so that U.S. farmers and ranchers can continue selling their agricultural products to that nation," Dorgan wrote in his letter.

Phone calls by Farm & Ranch Guide to the Office of Foreign Assets Control seeking a response to Dorgan's charges were not returned.

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