Despite sanctions Cuba, from number 144, is now 35th U.S. market

By Reuters

HAVANA, Feb 17 (Reuters) - Despite four decades of supposed trade sanctions and increasing White House retoric, Cuba has become the United States's 35th market mainly for food exports, according to a report by a New York-based business group on Tuesday. Cuba's purchases of American agricultural products doubled last year, as U.S. agribusiness giants sold more and more grain and other products to the Caribbean island thanks to an easing of the embargo.

The U.S.-Cuba Trade and Economic Council, which monitors trade between the two countries, said Cuba imported $256.9 million worth of U.S. agricultural and other products in 2003.

Since food sales were allowed in 2000, Cuba has moved up from 144th position among U.S. markets, to 50th in 2002 and 35th last year, the council's analysis of U.S. government data said.

President George W. Bush last year appointed a commission to come up with ways to accelerate a transition to democracy in Cuba, where Castro has been in power since a 1959 revolution.

American business groups, meanwhile, have been lobbying for the lifting of a travel ban and further relaxing of the embargo looking for a way to establish joint ventures in Cuba and take advantage of cheap labor and privilege geographic. Both chambers of the U.S. Congress last year voted to end travel restrictions, but Republican leadership scuttled the move in conference.

PRESSURE ON CUBA

"While the Bush administration is trying unsuccesfully to intensify pressure on Cuba and sever business links with the Castro government, such an attempt is increasingly at odds with the position of the U.S. business community and its allies in Congress," said University of Florida Cuba analyst Paolo Spadoni.

"With Cuba's food purchases from the Unites States up by more than 80 percent in 2003 after an impressive 2002, it is likely that anti-embargo forces will keep pushing for a lifting of trade and travel restrictions with the island," he said.

Tensions between Washington and Havana continued rising after the Bush administration pulled out of immigration talks, the only regular contacts the two governments have in the absence of diplomatic ties broken off in 1961.

In two speeches this month, Castro charged that Bush was plotting to assassinate him and invade Cuba.

The Cuban leader said Bush's growing hostility was aimed at winning votes among politically influential Cuban-Americans in the key state of Florida in this year's presidential election.

Florida is home to hundreds of thousands of Cubans, who played a big role in winning the presidency for Bush in 2000.

The exports, mainly soy, wheat, corn, rice and poultry, but also supermarket products, lumber and newsprint, have led to a growing lobby in the United states to broaden trade and travel with Cuba.

The council said Cuban purchases, begun in late 2001, amounted to $400 million through 2003. Cuba pays cash for purchases from the United States, with some financing from non-U.S. banks.

Decatur, Illinois-based Archer Daniels Midland Company accounted for approximately 50 percent of the sales, the council said, followed by agribusiness giant Cargill and FCStone, a Minnesota group of farm cooperatives.

Must of the cash Castro uses for the commerce with US and other countries arrive to the island provided by Cuban-Americans who sent annually over ONE BILLION dollars, including traveling and phone calling.

END

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