United States Department Of Agriculture (USDA) Reports Updated Republic Of Cuba Usages Of FMD And MAP Programs Authorized In Five-Year 2018 Farm Bill.

Problem? In Six Years, Anemic Uses Of FMD And MAP Programs Defined In 2018 As “Laying The Groundwork” And “Important” By Legislative Advocates.

Approximately Ninety (Or More) Entities Could Have Used FMD And MAP.

Six FMD Usage In Six Years, Some Entities Used More Than Once.

Ten MAP Usage In Six Years, Some Entities Used More Than Once.

Good News: All Applications For FMD Funds Were Used In Cuba.

Bad News: Applications For MAP Funds Usage In Cuba Ranged From 100% To 20%.

Will Cuba FMD And MAP Provisions In 2018 Farm Bill Be Retained In 2023 Farm Bill (Which Remains Unapproved By The 118th United States Congress)?

Thus Far, FMD And MAP Provisions Remain In 2023 Farm Bill Drafts Considered By United States House Of Representatives And United States Senate.

During 2018, legislative advocates maintained that inserting a Market Access Program (MAP) and Foreign Market Development (FMD) provision in H.R. 2, the five-year Agriculture Improvement Act, known as the Farm Bill, signed into law on 20 December 2018 by Donald Trump, 45th President of the United States, was critical to “laying the groundwork” for increasing exports of agricultural commodities and food products to the Republic of Cuba. Statements from members of the United States Congress included: “… an important first step to regaining our presence in Cuba.”

For Fiscal Year 2024, sixty-eight United States-based entities (primarily trade promotion organizations) are identified by the United States Department of Agriculture (USDA) as receiving funding for MAP and twenty entities are identified as receiving funding for FMD. The Fiscal Year 2024 numbers are consistent with years since 2018.

Leading to the enactment of the 2018 Farm Bill, most observers reasonably concluded that legislative advocates- within the United States Congress and organizations in Washington DC and outside of the beltway would have prominently teed-up at least one high-profile applicant to publicize in advance they would use the provision if it became law or at least one high-profile applicant to immediately and publicly request funding when the 2018 Farm Bill became law on 21 December 2018.

NOTE: The global pandemic, COVID-19, commenced in early 2020 and continued to impact travel worldwide through 2022- and in some countries into early 2023. The government of the Republic of Cuba did implement arrival restrictions during these periods; and the United States implemented travel restrictions during these periods. Thus, there were non-marketplace disincentives for commerce-related visits to the Republic of Cuba by delegations from the United States. However, they remained unconstrained 2019, 2022, and 2023.

The most significant impact of an anemic number of MAP/FMD requests and usage in 2018, 2019, 2020, 2021, 2022, 2023, and 2024 is what the lack of interest portends for other legislative efforts in the United States Congress relating to the Republic of Cuba, particularly those focused upon changes to cash-in-advance payment terms for agricultural commodity and food product exports from the United States to the Republic of Cuba required by the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSREEA). The question opponents will ask: “If authorizing MAP/FMD for Cuba was so important, why have so few organizations used it?”

The cash-in-advance terms were supported by United States-based exporters while opposed by United States-based agricultural commodity and food product trade promotion organizations. United States-based exporters were concerned in 2000 and remain concerned in 2024 that with Republic of Cuba government-operated entities maintaining a chronic inability to abide by payment terms other than cash-in-advance, more prudent to retain a perhaps smaller market share with no payment issues rather than a larger market share with endemic, and necessarily publicly-disclosed payment issues.

Link To Complete List Of Products In 2023 Exported From The United States To Cuba

Under the Market Access Program, USDA provides competitive, cost-share assistance to U.S. exporters and agricultural, fish, and forest product trade organizations for international marketing and promotion of U.S. commodities and products. More information about the program and the FY 2024 funding opportunity is available at: https://www.fas.usda.gov/programs/market-access-program-map.

Under the Foreign Market Development Program, USDA partners with nonprofit agricultural and forest product trade associations to build longer-term international demand for U.S. commodities. More information about the program and the FY 2024 funding opportunity is available at: https://www.fas.usda.gov/programs/foreign-market-development-program-fmd.”

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

LINKS To Related Analyses

USDA Accepting Applications For 2024 Export Programs- Cuba Again Authorized For Participation. Since 2018 Farm Bill, FMD And MAP Focus On Cuba Remains Anemic. Will 2024 Be Different? March 20, 2023

Defining Anemic: In Five Years, 2018 Farm Bill USDA Provision For Cuba Had No Use Of FMD And Two Uses Of MAP. Approximately 90 U.S.-Based Entities Could Have Participated. That’s A 2.2% Use Rate. February 03, 2023

Cuba Provision In Farm Bill A Confliction Of Accuracy By Senators Heitkamp & Rubio; OFAC Rule Making Could Be Problematic. June 29, 2018

Members Of U.S. Senate Advocate For Regulatory Changes To Commercial Relationship With Cuba. But, A Significant Part Of What They Seek In Washington Await Decisions In Havana. March 16, 2023

U.S. Ag/Food Exports Increase 35.8% In August 2023; Up 17.9% Year-To-Year. Puddings, Coffee Extract, Cleaning Preparations (US$1.1 Million), Used Excavating Machines, Used Tractors, Car Parts. Oct 5, 2023

Surprises? U.S. Ag/Food Exports To Cuba Increased 37.6% In July; Up 14.8% Year-To-Year. Coin Operated Washing Machines, Refrigerant, Microwave Ovens, Manicure/Pedicure Preps, Vehicles, Tires, Sugar. Sep 20, 2023