BILL ANALYSIS
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THIRD READING
Bill No: SJR 36
Author: Cedillo (D), et al
Amended: As introduced
Vote: 21
WITHOUT REFERENCE TO COMMITTEE OR FILE
SUBJECT : Removal of restrictions relating to
agricultural sales to Cuba
SOURCE : Author
DIGEST : This resolution urges the President and the
Congress of the United States to consider and the removal
of commercial, economic, and financial restrictions
relating to agricultural sales to Cuba.
ANALYSIS :
This resolution contains the following legislative
findings:
1. The trade relationship between the United States and
Cuba has long been marked by tension, and further
heightening this conflict is the 50-year-old United
States trade embargo against the island nation, which
remains the most restrictive in modern history. Despite
the trade embargo, the United States is the fifth
largest exporter to Cuba, even though businesses wishing
to sell their products in Cuba have to be approved on a
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case-by-case basis.
2. In 2000, Congress passed the federal Trade Sanctions
Reform and Export Enhancement Act, which allows the
Cuban government to buy United States food and
agricultural products with direct cash payments.
3. Cuba's reliance on United States agriculture is now in
jeopardy because Cuba witnessed significant economic
growth in 2003 and averaged 6.3 percent for the period
2001 to 2006, inclusive, but now Cuba is struggling
economically with the Cuban government forecasting a
modest 1.9 percent growth in 2010, and the value of the
food imported into Cuba from the United States that
totaled $712,000,000 in 2008 declined to $533,000,000 in
2009.
4. California is the top agricultural producer and exporter
in the nation, a position it has held for 50 years, due
to its enormous variety of crops and great growing
conditions, and removal of the trade and financial
restrictions related to the sale of agricultural
products to Cuba increases sales and business
opportunities for the California agriculture industry.
5. California is, therefore, ideally positioned to benefit
from a modification to the financial, investment, and
commercial restrictions related to agricultural sales to
Cuba, which encourages United States workers, farmers,
and businesses to expand to the Cuban market and decide
for themselves what level of risk they are willing to
take in trading with and loaning to Cuba.
6. Rather than limiting Cuba of access to foreign
investors, the United States embargo succeeds only in
driving investments and food supply to competitors in
other countries that have no such restrictions, and the
United States' financial restrictions related to
agricultural sales to Cuba threaten the United States
exporters' advantage in the Cuban food market and
obstruct economic growth and job creation.
This resolution urges the President and the Congress of the
United States to consider the removal of commercial,
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economic, and financial restrictions relating to
agricultural sales to Cuba.
FISCAL EFFECT : Fiscal Com.: No
JJA:do 8/11/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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