Open trade with Cuba could impact Idaho sugar exports

What could be an historic move for the United States to open trade between Cuba could impact Idahoans, at least when it comes to sugar beet exports.

While sugar cane is one of Cuba’s biggest products, a lot of folks don’t realize sugar beets are one of Idaho’s largest exports.

In fact, according to ISDA website, in 2012 vegetables and preparations raked-in $351.3 million in exports out of the $2.37 billion in exported agricultural commodities across the state, making Idaho third in the nation when it comes to the large number these commodities we send out.

But Idaho Farm Bureau spokesperson John Thompson said there’s no need to worry quite yet.

“As far as a possible trade with Cuba goes, they would have a lot more to gain from our products than we would from theirs,” Thompson said. “As far as sugar goes, I don’t expect there will be a lot to gain from us importing sugar, here.”

Sure, Cuba would most likely produce sugar at a cheaper price than what Idaho farmers could, but Thompson said not only is our product better quality, but sugar beets are one of the only commodities protected under what is called a tariff-rate quota.

This means, companies in the U.S. have to purchase sugar from local sugar producers first, up to a certain quota set by the government which is expected to meet the annual demand.

Thompson said sugar is one of the few commodities that does not receive a government subsidy, so that is why this TRQ protection is in place.

Which, is good news to sugar beet farmers and producers, but not favorable to local companies.

“Because then they could buy cheaper sugar. We would argue that it’s not as high-quality as our sugar, but then those companies could buy cheaper cane sugar from a lot of these South American countries that could beat us up on price,” Thompson added.

But this TRQ protection means you can’t start buying exports from other countries until the domestic quota is met.

Thompson said, generally, the Farm Bureau is a proponent of free and open trade.

“Other nations want to trade with us, they want to be part of our economy, and we have a large population of wealthy consumers here.”

Over the phone, U.S. Senator Jim Risch said both republicans and democrats in both the House and the Senate are against President Barack Obama’s Cuban embargo lift proposal.

“To the left of me is Senator Marco Rubio, whose parents immigrated from Cuba, and sitting to my right is Senator Menendez, a democrat from New Jersey,” Risch said. “They were very angry because they believe he is rewarding this regime in Cuba that really, we should not be doing anything with until they change their ways.”

He said Obama will have a tough time trying to implement anything by executive order since he feels the President will meet Congress with strong opposition.

“Congress is very, very to do that in a very bipartisan way with both republicans and democrats deeply, deeply opposed to trading with that communist country,” he added.

But as far as Idaho ag. prices fare, Thompson said we still need to keep in mind it’s too early to determine if the price of exports will fluctuate if trade between Cuba is opened once again. However, he assures we most likely won’t be seeing any changes to our sugar exports anytime soon.