| | |  Business News | September 2009 
Bills Could Transform US/Cuba Business
 McClatchy-Tribune
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September 28, 2009
 |  | Among the measures are rules that allow Cuban-Americans to make unlimited visits and send an unlimited amount of remittances. |  | | |
When it comes to crafting Cuba policy, Congress has been in the back seat of late. The sweeping new rules released last month that loosen the 49-year-old U.S. embargo against the island came from the executive branch and the Office of Foreign Assets Control.
Among those measures were rules that allow Cuban-Americans to make unlimited visits and send an unlimited amount of remittances.
In addition, the regulations also give U.S. telecommunication companies the green light to offer fiber-optic cable, roaming cellular service, and satellite TV and radio in Cuba. But it's up to Cuba to decide whether it wants to do business with the U.S. companies.
As deep as the changes are, free-trade advocates want more. There are a handful of bills that have been filed that propose completely dismantling the embargo -- though few believe the measures have the political backing to pass.
More realistic, perhaps, are a handful of bills designed to take strategic bites out of the embargo. Whether they will gain traction, only time will tell.
Here are some of the proposals made during the current congressional session that could change the way business is done between the U.S. and Cuba: Freedom to Travel to Cuba Act Sponsor: Sen. Byron Dorgan, D-N.D., and Sen. Michael Enzi, R-Wyo.
Summary: This bill is one of several that propose making it legal for all U.S. citizens to visit Cuba. It also drops travel-related restrictions, including limits on baggage, living expenses and the purchase of personal-use goods on the island.
Impact: Analysts believe this bill, or the House version, which has 160 sponsors, could pass during this congressional session. Many travel experts believe that lifting the travel ban would nearly double the 2.3 million visitors the island receives per year. The promise of broader travel would also spark a rush of tour and cruise operators and revitalize the charter industry. For business "this is the bill that outweighs all others," said Cuba trade advocate Kirby Jones.
By allowing executives from all industries to meet their counterparts on the island, it would deepen ties and could be a boon for exporters.
Western Hemisphere Energy Security Act of 2009 Sponsor: Rep. Jeff Flake, R-Ariz.
Summary: This House bill, along with a more extensive Senate bill, would allow U.S. companies to explore and drill for oil off the coast of Cuba. In particular, it would allow companies to export equipment necessary for exploration and extraction without a special license. Just as important, it would also make it legal to send the oil back to the United States.
Impact: The U.S. Geological Survey estimates there are 4.6 billion barrels of untapped oil off northern Cuba. With some deposits just 50 miles off Florida's coast, U.S. energy companies are eager to have a crack at them. Opening up the U.S. market to Cuban oil could also light a fire under some of the international firms that are already exploring in the region but have few local markets to supply.
Agricultural Export Facilitation Act of 2009 Sponsor: Rep. Jerry Moran, R-Kan.
Summary: This bill, along with other similar pieces of legislation, would allow Cuban financial institutions to make direct transfers to U.S. banks to pay for agricultural commodities, medicine and medical devices.
Impact: U.S. farmers and pharmaceutical companies are currently allowed to export these items under existing carve-outs to the embargo. However, trade has been stifled by rules that require Cuba to pay for U.S. imports in advance and send the funds through third-country banks. This bill would streamline the process, strip away transaction costs and potentially boost U.S. exports.
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