Screeria nigeria. And later, a look at turkeys role uhamid the violence in syria, iraq and yemen. Wednesday the Senate Agricultural hearing held a hearing. Along with officials from the agriculture, treasury and Commerce Departments. Topics include the opportunities and challenges of expanding trade with the island nation. This is 2 hours and 10 minutes. Okay. Just quiet down. Let it go. Let it go. I was going to say that myself. Sure got quiet. Good morning the committee will come to order. I call this meeting of the Senate Committee on agriculture, nutrition and forestry to order. At the beginning of this congress, i was extremely hopeful that trade would be one area to work to find an agreement. I still maintain that hope. We certainly hope thats the case. Were working very hard in the finance committee to make that happen. Tomorrow, will mark up the promotion bill. That allows our negotiators to garner the best deal possible for american exporters. Tpa is good for agriculture. And i look forward to getting it passed. International trade of american agriculture products is critical. Absolutely critical to the nation. And to the nations economy and our farmers and ranchers. Ive long fought to eliminate barriers to trade, and i think we should continue to work to new opportunities for agriculture products. And that is what were hearing or what we are here about to talk about here as of today. The United States and cuba certainly have a long history full of contention and instability. There is no shortage of opinion from members of congress about the relationship of our two countries. Both present and future. Some are concerned about human rights, rightfully so. Others about socioeconomic ideology. But those concerns are not what this committee will focus on this morning. Today, we are here to discuss the role of agriculture. Opportunities and challenges in cuba. For over 50 years, agriculture exports to the islands have seen many ups and downs, sometimes due to the politics and sometimes due to mother nature. And the tropical storms that she brings. This is not an issue we are going to be able to fix overnight. It will take effort, hard work in addition to bills in congress to truly normalize trade with cuba. The decisions are made regarding increased trade with cuba must be made very carefully. Four months ago the president announced a major shift in u. S. Policy towards cuba. It is my hope that in the future, the president will work with the congress to determine the best path forward. Foreign policy does not happen in a vacuum. We have to take a realistic approach and work out a step by step plan towards lifting the embargo. This is a goal that should include congress, will include congress. Today, we will hear from an impressive panel of experts from the regulators responsible for writing our policies toward cuba to the producers who seek to grow the market for their products. I understand that like myself many of our witnesses here have traveled to cuba to see firsthand what challenges and opportunities do exist. I look forward to hearing about what we might be able to achieve with more trade with cuba but we also need to hear about the difficulties that lie ahead. If we want to be successful in creating a new system of engagement with cuba, were going to have to really put in the work. Agriculture has long been used as a tool not a weapon. A tool for peace and stability. It is my hope that cuba will embrace the practices of free trade, enterprise and commerce so that both countries will gain from increased relations earlier this year, the coalition for cuba was launched. They have shared a statement and Additional Information in support of our work today and i ask it be entered into the record at this point in time without objection. I look forward to hearing from our witnesses. And with that, i recognize our distinguished chairwoman senator stabinaw for any of her remarks. Thank you very much, mr. Chairman. Its great to have an opportunity to talk about this topic. I appreciate the opportunity to work with you on trade opportunities between the United States and cuba and to work with all of the committee. We thank those who are with us the officials and industry representatives testifying today for your part in the process. We look forward to hearing from you. Improving trade with cuba represents not only a great opportunity for American Farmers and ranchers and manufacturers, but a meaningful way to help rebuild trust between our two countries. After more than 50 years of stalemate, its time for a new policy in cuba. When i visited cuba earlier this year with senator leahy who was really one of the senates experts if not the expert i think, on various pieces of cuban culture and economy and so on for so many years. We visited days after the president eased trade restrictions, this is the second time ive had the opportunity to be in cuba with senator leahy and senator flake and others. And, it was very different the second time, being reserved and cautious. Cubans were coming up to us and were very eager to develop a new relationship. It was a very different tenner. But we can only do that with meaningful steps. And americas farmers and ranchers are uniquely positioned to lead the way. And i agree with senator roberts, the agriculture is in a very unique position. In 2014, the u. S. Exported just over 290 million in agricultural goods to cuba, good start. But this is a country only 90 miles off our shore. We can do a lot better than that. Cubas own import agency estimates it will receive approximately 2. 2 billion in u. S. Worth of food and agriculture this year. And we can do even better than that. That type of economic potential deserves a chance to succeed. And is one reason why many of the largest producer groups trade associations, companies from within agriculture have come together to increase engagement. Many on the committee as senator roberts indicated have taken the opportunity to go to cuba in addition to senator leahy, again, who he and his staff have been real leaders in this effort in developing our relationship with cuba. But senator klobuchar boseman, i know working in a bipartisan way, as well and we appreciate your leadership and your efforts. The commitment to democratic ideas and human rights we share as americans are best realized through engagement. And i believe our bedrock principles accompany every single product that our farmers and ranchers send to cuba. Last week, last weeks actions by the president is a step forward in normalizing a relationship. And will test the commitment of the cubans to this process. But even while were making significant progress in rebuilding our relationship, the policies governing trade between our countries are not yet designed to allow a steady flow of goods and services. So mr. Chairman, i look forward to working with you and others on the compete to find a path for u. S. Financial institutions to be able to safely and securely work with cuban purchasers, including extending the lines of credit to look for a broader range of goods and services and supplies we can export to cuba. These measures are not only good for business but they will help cubas agriculture capacity and make the island a better trading partner in the long unare. And i know that working together, we can write the next chapter in the u. S. cuban relationship. Thank you. Thank you, madame chairwoman. I now have the pleasure of introducing a friend and colleague of mine, senator leahy. The undeclared yet accurate king of the, of the dairy policy. And the dairy policy posse who comes in at 11th hour and 59th minute that helps us write a farm bill for a brief remark, sir. You may manage a bill on the floor in your very snappy attire. Thank you, mr. Chairman. I like being with the chairman who knows how to comb his hair. I appreciate that so much. Just let it go, okay . I cant do as well as you do on the tones on your phone, but i commend you for holding this. All seriousness. This is an important hearing. Heres cuba 90 miles from our shores. We have the ability to help them gain control of their own lives but we can also expand American Farmers. Selling their product. Therell be some winners as part of normalizing trade with cuba. We have to temper our hopes and remember cubas economy is in shambles as people are suffering. But i i would note what senator stabinaw said she wouldnt spend time with Agriculture Community there on our last trip. Ive been going to cuba numerous times in the last 20something odd years. This last trip, you saw a huge difference. Seeing american flags in the stores. American flags on the taxis, a lot of the taxis are mid50s automobiles. And they have flags of different countries. Never seen the american flags. Now we saw them. Were not going to have an immediate commercial windfall for american agriculture, but cuba has used our embargo as a phony excuse for its own failed policies. Now, we have a chance to create more efficient and less burdensome opportunities for cubans to buy u. S. Products. Canada and the European Union are there already. Last summer, they were talking about things we produced that they were bringing in from new zealand. And were 90 miles away. So i think that american agricultures often been the bridge in normalizing with countries. This will allow us to do that. But also, let the cuban people see this. Their own government not the United States is blamed for the poverty and dysfunction and repression of the country. And so mr. Chairman, i say that is all really to applaud you for doing this, i think its we can all learn by this. And i look forward to my next trip down there. Well, thank you, sir. I thank you for your comments. And i know you have to manage a bill on the floor. Thats something were doing differently this year. Were actually managing bills. Good luck in that respect. Its nice to go back the old way. Thank you. Welcome to our first panel of witnesses before the committee this morning. The honorable michael skews as undersecretary for agriculture services. Under the secretary, has previously served as the deputy undersecretary for farm and Foreign Agriculture Services as well as secretary of agriculture for the state of delaware. Welcome, mr. Undersecretary, i look forward to your testimony. Chairman roberts, ranking member, members of the committee. Im pleased to come before you today to discuss agriculture trade with cuba. As you know, in december, president obama announced policy to chart a new course with cuba. The measures also seek to expand opportunities for americas farmers and ranchers to sell goods in cuba. In january, the Treasury Department published regulatory changes, including a revised interpretation of the term cash and advance. And authorization for u. S. Banks to establish correspondent accounts at cuban banks. These changes have been sought by members of the u. S. Agricultural community. 15 years ago congress lifted the decades old ban on products to cuba. But despite this opening, u. S. Government agencies including usda remained prohibited from providing export assistance and credit guarantees for exports to cuba. He cant use a single dollar for trade promotion funding where a trade with cuba. These restrictions applied to usdas very successful Market Development programs like the Market Access program and the foreign Market Development program. The policy changes announced by the president are significant. But legislative hurdles remain. Bills have been introduced to further open trade with cuba including legislation sponsored and cosponsored by members of this very committee. Usda stands by ready to offer assistance to congress. If the embargo is removed, we could be poised to become a major agricultural trading partner with cuba. Cuba depends on imports to feed its 11 million citizens. And according to the world food program, cuba imports about 80 of its food. Which means the potential for our producers here is significant. The United States has potentially huge advantages in exporting to cuba. Chief among them is location. Where less than 100 miles away. Meaning lower shipping costs and transit times, especially compared to our current top competitors, brazil and the members of the eu. And fiscal year 2008 u. S. Agriculture exports to cuba reached 658 million. However, by the end of last fiscal year, they had fallen to 300 million. At the same time, the Global Exports to cuba have doubled over the past decade to approximately 2 billion. Right now, the largest u. S. Agricultural exports to cuba, poultry, soybean and corn. Im confident that u. S. Agriculture exporters can capture the market in cuba. But i dont want to minimalize the obstacles. Cuba is a country with limited foreign exchange. Were also behind our foreign competitors in Market Development. Another impediment is cubas import policy requiring all u. S. Imports to be channeled through one state corporation, alanport. The policy changes toward cuba are one example of opportunities to help our farmers and ranchers build on their record agricultural exports. Agricultural exports reached a record 152. 5 billion and supported nearly 1 million american jobs. The potential for u. S. Agricultural exports around the globe is, in fact, considerable. Its critically important that Congress Quickly consider and pass Bipartisan Trade Promotion Authority legislation introduced last week. Tpa will help ensure that americas farmers, ranchers and Food Processors receive the greatest benefit from trade agreements currently being negotiated. In conclusion, there is potential for expanding agricultural exports to cuba over time. Agriculture is served as a bridge to foster cooperation, understanding, and the exchange of ideas among people. I have no doubt that agriculture will play an Important Role as we expand our relationship with the cuban people. Thank you, mr. Chairman, and members of the committee. We thank you, sir. Mr. Matthew boreman currently serves as the Deputy Assistant secretary of commerce for export administration. And this position, mr. Boreman is responsible for implementing the bureau of industry and security controls. On the export of dual use items for National SecurityForeign Policy nonproliferation and short supply reasons. Welcome, mr. Boreman, and i look forward to your testimony. I thank undersecretary for being on time. Just remind the witnesses that most senators can read all all of their staff can read. Feel free to summarize your statements. Thank you mr. Chairman, thank you, its a pleasure to be here. Of course ill address the role the department of commerce with regard to agricultural trade with cuba. As you know in terms of the cuba embargo the Commerce Department is responsible for regulating the export of items to cuba. Treasury Department Responsible for financial transactions, including travel. As you know on december 17th of 2014, the president announced the most significant changes in cuba policy in more than 50 years. As the president noted these changes are intended to create more opportunities for the american and cuban people by increasing commerce, travel and the free flow of information. To implement these changes, we at the department of commerce the bureau of industry and security amend our regulations on january 16th 2015, to expand the authorization for exports and reexports of certain categories of items to cuba. Principally, we expanded the license exceptions available for consumer communication devices, to facilitate the flow of information among cubans and between cubans and the outside world. We expanded the ability for u. S. Exporters to send gift parcels and consolidated packages to cuba without a license, and then we created a new license exception of support for cuban people. So in our system, a license exception means as long as the exporter complies with the conditions of the license exception set out in the regulations, they dont have to come into commerce submit a license application and wait for the government to say yes or no and give them a license. So exporters always feel that license exceptions facileitate trade in whatever topic they cover. The principle focus of the license exception support for cuban people is getting items into the hands of the private sector in cuba. So under that license exception u. S. Persons are now able to export Building Materials for private sector Building Activity in cuba. Theyre able to export items going to the private Agricultural Sector in cuba the agricultural coops, again, without a license. And generally things that go to private sector entrepreneurs. So the focus of that is to make it much easier for the export of items from the United States to the private sector in cuba, including the private Agricultural Sector. The license exception also authorizes the export of items to the internet infrastructure in cuba to again, facilitate communication among the cuban people and between the cubans and the outside world. Youll notice in all of that ive mentioned, theres just a little bit of focus on agriculture, we did not change our primary regulatory process for agricultural exports to cuba. And the reason we didnt, thats pretty well governed by the trade sanctions reform act. So under that trade sanctions reform act, we have an expedited process in place where a u. S. Company that wants to make it agricultural export to cuba comes into commerce we refer it to the state department, we get a position from the state department and give them an answer typically in 12 days. So its an expedited process but it still is a licensing process. And, again, thats largely governed by the requirements of the trade sanctions and reform act. Under that process, exporters can get an online application. As i mentioned, we consult with the state department. We also screen the end users of the license of the agricultural exports to make sure theyre not