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Abstract

For many years, the United States has blocked trade with Cuba, but the situation has recently changed. The Trade Sanctions Reform and Export Enhancement Act of 2000 loosened U.S. sanctions on agricultural exports to Cuba, allowing Cuba to buy from the United States using cash but not credit. The objectives of this study are to analyze Cuban agricultural production and trade and to estimate potential agricultural trade flows that could occur between the United States and Cuba if the embargo was completely lifted. The effects of various increases in Cuban GDP on Cuban import demand are also analyzed. Cuba could be a significant market for U.S. exports of wheat, wheat flour, rice, corn, pulses, poultry, and dairy products, while the United States would likely import sugar, citrus, and tobacco products from Cuba.

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