Flourishing economic ties with the island nation
The White House’s decision to ease sanctions on Cuba and improve America’s relationship with the Castro regime could reignite Texas’ once flourishing economic ties with the island nation, foreign-policy experts say.
Texas was once a leading exporter to Cuba in a quiet partnership that helped produce hundreds of jobs and millions in revenue for the Lone Star State. The relationship didn’t end with the U.S. embargo decades ago, but thrived until just a few years ago, even as Republicans dominated the Texas political landscape.
Trading with Cuba is legal under the provisions of the Trade Sanctions Reform and Export Enhancement Act of 2000, which allows U.S. businesses to ship a limited amount of products to Cuba for profit.
In 2009, $85 million in agricultural products bound for Cuba left from Texas ports, second only to Louisiana's $241 million, according to Parr Rosson, director of Texas A&M’s Center for North American Studies. In 2008, about $143 million in food and agricultural goods — including wheat, poultry and corn — left from Texas ports. About $45 million of those products were grown and processed here.
The volume of Cuba-bound goods has since tapered off due to changes made by the American and Cuban governments. But the White House’s new Cuban policy announced Wednesday includes allowing people living in America to send more money to people in Cuba, which Rosson said would drive up demand for Texas goods.
“From the economic standing it’s encouraging. It’s going to do a number of things that will boost demand for food products,” Rosson said. “It’s pretty positive for Texas exporters, and I believe this will create an additional demand for our products there and increase our exports.”