Opportunities in Cuba? Fidel Castro's exit opens doors for Hoosier businesses.

FOR YEARS, THE WORLD has been watching with interest and waiting for the moment when a new Cuban leader would emerge, replacing Fidel Castro after 49 years of continuous rule. Although the United States' relationship with the Republic of Cuba has been marked by tension and opposition--with the United States still maintaining an embargo prohibiting U.S. corporations from doing business with Cuba, except for trade of agricultural and medical goods--there is indeed a very real opportunity to build bridges with the country. That includes opening the doors for many Hoosier businesses, particularly those in the agriculture industry.

In late 2006, I was fortunate to travel with the Congressional Black Caucus to Cuba on a relationship-building and fact-finding visit. During that trip, it became abundantly clear that the people of Cuba are excited about the prospect of doing business with the United States. With the end of Castro's reign, we may be closer to making this a reality

The Cuban government pressed our delegation to ease the credit prohibition of the Trade Sanctions Reform and Export Enhancement Act (TSRA). Under TSRA, the term "payment of cash in advance" established that Cuba is not entitled to financing or credit options when purchasing U.S. agricultural goods. It also prohibits American companies from providing financing terms for authorized sale of agriculture goods to Cuba other than through advance cash payment.

The Cuban government wants trade in all areas and a termination of current limited credit options, all the while, Cuba continues to reduce exports in an effort to increase the motivation of U.S.-based companies and Congress to be more visible in their lobbying efforts for changes in U.S. policy, law and regulations.

With more than 11 million people living in Cuba, there is currently a significant opportunity for Indiana farmers, as Cuba only grows about 30 percent of the food required to feed its people.

According to the U.S. Department of Agriculture, the United States is Cuba's largest supplier of agricultural products, supplying approximately 96 percent of Cuba's rice imports and 70 percent of its poultry meat imports. The U.S.-Cuba Trade and Economic Council reported on Feb. 13, 2007, that the main agricultural product exports from the United States to the Republic of Cuba in recent years were wheat, chicken, corn, rice, soybeans, soybean oil, peas, beans, lentils, pork and powdered milk. In the past few years, Indiana has been one of the country's top 20 states in agricultural trade with Cuba.

While Indiana's agriculture industry has much to gain by less stringent trade relations policies between the United States and Cuba, lifting the embargo could also provide U.S. energy firms billions annually in new revenue. Ending the ban on American travel to Cuba would produce thousands of American jobs and millions of dollars in income for the travel industry, particularly airlines and cruise lines.

While it is still uncertain as to whether or not the embargo will be abandoned or significantly eased in the near future, Indiana businesses looking to grow should not count out Cuba, as there is great opportunity.

Alan Mills is a partner at the law firm of Barnes & Thornburg LLP.