U.S. Agribusiness Peddles to the Proletariat in Cuba

HAVANA, Sept. 26, 2002 — Capitalism and Communism rubbed shoulders today inside a rambling exhibition hall in a suburb of Havana, where Fidel Castro and nearly 300 American companies set aside four decades of estrangement to kick off the largest American trade show ever on this impoverished island.

As Mr. Castro meandered through the hall, sipping red wine from California, feeding baby bison from the Midwest and chatting with vendors, American companies hawked everything from M&M's and Sara Lee cake to soy burgers in hope of bringing home new business.

At the very least, these farmers and agribusiness giants — a powerful bloc that has chipped away at a 40-year embargo and persuaded Congress to funnel billions of dollars to the industry — hope for a public relations victory by showing that one can trade with Cuba, a nearby market with 11 million people to feed.

The scene in the exhibition hall seemed strangely dissonant. Men dressed like M&M's and cans of Spam drifted past workers who noshed, happily and greedily, on the snacks and drinks offered at the booths. There were boxes of corn flakes, tubs of chocolate ice cream, slices of creamy cake, sausages, cheese, bacon and thick roast beef, all of it a feast to Cuban eyes.

"It is all very, very good," chuckled Benito Barzaga, a worker at the exhibition, a glass of free wine in his hand. "Especially the meat. Sheesh."

He was among the few Cubans allowed to see the show, to which access was restricted to selected officials from industries like the hotel trade that might buy the products.

The show was authorized by the United States government under a two-year-old law that permits American companies to export food and agricultural products to Cuba so long as the sales are made in cash. Sales from the United States to Cuba are still miniscule, but last year they jumped substantially, and this year Cuba is expected to make $135 million in purchases. President Bush opposes lifting the trade embargo before Mr. Castro embraces democracy, and members of his administration have criticized the show.

To underscore the importance of the event, Mr. Castro dropped his usual antipathy toward the United States, donned a navy blue, pin-striped suit and attended the show.

"We simply want to have fair trade, a fair exchange that bears in mind the interests of both parties," Mr. Castro said in a rambling, impromptu speech at an afternoon news conference. "There is only one good basis for lasting, serious trade — that both parties benefit."

Gesticulating forcefully with his index finger, Mr. Castro explained that trade was not always about profit, something that might come as a surprise to the vendors in the hall. Instead, he remarked, it is sometimes about building relationships and furthering particular interests.

Mr. Castro lauded "heroic Cuban chickens" who work hard to produce eggs under difficult circumstances. Cuban officials had just signed with Radloe Foods LLC to import 30 million eggs for $1.5 million.

For the Americans in the hall, including a smattering of politicians, the day was as much symbolic as pragmatic. "I never dreamed in my lifetime that I would stand here in the great country of Cuba, and I never dreamed I would see our two flags standing side by side," said Governor Jesse Ventura of Minnesota. "I look forward to this being just the first step in trade relations between the two countries."

Farm state lawmakers and powerful agribusiness executives, including G. Allen Andreas, chief executive of Archer Daniels Midland , who helped inaugurate the show, have pushed hard to ease trade restrictions, arguing that farmers and corporations need access to more markets.

In 1990, they succeeded in persuading Congress to permit the sale of food and agricultural products to Cuba, despite the opposition of Cuban-Americans and influential Republicans, who argued that the money only helped prop up Mr. Castro. But opponents won a major concession: the sales must be in cash to protect the United States from Cuba's bad credit rating and its tendency to default on loans to other countries.

At first, Mr. Castro opposed the law, saying it was too restrictive. Last year, after a devastating hurricane and a precipitous drop in tourism, he changed his mind. Food and grain trickled into Cuba.

In 2000, Cuba rated last among the 228 countries that buy food and agricultural products from the United States. By the end of this year, Cuba is expected to make $165 million in purchases, jumping to 45th place.

The show alone is expected to reap $30 million for farmers and agribusiness executives, who are here to sign contracts with Alimport, the Cuban government agency in charge of imports. That food will be distributed to hotels, restaurants, schools, hospitals and the military.

"I hope people take home the message that the Cuban market is a fertile area for American companies to do business," said Peter W. Nathan, president of PWN Exhibicon International, which organized the event.

As he petted a bull, Mr. Castro talked to a cattle rancher from Minnesota about how much milk his cows produce and how much feed they require. The Cuban leader, he said, came away impressed. "We could easily increase milk production in Cuba 15 to 20 percent," said Ralph Kaehler, of Kaehler's Homedale Farm Enterprises.

Later Mr. Castro, ringed by security, ambled past stacks of mustard and grape juice and peas, as he shook hands, sampled wine and ate cheese. In his speech later on, he talked about the cornucopia of American products and said Cubans are more than willing to pay premium prices for them because they come from across the Florida Straits. "It's a psychological factor," he said.

The trade show did not roll into Cuba without controversy.

Otto J. Reich, the assistant secretary of state for Western Hemisphere affairs, recently expressed his disappointment with the event, and cautioned Mr. Ventura and others traveling to Cuba to steer clear of the island's "sexual tourism."

Gov. Jeb Bush of Florida wrote a personal letter to Mr. Ventura, asking him not to go to Cuba. But Mr. Ventura said the United States is "not a dictatorship," and he is free to travel to Cuba to help boost business for Minnesota companies.