Cuba Agricultural Exports Act

Summary: Cuba Agricultural Exports Act This bill amends the Trade Sanctions Reform and Export Enhancement Act of 2000 to exempt from prohibitions against U.S. assistance to Cuba any exports under the market access program, the export credit guarantee program, and the foreign market development cooperator program, including any federal commodity promotion program obligations or expenditures of funds.  This exemption shall not apply if the U.S. assistance recipient would be an entity controlled by the Cuban government, including the armed forces, the Ministry of the Interior, or any subdivision of either governmental entity.  A person subject to U.S. jurisdiction may invest in the development of an agricultural business in Cuba if the Department of State and the Department of Agriculture jointly determine that the agricultural business:   is not controlled by the government of Cuba, including the armed forces, the Ministry of the Interior, or any subdivision of either governmental entity; and  does not traffic in property of persons subject to U.S. jurisdiction which was confiscated by Cuba on or after January 1, 1959.   Certain language limiting financing of agricultural sales to Cuba is repealed.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Cuba Agricultural Exports Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The United States has a long history of providing safe 
        and reliable exports. Close proximity to Cuba further lends 
        itself to low transportation costs for United States goods 
        exported to Cuba. The United States is geographically poised to 
        be a significant trading partner in agricultural commodities. 
        United States and Cuban borders are less than 100 miles apart, 
        meaning lower shipping costs and shorter transit times compared 
        to our competitors.
            (2) Cuba imports approximately 80 percent of its food, with 
        global agricultural exports to Cuba doubling over the past 
        decade to $1.9 billion.
            (3) In 2005, the United States Department of the Treasury 
        published a final rule narrowing the definition of ``cash in 
        advance'' for trading with Cuba, requiring that cash payments 
        must be made before United States products leave United States 
        ports, rather than the more customary payment upon delivery. 
        United States firms are precluded from offering credit to 
        ALIMPORT, a state-owned and state-controlled entity that makes 
        all decisions regarding United States imports to the Cuban 
        market, resulting in declining United States agricultural 
        exports to Cuba. Notably, rice exports fell from a value of $64 
        million in 2004 to essentially $0 in 2009 and subsequent years. 
        Recent action by the Administration reverses that change to the 
        definition of cash in advance, but United States agricultural 
        exporters are still not permitted to extend credit to Cuban 
        buyers, a key disadvantage relative to other exporting nations.
            (4) Despite these restrictions, the United States has been 
        the largest exporter of agricultural goods to Cuba over the 
        last decade. However, the United States slipped to being the 
        second leading exporter of agricultural goods to Cuba in 2013 
        and the third leading exporter of agricultural goods to Cuba in 
        2014.
            (5) While trade opportunities exist, Cuba remains an 
        undemocratic autocracy that oppresses its own people and 
        restricts freedom.
            (6) In addition, there is no opportunity for United States 
        agricultural businesses to trade directly with the Cuban people 
        and there is no Cuban market. At present, there is just one 
        opportunity for United States businesses to trade with Cuba and 
        that is through ALIMPORT, the state-owned and state-controlled 
        entity described in paragraph (3).
            (7) With these cautionary factors in mind, it is important 
        to provide United States farmers and ranchers additional 
        opportunities to benefit from trade with Cuba.

SEC. 3. MODIFICATION OF PROHIBITION ON UNITED STATES ASSISTANCE AND 
              FINANCING FOR CERTAIN EXPORTS TO CUBA UNDER THE TRADE 
              SANCTIONS REFORM AND EXPORT ENHANCEMENT ACT OF 2000.

    (a) Assistance for Exports to Cuba.--Section 908 of the Trade 
Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7207) is 
amended--
            (1) in the section heading, by striking ``and financing'';
            (2) by striking subsection (b);
            (3) in subsection (a)--
                    (A) by redesignating paragraphs (2) and (3) as 
                subsections (b) and (c), respectively, and by moving 
                such subsections, as so redesignated, 2 ems to the 
                left; and
                    (B) by adding at the end of subsection (a) the 
                following:
            ``(2) Exception for certain programs.--
                    ``(A) In general.--Subject to subparagraph (B), 
                paragraph (1) shall not apply with respect to exports 
                to Cuba under section 202 of the Agricultural Trade Act 
                of 1978 (7 U.S.C. 5622), section 203 of the 
                Agricultural Trade Act of 1978 (7 U.S.C. 5623), or 
                section 702 of the Agricultural Trade Act of 1978 (7 
                U.S.C. 5722), including any obligation or expenditure 
                of funds by Federal commodity promotion programs 
                established in accordance with a commodity promotion 
                law, as defined by section 501(a) of the Federal 
                Agriculture Improvement and Reform Act of 1996 (7 
                U.S.C. 7401(a)).
                    ``(B) Restriction on certain recipients.--The 
                exception under subparagraph (A) shall not apply if the 
                recipient of the United States assistance would be an 
                entity controlled by the Government of Cuba, including 
                the Revolutionary Armed Forces of Cuba, the Ministry of 
                the Interior of Cuba, or any subdivision of either 
                governmental entity.'';
            (4) in subsection (b), as so redesignated, by striking 
        ``paragraph (1)'' and inserting ``subsection (a)''; and
            (5) in subsection (c), as so redesignated, by striking 
        ``paragraph (1)'' and inserting ``subsection (a)(1)''.
    (b) Financing of Sales of Agricultural Commodities to Cuba.--
            (1) In general.--Notwithstanding any other provision of law 
        (other than section 908 of the Trade Sanctions Reform and 
        Export Enhancement Act of 2000 (22 U.S.C. 7207), as amended by 
        subsection (a)), a person subject to the jurisdiction of the 
        United States may provide payment or financing terms for sales 
        of agricultural commodities to Cuba or an individual or entity 
        in Cuba.
            (2) Definitions.--In this section:
                    (A) Agricultural commodity.--The term 
                ``agricultural commodity'' has the meaning given the 
                term in section 102 of the Agricultural Trade Act of 
                1978 (7 U.S.C. 5602).
                    (B) Financing.--The term ``financing'' includes any 
                loan or extension of credit.
    (c) Effective Date.--The amendments made by this section take 
effect on the date of the enactment of this Act and apply with respect 
to exports to Cuba on or after such date of enactment.

SEC. 4. AUTHORITY OF PERSONS SUBJECT TO THE JURISDICTION OF THE UNITED 
              STATES TO INVEST WITH RESPECT TO CERTAIN AGRICULTURAL 
              BUSINESS IN CUBA.

    (a) In General.--Notwithstanding any other provision of law, a 
person subject to the jurisdiction of the United States may make an 
investment with respect to the development of an agricultural business 
in Cuba if the Secretary of State and Secretary of Agriculture jointly 
determine that--
            (1) the agricultural business is not controlled by the 
        Government of Cuba, including the Revolutionary Armed Forces of 
        Cuba, the Ministry of the Interior of Cuba, or any subdivision 
        of either governmental entity; and
            (2) the agricultural business does not traffic in property 
        of persons subject to the jurisdiction of the United States 
        which was confiscated by the Cuban Government on or after 
        January 1, 1959.
    (b) Definitions.--In this section:
            (1) Agricultural business.--The term ``agricultural 
        business'' means any entity involved in the production, 
        manufacture, or distribution of agricultural products (as such 
        term is defined in section 207 of the Agricultural Marketing 
        Act of 1946 (7 U.S.C. 1626)).
            (2) Confiscated, cuban government, property, and traffic.--
        The terms ``confiscated'', ``Cuban Government'', ``property'', 
        and ``traffic'' have the meaning given such terms in section 4 
        of the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act 
        of 1996 (22 U.S.C. 6023).
            (3) Investment.--The term ``investment'', with respect to 
        the development of an agricultural business in Cuba, means--
                    (A) entry into a contract involving the purchase of 
                a share of ownership, including an equity interest, in 
                the development of the agricultural business;
                    (B) entry into a contract providing for 
                participation in royalties, earnings, or profits in the 
                development of the agricultural business; or
                    (C) entry into, or performance or financing of, a 
                contract to sell goods, services, or technology 
                relating to the agricultural business.