Typically when we discuss U.S. Sanctions programs on this blog, the focus is on the effects of sanctions regulations on companies and individuals. However, individual States are also being greatly effected.

Today, the Texas Farm Bureau stated that the easing of the Cuban Sanctions Regulations will lead to an almost 150% increase in agricultural sales from the export of commodities to Cuba by Texas agricultural producers.

Since 2000 Texas agricultural exports to Cuba have averaged around $400 million dollars annually. The Farm Bureau now expects those sales to increase to approximately $1 billion dollars annually.

As I mentioned a few weeks ago on here, Congress has directed the Department of Treasury to promulgate regulations, by general license, authorizing travel related transactions for travel to, or from, or within Cuba for the marketing and sale of agricultural and medical goods. Congress took this action in the Omnibus Appropriations Act of 2009. Therefore, under the new regulations the export of agricultural commodities will be significantly easier, because no specific license will be required to permit these exports.

With the economy hurting and the efficacy of these sanctions programs always in question, it will be interesting to see if other sanctions programs will be relaxed to promote the flow of trade into markets where it has been stifled by OFAC’s regulations. I’m sure that this won’t happen overnight, but its something to pay attention to over the next year or so.

For more information on the Cuba General License discussed on this blog please see the Cuba General License.

The Cuba Sanctions Regulations can at times be difficult to navigate. If you intend to provide services to entities operating under the jurisdiction of the Government of Cuba, or plan on traveling to Cuba, I strongly suggest seeking out an attorney to advise you on any liability you may face in engaging in such actions.

If you feel that you may have violated the Cuba Sanctions Regulations please contact the author at 202-280-6370 or by email at ferrari@ferrari-legal.com