Cuba dominates the Caribbean in terms of land area, population,
and agricultural production. The ongoing U.S. embargo now prevents
Cuba from having much impact on intra-American trade. If the embargo
were lifted, however, U.S. exports to Cuba could rival or exceed
those to the rest of the Caribbean. Cuban exports to the United
States could compete with U.S. producers, particularly in Florida,
for some fruit and vegetable products. Reopening of U.S.-Cuban trade
could provide markets and foreign exchange to spur Cuban economic
growth to significantly higher levels.
Cuba began to restructure its economy in the early 1990s in response
to the economic crisis that followed the elimination of subsidies
from the former Soviet Union. The crisis forced Cuba to move toward
a more open economy and more market-oriented trade. The Government
broke up many large state farms, provided farmer incentives to increase
production, and allowed farmers markets where after-quota production
can be sold at free-market prices. If its economy continues to restructure,
Cuba could become an increasingly important agricultural importer
and exporter.
Cuba has an ideal climate and land resources for citrus and tropical
fruit production. Fruit production has been growing since the 1950s,
spurred by demand from a rapidly growing population. Growth accelerated
in the mid-1990s with new incentives arising from government-sponsored
garden programs, the establishment of private, price-oriented agricultural
markets, and the restructuring of state farms. According to the
Food and Agriculture Organization of the United Nations, tropical
fruit production expanded to 517,000 metric tons in 2002, more than
double its level in 1990.
Urban gardens and larger more intensive gardens on the edges of
cities and towns grow much of Cuba’s tropical fruit. These
gardens use little in the way of purchased chemicals, fertilizers,
and other inputs and depend heavily on labor. Intensive intercropping
with tropical fruit trees provides vegetables critical shade from
the hot tropical sun.
Cuba’s export prospects will likely hinge on access to nearby,
high-income markets like Canada and the United States. If the
U.S.
embargo were lifted, Cuba’s citrus industry would likely
look for markets in the United States for fresh citrus, processed
citrus
products, and citrus byproducts. In turn, Cuba’s citrus industry
could become a market for U.S. exports of technology, citrus rootstock
and other inputs, and capital. U.S.-Cuban partnerships might develop
to partially integrate citrus production, processing, and marketing
for U.S. markets. Initially, Cuba might even look to U.S. sources
for high-quality tropical fruits for Cuba’s growing tourist
market. Eventually, as Cuba’s economy and tropical fruit
sector recover, U.S. consumers could provide opportunities for
an increasingly
competitive Cuban tropical fruit sector.
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