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HEARD IN THE HUMIDOR

”We ought not to be tracking a few Cuban cigars in a suitcase”

Los Angeles, September 13 – Wouldn’t that be a change!

In another sign that the tightening of the U.S. trade embargo by the Bush Administration is continuing to lose support, the U.S. Senate began work on another bill to change its status.

Senator Byron Dorgan (D-North Dakota) introduced an amendment to a spending bill aimed at reigning in private-sector subcontractors to allow more private travel to Cuba and allow American farm interests to sell more goods there. He contends that the increasing scrutiny over Americans traveling to Cuba is a waste of time and money.

“We ought not to be tracking a few Cuban cigars in a suitcase or someone attempting to take a vacation,” said Dorgan, according to Reuters.

A subcommittee of the Senate Appropriations Committee on Transportation and Treasury Department programs approved the bill and the amendment, sending it on to the full committee. However, its likelihood of eventual passage is not promising.

Although the Appropriations Committee will take up the issue in coming weeks, the Bush Administration is almost sure to try and kill it before it reaches the President’s desk. With Florida a battleground state in November’s election, there’s no chance that the Republicans will do anything to risk losing support from the large Cuban-American community in Dade County.

Looking beyond the end of this year, however, it may be time to reexamine the U.S. embargo, depending on the election results. If Bush wins reelection, the decision on what to do with Cuba may rest with his brother Jeb, the current Florida governor. As the generation which was subjected to the cruelty of the Cuban Revolution retires or passes on, the absolute support of the embargo is weakening among those born in the U.S.

Claims for property damage to U.S. companies and individuals due to the actions of the Cuban government since 1960 is a relatively small $1.85 billion and a buyout option from the U.S. government could absorb most of them. This would clear the way for vastly increased sales of American food, pharmaceuticals and equipment to Cuba, not to mention travel and trade in Cuban goods (including cigars).

It’s a net win for the U.S. and it is not too early to begin exposing Cubans to American goods and the American people to begin shaping attitudes for the post-Fidel future. After all, they already use our money.

More deals:
Our update of our Comparison Price Shopper on our value-rich CigarWire service provided some noteworthy opportunities for the sharp cigar buyer:

• Atlantic Cigar Company has picked up the high-profile Graycliff line. Although expensive, it’s an interesting series, made in the Bahamas under the supervision of Avelino Lara, the long-time supervisor of the Cuban Cohiba brand.

You can now try the Original, Profesionale and new Espresso lines in packs of five, from $58-84. Fans of the powerful Camacho Corojo line will like the blue-labeled Profesionale line with its explosive mix of pepper and spices. Tip: like the Camacho, don’t try the Profesionale on an empty stomach!

• Philadelphia-based Abner’s World has good values on the widely-admired Romeo y Julieta Vintage series. The perfectly-sized No. 2 (6 inches by 46 ring) is offered at just $107.95 for a box of 25. Check the CigarWire for the prices on the full line.

More Politics:
The next step in the fight over whether the U.S. Food and Drug Administration should control tobacco is being taken by the Retail Tobacco Dealers of America (RTDA), the trade group which most closely represents the cigar and pipe industries.

In a letter to the members of the Congressional Conference Committee which will take up the issue in trying to reconcile competing House and Senate versions of legislation, new RTDA Executive Director Joe Rowe urged rejection of the Senate version of the bill which would provide FDA control.

“The proposed FDA authority to subject retail tobacco retailers to the same regulatory standards as manufacturers is unfair and impractical,” said Rowe. “It will change the nature of the retail tobacco business to the point where retailers will be forced to close their stores because of excessive administrative and compliance costs.”

If you speak with retail tobacco store owners, this is not an idle prediction. Beyond the normal business costs of rent, costs of inventory, staff and insurance, punishing tobacco taxes already make store cash flow a nightmare and FDA regulations will only increase the burden.

To be successful, the cigar and pipe trade need to separate themselves from the cigarette and smokeless side of tobacco. The successful e-mail campaign to congressional offices last month and the RTDA’s newest letter are steps in the right direction.
~ Rich Perelman

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