Date: February 14, 2008

Author: Mark Drajem

Source: Bloomberg News 

A House panel voted to extend expiring trade preferences that allow Colombia, Peru, Ecuador and Bolivia to send most products to the U.S. duty-free.

The extension, through the end of 2008, was approved without opposition by the House Ways and Means Committee.

``This extension will help build on the successful Andean trade preference program and further our efforts to promote stronger economic ties between these countries and our nation,'' said Representative Charles Rangel, the panel's chairman.

The vote eases pressure on lawmakers to take up a divisive free-trade agreement with Colombia. Congress has approved a free-trade deal with Peru, which hasn't yet gone into effect.

The full House and Senate must vote on the trade preferences measure, which the Bush administration supports. The House will vote on the measure the week after next, a committee statement said.

The Andean preferences are scheduled to expire at the end of February, after Congress passed similar short-term extensions in each of the last two years.

Some Republicans, such as California Representative Wally Herger, have urged Congress to pass the free-trade agreements, which would also open those nations to more U.S. exports, instead of extending the Andean preferences.

``While extending the Andean preferences will continue to provide important economic benefits to Colombia, it does not provide meaningful market access to U.S. companies,'' Herger said today.

Iowa Senator Charles Grassley, the top Republican on the Senate Finance Committee, has complained that Ecuador and Bolivia don't deserve to keep their preferences because they haven't agreed to negotiate a free-trade deal or resolve disputes with U.S. investors.

Grassley opposed the original House bill that would have continued the duty-free entry through September 2010. He hasn't taken a position on the bill passed today, spokeswoman Jill Gerber said.