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Montevideo, April 24th 2024 - 06:41 UTC

 

 

US-Andean countries trade program extended ten months

Friday, February 15th 2008 - 20:00 UTC
Full article

A United States House of Representatives panel approved Thursday a ten month extension for a trade programme providing reduced tariffs for exports from the four Andean nations of Bolivia, Colombia, Ecuador and Peru.

The Ways and Means Committee voted by voice to extend the Andean Trade Preference Act until the end of the year. The full House is expected to vote on the matter before the act expires on February 28. Congress enacted the program in 1991 with the goal of reducing illegal drug production in the Andean region by promoting legitimate industries. The program has been considered relatively successful in so far it has helped promote industries and jobs in Andean countries, and a strong political lever for Washington. Ways and Means Committee Chairman Charles Rangel, a Democrat, said he had sought a longer-term extension but had agreed to 10 months "to accommodate the range of opinions on the issue of renewal". Republicans balked at a longer extension as part of a strategy of pushing Democrats to bring up legislation approving a bilateral free trade agreement with Colombia. The shorter extension, said Rep. Jim McCrery, top Republican on the committee, would provide the time needed "to continue our dialogue, which I hope will lead to passage of the US-Colombia free trade agreement this year". Supporters of that free trade deal argue that it would require Colombia to lower or eliminate tariffs on US goods. The trade preference act is one-way, lowering duties on products from the Andean nations but not on US products. The US recently approved a free trade agreement with Peru but the Democrat dominated Congress is reluctant to give its blessing to similar accords with Colombia and Panama. Although Colombia is the US staunchest ally in Latinamerica and president Alvaro Uribe has made good use of the US financed Colombia Plan to combat the drug cartels and the cocaine funded guerrilla movements, Democrats are not convinced of the country's human rights track record or its efforts to improve labor legislation and protect union leaders. With Panama the issue is different since the US objects a member of the current Omar Torrijos administration.

Categories: Economy, Latin America.

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