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US lawmakers agree on 1-year trade benefit renewal

Published 12/11/2009, 05:45 PM
Updated 12/11/2009, 05:48 PM

WASHINGTON, Dec 10 (Reuters) - The U.S. Congress moved closer on Friday to approving an extension of soon-to-expire trade benefits for a long list of developing countries, including Colombia, Peru and Ecuador.

Senior Democrats on the House of Representatives Ways and Means Committee introduced a bill to extend both the U.S. Generalized System of Preferences (GSP) and a separate program for three countries in the Andean region for one year.

That followed talks with Ways and Means Republicans and Democratic and Republican leaders of the Senate Finance Committee, which also has jurisdiction over trade.

The House is expected to pass the package next week and send it to the Senate for final approval before lawmakers adjourn for the holidays, a congressional aide said.

Both programs are set to expire Dec 31.

The GSP program gives 131 developing countries preferential access to the United States by waiving duties on nearly 3,500 goods. Forty-four of the world's poorest countries receive duty-free access for an additional 1,400 goods.

The program dates to 1974. But in recent years, Congress has approved only one- or two-year extensions. The Andean program has also received only short renewals in recent years.

Congress is expected to conduct a more comprehensive review of trade benefit programs next year. (Reporting by Doug Palmer; editing by Todd Eastham)

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