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Trade Bill Extension Approved

On a voice vote, the House has approved a one-year extension of the Andean Trade Preferences program and the Generalized System of Preferences program.  This extends trade benefits for Ecuador, Colombia, Peru and a long list of other developing countries. U.S. duties on thousands of goods would increase if the programs, set to expire Dec. 31, are not extended. The United States imported $13.1 billion worth of goods from Colombia, $9 billion from Ecuador and $5.8 billion from Peru in 2008.

The extension requires the U.S. Trade Representative's Office to report by June 30 on whether the three remaining Andean countries are complying with program criteria. That language is aimed primarily at Ecuador, which is accused by some in the United States of having a corrupt government and biased judiciary and of failing to honor contracts.

Chevron has accused Ecuador of breaching a bilateral investment treaty with the United States by not forcing an Ecuadorian court to dismiss a $27 billion environmental lawsuit against the company. The company argues the treaty entitles it to international arbitration, rather than having to go through local courts. House Minority Leader John Boehner, R-Ohio, says Ecuador got off too lightly in the House bill.