• Andean Preferences: At the time of writing it looked virtually certain that the US Andean Trade Preference and Drug Eradication Act (ATPDEA) would be extended by ten months after its scheduled expiry on 29 February. The legislation grants unilateral market access preferences to Bolivia, Colombia, Ecuador and Peru.
Many Republicans hope that the prospect of Colombia losing ATPDEA preferences within a few months will prod Congress into passing the US-Colombia free trade agreement, which the Bush administration strongly supports, but most Democrats oppose due to violence against trade unionists in Colombia (Bridges Year 11 No.7 page 21). Peru is expected to use the extension period for adapting its legislative framework so that the country’s FTA with the US can enter into force before the of the year.
A renewal of ATPDEA preferences for Bolivia and Ecuador beyond the tenmonth extension is uncertain due to opposition by a number of Republicans.
• US Farm Bill: The US Congress is in the midst of negotiations on funding options for a new farm bill that would not reduce spending levels from those authorised under current legislation, due to expire on 15 March.
The House of Representatives and the Senate have already approved slightly divergent versions of the bill. Once the funding is agreed, the two chambers will move on to reconciling the few substantive differences in their respective bills, including an income cap for farmers eligible for subsidy payments. President Bush has threatened to veto whatever bill emerges from the process if it relies on tax hikes to cover costs or does not include greater reforms to the current subsidy regime. In January 2007, the administration proposed new legislation that went well beyond both the House and the Senate versions in that regard (Bridges Year 11 No.1 page 3).