Bush signs 10-month Andean trade benefit extension

WASHINGTON (Reuters) - President George W. Bush signed a bill on Friday to extend longstanding trade benefits for Andean nations for 10 more months and pressed again for approval of a free trade pact with Colombia.

White House spokesman Dana Perino also warned Bolivia and Ecuador could lose their trade benefits because of actions those governments have taken, "including with with respect to the treatment of U.S. investors."

The Senate approved the extension on Thursday, one day after the House of Representatives gave its approval.

The Andean trade preference program dates back to the early 1990s and allows the four countries to export most of their goods to U.S. market without paying duties.

It is part of U.S. efforts to discourage cocaine production in the Andean region by providing other job opportunities.

The program was set to expire on Friday for the third time in a little more than a year because of jostling between the White House and Congress over trade with the region.

The White House sees the latest extension as "a bridge" to win congressional approval of a free trade agreement with Colombia and to implement a free trade pact with Peru that Congress approved last year.

However, House Democratic leaders have said they cannot support the Colombia agreement until that country shows more progress on reducing violence against trade unionists and putting murderers in jail.

Meanwhile, some Republican lawmakers want to examine whether to continue trade preferences for Ecuador and Bolivia because of what they view as an unfriendly environment for U.S. business investors.

"We expect to see significant progress on these areas of concern during the 10-month extension period, and look forward to engaging Congress and these governments in discussions regarding their continued eligibility under this program," Perino said in a statement.