The extension provides just enough time for flower exporters in Colombia to fill U.S. orders for the Feb. 14 Valentine's Day holiday without being hit by tariffs.
But "the exclusion of the Generalized System of Preferences (GSP) from the package means that this important program will lapse on December 31, hurting American consumers and businesses as well as workers and farmers in many of the world's poorer countries," U.S. Trade Representative Ron Kirk said.
The fate of the Andean Trade Preferences Act and the much larger GSP program has been up in the air for weeks.
GSP provides duty-free treatment for about 4,800 goods produced in developing countries to help them create jobs.
Its pending expiration means the United States will at least temporarily begin collecting duties on those imports starting Jan. 1.
Alabama Senator Jeff Sessions had blocked Senate action on a bill renewing both programs for 18 months because of a duty waiver Bangladesh receives for sleeping bags.
The Republican said the GSP waiver threatens to shut down a sleeping bag factory in his state.
He has pushed for a 9 percent duty on imports from Bangladesh, the same as China is required to pay.
Senators, just before adjourning for the year, worked out a compromise bill to extend the Andean trade benefits for six weeks. The House of Representatives then quickly approved the measure as one of its final acts of 2010.
The short-term fix also renews Trade Adjustment Assistance for six weeks. That program provides funding to retrain workers who have lost their job because of trade competition.
Colombia, recently hit by massive flooding that has affected about 2 million people, lobbied hard for an extension of the Andean Trade Preferences Act.
"We hope that the administration and Congress continue to open the door toward a stronger, more dynamic trade relationship, through the approval of a longer extension for ATPA, and the subsequent approval of the FTA (free trade agreement) between both countries," Colombian Ambassador Gabriel Silva said in a statement.
Supporters promised to work in early 2011 for renewal of the GSP program and a longer extension of the Andean trade benefits and U.S. worker retraining program. (Reuters)
