c.2006 Bloomberg News

Dec. 8 (Bloomberg) -- The House of Representatives passed legislation to grant permanent trade relations with Vietnam while extending tariff reductions that benefit Haiti and Andean nations.

The action would preserve trade preferences that are scheduled to expire to the end of the year. Importers and the Bush administration have been pushing to maintain many of the tariff breaks.

The measure, approved on a 212 to 184 vote, now goes to the Senate as Congress seeks to finish its legislative work and adjourn. The trade measure will be paired with tax legislation approved earlier today by the House when it gets to the Senate, where lawmakers from textile-making regions said the measure would cost Americans their jobs.

''It is in our interest to see a strong, growing global economy,'' said Representative David Dreier, chairman of the House Rules Committee, as he addressed lawmakers' concerns about the Haiti and Andean provisions. ''It is also in our best interest to see growth in our hemisphere.''

The legislation would extend for two years a U.S. program that allows $27 billion a year in duty-free imports from poor countries. Broader trade preferences for four Andean nations -- Colombia, Peru, Bolivia and Ecuador -- would also be extended for six months with an additional six months granted if they complete free-trade agreements with the U.S.

Granting Vietnam permanent normal trade relations would clear the way for U.S. companies to benefit from Vietnam's joining the World Trade Organization. The legislation would repeal a Cold War-era measure that links normal trade status to Vietnam's treatment of emigration and human rights. That law must be repealed because it holds out the threat of higher U.S. tariffs for Vietnamese goods, which isn't allowed under WTO rules.

Benefits for Haiti

Provisions also would allow Haiti to export more apparel to the U.S. and reduce duties on a wide variety of products that aren't manufactured in the U.S.

Eight southern Republican senators wrote a letter to House and Senate leaders protesting the Haiti provision.

''While we appreciate the need to assist Haiti,'' wrote the senators, including Elizabeth Dole of North Carolina and Jeff Sessions of Alabama, ''We must also do everything we can to protect our constituents' interests and ultimately their livelihood.''

Dreier, a California Republican, defended the measure, saying people should look at the strength of the U.S. economy and job market.

''I believe this is come in large part due to our string commitment to a global leadership role,'' Dreier said.

''I do understand the concerns the textile industry has had, but the concern should be for the suffering of the poor people of Haiti,'' said Representative Charles Rangel, a New York Democrat who will chair the Ways and Means Committee in the next session.

--With reporting by Ryan Donmoyer in Washington. Editor: Arthur.

To contact the reporter on this story: Jay Newton-Small in Washington at +1-202-624-1871 or jnewtonsmall

bloomberg.net Ryan J. Donmoyer at +1-202-624-1887 or rdonmoyer

bloomberg.net.

To contact the editor responsible for this story: Ken Fireman at +1-202-624-1978 or kfireman1

bloomberg.net

-0- Dec/09/2006 00:47 GMT

12-09-06 0047GMT