U.S. ambassador Heather Hodges credits Ecuador's efforts to control drug traffic for steps by the U.S. Congress to extend trade preferences due to expire at the end of the year. The U.S. House of Representatives voted to extend preferences on Sept. 29 and the Senate followed suit two days later. In addition to Ecuador, the 6-month extention also applies to Bolivia, Peru and Colombia.

The vote was a blow to oil giant Chevron which had lobbied Congress not to extend preferences to Ecuador in an effort to force the country to drop a $16.3 billion liability law suit. The class action suit stems from environmental damage that Amazonian residents claim were caused two decades earlier by Texaco, a Chevron subsidiary. Chevron had assembled a team of high-profile lobbyiets, including Wayne Berman, John McCain's national finance chairman and former Senator Trent Lott to press the issue.

"This is a major setback to Chevron's effort to undermine the rule of law in Ecuador to avoid cleaning up an environmental disaster," said Steven Donziger, an American legal advisor to the plaintiffs.

The 17-year-old Andean Trade Preferences Act eliminates tariffs for goods coming into the U.S. and is considered crucial for Ecuador.  The U.S. as been Ecuador's largest trading partner for almost two decades. Without the preferences, such industries as seafood, flowers and agriculture, could face taxes of 8% on the cost of shipments.

According to Hodges, Ecuador has proven a reliable partner in the fight against drugs. "Cooperation between the governments of Ecuador and the United States recently has been excellent," she says. "Ecuador is not a a major producer of drugs so its efforts to combat trafficking off its shores and through its territory are especially important."

There has been speculation that the Senate may balk at extending preferences for Bolivia but most international trade experts believe the extention will granted for Ecuador, Colombia and Peru. Despite political differences, says Hodges, the governments of Washington and Quito have continued to work well together on issues of mutural interest.