The main element of the package is Argentina’s readmission to the US Generalised System of Preferences (GSP) programme – a measure that is viewed by the Bush administration as being far more voter-friendly than straightforwardly bailing the country out using tax dollars. Argentina lost its GSP status in 1998 in a row over pharmaceutical patent rights.

Despite the President's backing, the proposal is likely to face strong opposition from American producers and their allies when it goes before Congress for approval. A major trade package for Pakistan, a U.S. ally in the war on terrorism, was drastically scaled back earlier this year following strong opposition from US textile producers. A final decision on the Argentine concessions is expected from Congress by Jan 31, 2003.