The influential Senate finance committee has given its approval to the Central American Free Trade Agreement but with a narrow margin that is likely to heighten anxiety in the Bush administration.

The committee informally voted 11-9 in favour of the trade pact, which provides US exporters with greater access to Central American markets while locking in the region's existing trade preferences. A formal vote is expected later. The close vote was partly the result of vigorous opposition from representatives of sugar-producing states, who claim that greater access granted by the treaty to Central American sugar will undermine the domestic industry.