US President George W Bush has restored duty-free access of some goods from India and Pakistan to US markets.
President Bush says both the countries have made progress on intellectual property rights
Mr Bush said he restored the trade benefit because the two countries had made progress on intellectual property and worker rights.
The list of goods was not made available by the White House.
The US has been strengthening trade and defence ties with India, while Pakistan is a key ally in its war against terrorism.
Mr Bush said that he had made the decision after reviewing the steps taken by Delhi and Islamabad.
"I have determined that India has made progress in providing adequate and effective protection of intellectual property rights," he said.
"Accordingly, I have determined to terminate the suspension of India's duty-free treatment for certain articles," he said.
Mr Bush said that Pakistan was taking steps to improve its workers rights.
"I have determined that Pakistan has taken or is taking steps to afford workers in that country internationally recognised worker rights," he said.
"Accordingly, I have determined to restore Pakistan's eligibility for certain articles for preferential treatment."
In 2001 the United States lifted sanctions imposed on India after its 1998 nuclear tests.
The US also lifted all the sanctions it had imposed against Pakistan since 1990 for its testing of nuclear weapons.