The U.S. delayed tough new passport rules that would have stifled Cascadia trade and tourism ahead of the 2010 Olympics.

Rules would have required Canadians to carry passports in order to cross the U.S. border beginning Jan. 1, 2008. On Tuesday, U.S. House and Senate negotiators decided to delay the requirement until June 2009. President Bush still needs to approve the delay, which is part of a $35 billion Homeland Security bill that includes fences and other steps along the Mexican border.

The delay is a victory for business groups and the Washington and British Columbia governments, which have been pushing for an alternative security system such as tamper-proof driver’s licenses.