CLINTON, ZEDILLO REACH ANTI-DRUG, TRADE ACCORDS

TEMOZON, Mexico, Feb 15 (Reuters) - U.S.
President Bill Clinton signalled on Monday he would renew Mexico's
status as an ally in the drug war as the two countries announced an
agreement to measure progress in fighting drug-smuggling.

Clinton and Mexican President Ernesto Zedillo met at this opulent 17th
century Yucatan hacienda as part of a 24-hour summit that also
resulted in a flurry of accords on reducing violence along the
1,820-mile (3,000 km) frontier between the two nations and providing
$4 billion to help finance U.S. exports to Mexico.

The two announced an accord to liberalise air transport between their
countries as well as pacts to fight wildfires in Mexico and
tuberculosis on both sides of the border.

But the summit was overshadowed by U.S. debate on whether to add
Mexico to a blacklist of countries not doing their part to stem the
flow of illegal narcotics into the United States, an annual process
viewed in Mexico as one-sided and hostile.

Clinton gave another sign on Monday that his administration planned to
back Mexico's drug efforts, telling reporters:

"Cooperation with Mexico has clearly improved under President
Zedillo's leadership. Neither country has won the drug war. And the
fundamental question is: are we better off fighting it together or
separately?"

Monday's accord establishes so-called Bi-National Performance Measures
of Effectiveness that will monitor both countries' progress in
fighting narcotics demand, production and distribution, as well as
efforts to combat drugs-related corruption and money laundering.

The accord provides "objective markers that the United States and
Mexico can use to measure the success of our cooperative efforts to
reduce the supply and demand of illegal drugs," a White House
statement said.

"They also serve to identify those areas in which both nations can
intensify their counter-drug activities."

Clinton is expected by March 1 to renew Mexico's annual
"certification" as an ally in the drug war despite opposition from
some members of Congress who argue Mexico has lost ground in the
anti-narcotics battle. Decertification could mean a loss of some trade
and economic benefits.

U.S. officials estimate that two-thirds of Colombian cocaine landing
on U.S. streets crosses Mexican territory. Mexico is also a major
producer of marijuana, opium and amphetamines. But Mexican officials
note that U.S. demand for drugs fuels the trafficking.

Other law-enforcement agreements reached on Monday would provide U.S.
training to Mexican police and track chemicals used to make illegal
drugs.