UNFRIENDLY NEIGHBOR? -- LATIN AMERICA HAS REASON TO WONDER ABOUT U.S.

AS a Summit of the Americas begins in Chile on Saturday, our hemispheric
neighbors must be wondering just how friendly a neighbor the United States
wants to be.

The primary doubts concern trade, where previous U.S. enthusiasm has
slackened. And a lingering irritant is the continuing dispute over who
bears the blame for the drug trade -- the producers or the users.

At a pan-American summit convened in Miami in 1994, the countries vowed to
begin to set up a Free Trade Area of the Americas, an idea first proposed
by President Bush. The current summit marks the kick-off of serious
negotiations.

In the meantime, however, the U.S. Congress has turned queasy about free
trade, most notably in denying President Clinton the fast-track trade
authority that would enable him to negotiate treaties expeditiously.

In addition, Chile, which was to join the United States, Mexico and Canada
in the North American Free Trade Agreement, has been left waiting at the
door.

This is the wrong direction. The United States should be promoting open
trade, not only for the benefit of Latin American countries, but for the
American economy as well. A third of all U.S. exports are destined for
Latin America, the fastest growing market for U.S. goods.

Trade is not the only issue before the summit. The participants have agreed
on a $1 billion plan for improving education and reducing poverty. Both
would help to strengthen democracy, which in many countries is as unsteady
as a toddler.

Except for Cuba -- not invited to the summit -- all the countries in Latin
America are democratic, at least officially. But in Bolivia, a former
dictator has returned to power, although by election; former strongmen are
leading in Venezuela and Paraguay. The presidents of Argentina and Peru are
seeking constitutional changes to permit them to continue in office.

The United States needs to do what it can to rally the forces of genuine
democracy. It will be more credible as it does so if it drops its arrogant
policy of ``certifying'' countries as making acceptable efforts in the war
on drugs.

Drugs are causing harm in the United States, but they are devastating some
Latin American countries far more tragically. These countries are
understandably offended by a U.S. approach that amounts to saying ``we'll
tell you when you're good enough for us.''

The summit finds Latin America making overall progress toward freedom and
prosperity. Neither stands or falls with the United States alone, but the
countries to the south will do better if they have a good neighbor to the
north.