ABOUT LATIN AMERICA

The Bush administration is leaving behind so much turmoil and
resentment around the world that President-elect Barack Obama might
be tempted to put off dealing with the nation's extremely sour
relations with Latin America.

That would be shortsighted. There is a unique opportunity to improve
ties with a region that shares key interests and values with the
United States. And given how bad relations are right now, it will not
take much more than good sense and sensitivity to make progress.

For starters, the Obama administration could gain a lot of good will
by supporting more aid, mostly from the International Monetary Fund,
for Latin American countries sideswiped by the financial meltdown.

More than anything, Latin American leaders want to know that
Washington is ready to talk seriously -- rather than just lecture --
on important topics, including drug trafficking, energy policy,
economic integration and immigration.

With Fidel Castro nearly gone, Washington should be testing the
intentions of the new Cuban leadership. We believe lifting the
economic embargo is the best way to do that. It has given Mr. Castro
and his cronies a never-ending excuse for their failures and misdeeds.

During the campaign, Mr. Obama unfortunately agreed with the
incorrect (but politically convenient) proposition that the embargo
gives the United States leverage. Fortunately, he also said he would
start the process of re-engaging Havana -- and opening Cuba to the
winds of change -- by lifting restrictions on travel and remittances
to the island. He should do so quickly.

Declining oil prices, and the declining stature of President Hugo
Chavez of Venezuela, will also make Mr. Obama's task easier.

We have no patience for Mr. Chavez's corrupt and autocratic ways. But
the Bush administration did enormous damage to American credibility
throughout much of the region when it blessed what turned out to be a
failed coup against Mr. Chavez.

The Venezuelan leader has played anti-American sentiments for all
they are worth. And he has spent a chunk of his country's abundant
oil riches to prop up the Castro brothers and finance a wider
anti-American bloc. He no longer has as much cash to spread around.
And his own citizens have lost patience with his failed revolution.

Mr. Chavez's decline also poses some new challenges. The finances of
Cuba as well as Argentina, Nicaragua or Honduras could deteriorate
rapidly if Venezuela decides to cut back its deliveries of cheap oil
and billions in aid. Washington must be prepared to help, either with
its own aid or by rallying support from international lenders.

There will be difficult pills to swallow. For the sake of American
business and American credibility, Congress must pass the trade
agreement with Colombia.

Other steps should come easier. Washington should open a regional
dialogue about the illegal drug trade and prove that it can do its
share by clamping down on the southward flow of weapons and reducing
demand for drugs at home. On energy, eliminating the tariff on
ethanol imports would help reduce dependence on fossil fuels and
greatly improve relations with Brazil.

This country must move forward with immigration reform. It must also
begin regular discussions on migration issues with the countries
sending those migrants. That would do much to improve relations and
find solutions to key problems like human rights abuses against immigrants.

If there is still a question about the need for a new policy for the
region, consider these facts: Latin America provides a third of the
nation's oil imports, most of its immigrants and virtually all of its
cocaine. And, oh yes, it's right next door.