MADRID U.S. trade policies have come under fire at a summit of European and Latin American leaders who pledged to step up trade ties and their cooperation in fighting terrorism and drug-trafficking. Friday's Madrid summit of almost 50 European Union, Latin American and Caribbean leaders marked a new step in the closer relationship that the EU has sought with South America, traditionally a sphere of U.S. influence. The summit, only the second of its kind after a ground-breaking meeting in Rio de Janeiro in 1999, resulted in pledges to work to promote trade between the two regions. In a declaration, the leaders also promised to "combat terrorism in all its forms" and to strengthen cooperation to fight "the scourges of illicit drugs and related crimes, corruption and organized crime". Meanwhile, French President Jacques Chirac sharply Criticized what he called U.S. unilateralism on Friday during a summit at which European and Latin American leaders vowed to work more closely together to tackle global problems. Chirac said recent U.S. decisions to slap tariffs on steel imports and to hike farm subsidies would hurt poor countries hardest, including those in Latin America. But Latin American leaders said the European Union also had trade barriers to tear down and some countries were disappointed that they were not offered the kind of free trade deals the EU as forged with Mexico and Chile. Chirac told reporters: "(The U.S.) measures, which can in no way be justified by the general principles on which the World Trade Organization (WTO) was founded, have negative results, especially for developing and emerging countries." He said the U.S. decisions contradicted Washington's pledge to increase development aid to poor countries. Chirac, a staunch defender of the EU's own generous farm subsidies, said the EU leaders "strongly regretted this unilateralism, which runs contrary to a balanced and serene vision of the world".

Europea Commissioner Pascal Lamy also criticized the new U.S. farm bill, saying "it's not good news for developing countries...and it's not good news for world agricultural prices." But Latin American leaders said the EU also had trade barriers to tear down and urged the bloc to open its markets. Europeans have accused U.S. President George W. Bush's administration of acting unilaterally on issues such as trade and the U.S. withdrawal last year from the Kyoto treaty against global warming. On Friday evening, hundreds of anti-globali zation protesters marched peacefully through central Madrid, waving banners and beating drums in support of the world's poor. The summit marked a renewed push for stronger trade ties between the 15-nation EU and Latin America, Reuters reported. Chilean President Ricardo lagos and EU leaders signed a declaration welcoming the completion last month of negotiations on a bilateral trade and political agreement that will free most of their eight billion euros of trade. "Today, the dreams of 15 million Chileans are here with me and I think the hopes of all Latin America are here also," Lagos said.