Talks to create the world's biggest free trade area have been set in motion by leaders from 34 American countries at the end of their summit in the Chilean capital, Santiago.

But the BBC's South America correspondent, Richard Collings, said little real progress was made on trade issues and the meeting was dominated by other more pressing regional issues - the fight against drugs and poverty and the absence of Cuba from the gathering.

The countries did endorse a schedule leading to the creation of a pan-American free trade area by the year 2005. But critics say there have been strong words for years and little action.

The most significant agreement of the summit was on the battle against drug trafficking. A new organisation will be set up to judge each country's efforts. Education was also given more support - with the World Bank promising an extra $1bn to help raise standards.

The final Santiago declaration made no mention of whether Cuba would be brought into discussions over regional integration despite pressure from Canada and several Caribbean nations to force a common position on the issue.

In his closing remarks, United States President Bill Clinton said the Americas had witnessed what he described as a revolution of peace and prosperity over the past few years which could lift the lives of all its people.

"Here in Santiago we embraced our responsibility to make these historic forces lift the lives of all our people. That is the future we can forge together. It is a future worthy of the new Americas, in a new millennium."