That actually is the crux and the meaning of Passover. HaShem chose us, redeemed “HIS” firstborn son, from among the others. We are “racists” in a way, because we believe in this Torah principle. However, our believing in our superiority will not (and should not) cause us to act inferior, mean, hurtful, harmful towards our neighbors. We are busy enough with ourself, we have no need, nor want to malign others. We are separate, yes, completely separate ואבדיל אתכם מן העמים להיות לי, but we are bidden to act gracefully towards our neighbors.
With our own, we are bidden all the mitzvohs bein adam lachaveiro, many steps above and beyond the “normal”, accepted civility in society.. To our neighbors we act fair.. and we do not seek to harm them.