12:20 P.M. EDT

PRESIDENT OBAMA:  Good afternoon.  Buenas tardes.  I want to again welcome President Calderón
to the White House.  Michelle and I are delighted to be hosting the President and First Lady
Margarita Zavala and their delegation for this state visit, and we’re looking forward to
returning the hospitality -- the wonderful hospitality that we received in Mexico when we have
our state dinner this evening. 

I’ve often said that in our interconnected world, where nations and peoples are linked like
never before, both the promise and perils of our time are shared.  Nowhere is this clearer than
among the neighbors -- the United States and Mexico.

The trade and tourism between us creates jobs and prosperity for both our peoples.  When a flu
spreads, or an earthquake strikes, or cartels threaten innocent people, it affects lives on
both sides of our common border.  When our neighbors are in need, whether in Honduras or in
Haiti, we respond together.  And when we expand partnerships between our people, it forges
connections that leads to greater prosperity and opportunity for decades to come.

In pursuit of our shared future, I have a true partner in President Calderón.  We’ve worked
together in Mexico City and Guadalajara, in Washington and Pittsburgh, in London and
L’Aquila.  And when he speaks before a joint session of Congress tomorrow, I believe the
American people will see what I see -- they’ll see a leader who is guiding his country
through very difficult times with vision and with courage, and he has been an outstanding
partner to me and an outstanding partner to the United States.       

Indeed, our progress today marks another step forward in a new era of cooperation and
partnership between our countries -- a partnership based on mutual interests, mutual respect
and mutual responsibility.

We agreed to continue working aggressively on our highest economic priority, which is creating
jobs for our people.  Mexico is one of our largest trading partners, with trade that supports
countless jobs here in America and in Mexico.  And because 80 percent of the trade passes over
our land border, we reaffirmed our commitment to a 21st century border that is modern, secure
and efficient.  And we’re directing our governments to develop an action plan to move in this
direction, because our shared border must be an engine, and not a brake, on our economic
growth.

To create jobs and increase our competitiveness in the global economy, we agreed to streamline
regulations and strengthen the protection of intellectual property.  We agreed to continue
working with our G20 partners to encourage that global economic growth is balanced and
sustained, especially as we approach next month’s Toronto summit.  And as the United States
works to increase our exports, and the jobs that come with it, we’ll be working closely with
our partners in Mexico, which is one of the largest markets for American exports.  

To create clean energy jobs and industries of the future, we’re building on a partnership we
launched last year with new initiatives to promote regional renewable energy markets, green
buildings and smart grid technology.  These initiatives will also help us implement the
commitments we made at Copenhagen, especially as we work toward the climate conference in
Cancun later this year.  And let me say that, as a leader in cutting greenhouse gas emissions
and in helping developing countries do the same, Mexico’s leadership under President
Calderón has been and will be critical.

For the sake of our shared prosperity and security, we discussed the need for immigration that
is orderly and safe, and we acknowledged that both our countries have responsibilities. 
President Calderón is working hard to create jobs so that more Mexicans see a future of
opportunity in their country. 

To fix our broken immigration system, I reaffirmed my deep commitment to working with Congress
in a bipartisan way to pass comprehensive immigration reform.  And comprehensive reform means
accountability for everybody:  government that is accountable for securing the border;
businesses being held accountable when they exploit workers; people who break the law by
breaching our borders being held accountable by paying taxes and a penalty and getting right
with the law before they can earn their citizenship.  We’ve been working hard to get this
done.  There’s a strong proposal in the Senate, based on a bipartisan framework, and it can
and should move forward.

We also discussed the new law in Arizona, which is a misdirected effort -- a misdirected
expression of frustration over our broken immigration system, and which has raised concerns in
both our countries.  Today, I want every American to know my administration has devoted
unprecedented resources in personnel and technology to securing our border.  Illegal
immigration is down, not up, and we will continue to do what’s necessary to secure our shared
border.

And I want everyone, American and Mexican, to know my administration is taking a very close
look at the Arizona law.  We’re examining any implications, especially for civil rights. 
Because in the United States of America, no law-abiding person -- be they an American citizen,
a legal immigrant, or a visitor or tourist from Mexico -- should ever be subject to suspicion
simply because of what they look like.

President Calderón and I also reaffirmed our commitment to stand together against the drug
cartels that have unleashed horrific violence in so many communities.  Mr. President, you and
the Mexican people have shown great resolve in a fight for the security and safety of your
country.  And as I’ve pledged to you before, Mexico can count on the United States as a full
partner in this effort. 

As your partner, we’ll give you the support you need to prevail.  Through increased law
enforcement on our side of the border, we’re putting unprecedented pressure on those who
traffic in drugs, guns, and people.  We’re working to stem the southbound flow of American
guns and money, which is why, for the first time, we are now screening 100 percent of
southbound rail cargo. And guided by our new National Drug Control Strategy, we’re bringing
new approaches to reducing the demand for drugs in our country.

As regional partners, the President and I discussed the situation in Honduras and the need for
continued cooperation to support the people of Haiti as they recover and they rebuild.  And as
global partners, and given Mexico’s seat on the U.N. Security Council, we agreed on the need
for Iran to uphold its international obligations or face increased sanctions and pressure,
including U.N. sanctions.  And I’m pleased that we’ve reached an agreement with our
P5-plus-1 partners on a strong resolution that we now have shared with our Security Council
partners. 

Finally, I’m proud that we’re expanding exchanges between our college and university
students and launching a new exchange program for our high school students.  I’d note that it
was a Mexican student at an American university who went on to become the President who stands
next to me today.  And with these exchanges we’ll bring together the next generation of
American and Mexican leaders. 

This is the progress that we’ve made today.  It’s progress that calls to mind a Mexican
proverb that I am told says, “Tell me who you walk with, and I will tell you who you are.” 
Mr. President, the United States is proud to walk with Mexico.  And through our work, we’re
reminded again of who we are -- which is two neighbors, two partners bound by a common vision
of prosperity and security for both our people.

President Calderón.

PRESIDENT CALDERÓN:  (As translated.)  Thank you, President.  
Ladies and gentlemen, members of the media, good afternoon. First of all, I would like to
thank the kind invitation of the people and the government of the United States to carry out
this visit.  And I am the bearer of a respectful and affectionate greeting of the Mexican
people to this nation, which is our neighbor and friend.  I would like to thank the words and
the hospitality of President Barack Obama.

The United States and Mexico are nations that trade, dialogue, and complement each other
economically and mutually.  We are nations that have a political understanding of the highest
level.  And we are also countries with a fruitful, dynamic, and ties between people,
communities, public and private institutions throughout 3,000 kilometers of border.  Our
relationship is characterized by an honest and open dialogue based on trust, respect, and
co-responsibility. 

As it has been stated by President Obama, this morning we held a broad and fruitful dialogue. 
We’ve reviewed our bilateral relationships -- the problems, the challenges and also the many
opportunities that we face.  We analyzed different proposals and visions on the side of Mexico
and the United States to strengthen North America as a region.

We talked about the relevance of solving our differences and trade problems in the fastest
possible way.  We covered the border topics such as security, migration, and we also examined
initiatives to consolidate our cooperation in global scenarios and global interests. 

I can highlight here that the areas where we agree are broader than our differences. 
There’s a broad convergence of interest.  And this is not only given to the fact that we
share common goals, but there is a will in both of us to turn the fact of being neighbors into
a partnership that will act as a leveler for shared development.

Fortunately, the serious economic global crisis is giving up.  This opens up a window of
opportunity for Canada, the United States and Mexico to re-position Mexico and North America as
a vigorous region -- competitive and prosperous, capable of generating more and better jobs; a
region that will be attractive for investments, trade exchange and tourism, with great
perspectives facing the future.

Together, we should increase our exporting capacity in a contest of growing competitiveness
among different regions of the world.  We talked about the different obstacles that are there
for complying with transportation obligations that have been established at NAFTA, a situation
that impacts jobs, companies and consumers in Mexico and in the United States.  And we shall
work in order to achieve a quick solution with a constructive, creative solution in the long
term in this and many other areas.  
As the President has stated, we gave special attention to the border matters.  The border is
not only a place of encounter for both our nations, but it’s also an area of opportunity for
our aspirations that we share regarding development.  For this we will allocate more resources
for the border infrastructure in order that it will be at the height of the needs of our
economies and communities, and that it will benefit both sides of the border.  We will
strengthen the coordination among the government officials on both sides of the border to
reinforce security.

We want to make this quite clear:  We, both countries, want to have a safe border, a safe
border for our people.  We agreed upon the urgency to reinforce the actions to stop the flow of
drugs, weapons, and cash.  And for this we will work with full abidance to the legislations and
jurisdictions of each country in a co-responsible way.

In reference to the migratory issue, I acknowledge the sensitivity and the commitment of
President Obama to look for a comprehensive solution that will be respectful of the rights of
the individual and will be adjusting itself in a realistic way to the needs of both our
economies.  We talked openly about this and other issues. 

We identified that the economies of our countries are clearly complementing each other, and
when we -- integrating them, they are a powerful tool to bring productivity and competitiveness
up within the whole region.  Greater competitiveness in North America means more jobs and
better living conditions for the people of the United States and for the people of Mexico.

In Mexico, we are and will continue being respectful of the internal policies of the United
States and its legitimate right to establish in accordance to its Constitution whatever laws it
approves.  But we will retain our firm rejection to criminalize migration so that people that
work and provide things to this nation will be treated as criminals.  And we oppose firmly the
S.B. 1070 Arizona law given in fair principles that are partial and discriminatory. 

This and other issues were covered during this meeting, which I will dare to say that it’s
historic given the level of understanding and trust that we have reached. 

For the meantime, I would just like to highlight this open and honest and constructive
dialogue that we keep and hold with the government of President Obama and these two countries
that allows me to see the strength and leadership of the President of the United States.

Thank you, President Obama, for your hospitality.  I want to thank all of you for your kind
attention.

Q    Thank you, Mr. President.  President Calderón called again the Arizona law
discriminatory and called it destructive.  Do you agree with him?  What impact do you think the
Arizona law could have on U.S.-Mexico relations, the prospect for immigration reform, and the
opinions of Mexican Americans in this country?  And what actions did you tell President
Calderón that you would  --

PRESIDENT OBAMA:  I think the Arizona law has the potential of being applied in a
discriminatory fashion.  Now, after it was initially passed, the Arizona legislature amended it
and said that this should not be carried out in a discriminatory way.  But I think a fair
reading of the language of the statute indicates that it gives the possibility of individuals
who are deemed suspicious of being illegal immigrants from being harassed or arrested.  And the
judgments that are going to be made in applying this law are troublesome.

What I’ve directed my Justice Department to do is to look very carefully at the language of
this law to see whether it comports both with our core values and existing legal standards, as
well as the fact that the federal government is ultimately the one charged with immigration
policy.  And I expect to get a final report back from the Justice Department soon, at which
point we’ll make some decisions in terms of how we are going to address that law. 

Now, what I’ve also said, though, is that the Arizona law, I think, expresses some of the
frustrations that the American people have had in not fixing a broken immigration system and,
frankly, the failures of the federal government to get this done. I’m sympathetic to those
frustrations; I share those frustrations -- which is why, from the time that I was a U.S.
senator through the time that I ran for President, until now, I have consistently said that
I’m supportive of a comprehensive immigration reform approach.

And I think the majority of American people are open to a comprehensive immigration reform
approach, which would say the following things:  Number one, that the federal government takes
its responsibilities for securing our border seriously.  And as I just stated in my opening
remarks, we have actually put more resources, more personnel on the borders, and illegal
immigration is actually down on the borders, not up.  I know that’s not the perception out
there, but that’s the fact. 

But we haven’t done enough.  So we’ve got a responsibility to create an orderly border,
and that’s something that we have to do not unilaterally, but also working with the Mexican
government -- because there are enormous flows of trade and tourists and people along the
border region; the economies are interdependent; and we’ve got to control the borders, but do
so in a way that does not have an adverse impact on the economies of those regions.

The second thing we’ve got to do is we’ve got to make sure that businesses are following
the rules and are not actively recruiting undocumented workers so that they don’t have to
abide by overtime laws, they don’t have to abide by minimum wage laws, they don’t have to
abide by worker safety laws and otherwise undercut basic worker protections that exist.  And
they have to be held accountable and responsible.

The third thing we have to do is to make sure that those who have come to this country
illegally are held accountable.  And that means they need to pay a fine, they need to pay back
taxes. I believe they should learn English.  I believe that it is important for them to get to
the back of the line and not in the front, but that we create a pathway so that they have an
opportunity, if they are following the rules, following the law, to become legal residents and
ultimately citizens of this country.

Now, that kind of package in which everybody has responsibilities I think is one that can
pass.  And it is one that I am fully supportive of.  And I’ve said this again and again.  And
I think if we get that done, then you will be less likely to see the kinds of measures that we
saw in Arizona.

Here’s the challenge that we have politically.  The political challenge is, is that I have
confidence that I can get the majority of Democrats, both in the House and the Senate, to
support a piece of legislation of the sort that I just described. But I don’t have 60 votes
in the Senate.  I’ve got to have some support from Republicans.  When we made an effort of
this sort a few years ago, it was under the leadership of John McCain and Ted Kennedy.  And
because there was a bipartisan effort, we were actually able to generate a majority of votes in
the Senate.  And we just missed being able to get it done in the House.

If we can re-create that atmosphere -- I don't expect to get every Republican vote, but I need
some help in order to get it done.  And there have been people who have expressed an interest.
But if they're willing to come forward and get a working group and get this moving, I’m
actually confident that we can get it done.  And the American people -- including the people of
Arizona -- are going to prefer that the federal government takes responsibility and does what
it’s supposed to do.

And it’s my job to work with members of Congress to see that happen.  And it’s also my job
to work with the Mexican government to make sure that it happens, because President Calderón
recognizes that he has responsibilities on his side of the border, as well.

And the last point I’ll make on this topic is this:  I think all of us recognize that some
of the pressures with respect to immigration just arise out of economics.  People in Mexico are
looking for opportunity, and they feel that they can make more money here in the United States.
 What we also have to recognize -- and I talked about this with President Calderón -- is every
nation also has the right to secure its borders and make orderly decisions about who comes in
and who comes out. 

And the key here is for us to keep both principles in mind, that people want to find a better
life where they can, and if they have opportunity in America, they're going to want to come
here.  We can’t just try to use force to prevent that.  On the other hand, the United States
has to be able to make determinations about who comes in and who comes out in an orderly
fashion.  And if we are both a nation of laws and a nation of immigrants, then I think we will
not only be true to our core values, but we’re also going to be creating a more prosperous
future for everybody.

Yes.

Q    (Translated.) President Obama, several issues, but not to detour from this same topic, I
would like to know if you have already a strategy planned in regards to the Arizona law? 
Because it is violating the fundamental rights of people.  How are you going to turn around
this trend, President Obama, that is being shown in different states of the United States
against migrants -- this migratory reform that you’re talking about -- to know when it will
be taken to Congress and what’s the scope that it will have?

The second area regarding security, President Obama, I would like to know how do you value the
battle against organized crime that President Calderón is having?  Has this been a success? 
What is it missing?  And following this issue, to know if you have seen that the weapons that
illegally cross from the United States to Mexico are the ones that are used by the organized
crime people in Mexico?  Shouldn’t there be an initiative that will regulate guns as they are
sold?  Is there going to be a ban?

PRESIDENT OBAMA:  -- a pretty comprehensive answer earlier, so I’m just going to take your
second question and that is the issue of security.  This is obviously a shared concern and is
going to require shared effort on the part of both of our nations.  I said the first time I met
President Calderón and have said ever since that I greatly admire his courage, his dedication,
his tenacity in trying to deal with the drug traffickers and cartels that have created such a
public safety crisis in many communities within Mexico. 

As we pointed out, this is not just an issue of the drug trade -- this is an issue of how is
it affecting people’s day-to-day lives within Mexico.  And the Mexican people have an
interest in dealing with this.  And he has stood up consistently because he recognizes that his
foremost job, his most important task as President is to keep the Mexican people safe.

So we are fully supportive of the efforts that he’s been making.  We have had extensive
collaboration over the last several years in making sure that, in a way that respects
Mexico’s sovereignty, we are responsive to whatever requests are made by the Calderón
administration.  To the extent that we can help through the Merida Initiative -- provide
equipment, provide training, provide technologies that can help in these efforts -- we have
done so.  And we will continue to coordinate as effectively as we can with the Calderón
administration to make sure that we deal with this problem. 

Now, as you point out, this is not just a problem in Mexico. It is a problem that the United
States has to address.  And the two things that we have to address -- and I said this when I
was in Mexico, and I will repeat here -- it is absolutely true that U.S. demand for drugs helps
to drive this public safety crisis within Mexico and so we’ve got an obligation not to drive
the demand side of the equation.  And so most recently we’ve put forward our new strategy
that emphasizes not just enforcement, but also prevention, also treatment, so that we can drive
down demand and weaken the grip that these drug cartels have.

The second aspect of this that we have to deal with is the southbound flows from the United
States of both weapons and cash that helps to empower these drug cartels.  And so what I’ve
directed my Department of Homeland Security, ATF, all our various agencies that have
responsibilities in these areas to do is to ramp up our efforts at interdicting these southern
flows. 

And I already mentioned to you, for example, we’ve now instituted a policy where we are
searching 100 percent of rail cargo that’s going south.  That is a significant investment of
law enforcement resources on our part, but it’s the right thing to do.  We want to crack down
on illegal gun dealers who are selling weapons into Mexico.  All those are steps that we are
doing in coordination with the Calderón government, and we will continue to emphasize the
importance not only to Mexico, but also the United States of tackling this problem.

Okay?  Thank you very much, everybody.

END
12:48 P.M. EDT