Remarks by President Obama and President Santos of Colombia in Joint Press Conference

Courtyard
Casa de Huespedes
Cartagena, Colombia

4:30 P.M. COT

PRESIDENT SANTOS: (As interpreted.) Good afternoon to you all. I'd like to announce that we have had a bilateral meeting with President Obama and his team. This has been highly productive. Colombia and the U.S. have been successful partners in fighting against drug trafficking, fighting against terrorism, and in defending democracy.

In this meeting we have made even more progress. Our countries have moved from being just good friends and partners to become real allies. We are allies in building a new world order -- the world of the 20th century is behind; it is in the past. Now there is a new international reality and we cannot simply be passive observers of this reality. Only joint work of those who share the ideals of freedom and democracy makes sure of a peaceful transition towards a better world. And we feel that we must work together.

We have talked with President Obama about bilateral problems and world problems, and we have also worked at the Security Council coordinating our positions. And we have been doing this and we will do it at the G20 where we will meet in a few months. And here at the summit, in this Summit of the Americas, we have had very positive results. And I'm not only saying this as president of the summit, but most of the heads of state and government who were present said the same thing. And one of the reasons why it has been so successful was thanks to President Obama, who stayed here for two nights, and we discussed openly and candidly, with respect and cordiality, all problems. Everything was discussed. And that was really appreciated by Latin America and the Caribbean in a very special fashion.

So I'd like to thank you, President Obama. This was part of the success of the summit.

We all have the feeling that there are enormous opportunities to work together in a more integrated fashion. North and South America will be able to find common denominators that will create synergies for the benefit of the North American and Latin American peoples.

In bilateral relations, I think that we have also made headways as never before, and I'd like to thank you, President Obama, for your permanent willingness not only working with Colombia but with Latin America. You said something that touched us, and that was that you did not see Latin America as a problem, or Latin Americans living in the United States as a problem, but the country as a contribution, as a supplement to the dynamics that make the U.S. what they are today. And that has a lot of value. We would like to thank you for this. We would like to thank you, not only as Latin Americans who live south of Rio Grande, but those who live -- the millions of Latin Americans who live in the U.S.

As for bilateral relations, finally, after working together for a long time, the two countries and their delegations, we can announce today that on May 15th, precisely in one month, the new FTA with the U.S. will be enforced -- (applause) -- which means there will be thousands -- millions of jobs created for the U.S. and Colombia. It is a dream we had for a long time. Since I was a minister of commerce 20 years ago, we were dreaming of having free trade with the U.S., and this has become a reality today, here in Cartagena, and right here where not so many years ago, about 10 to 12 years, that Plan Colombia was launched.

We were about to be considered a failed state. And today, thanks to Plan Colombia and thanks to the U.S. and many others, and thanks to you, President Obama, for your permanent support that you have always given us, today we have a very strong democracy that is producing specific results for our people and has been recognized by the world as a whole.

Number two, we also agreed with President Obama to work together so as to help Central American countries in fighting against organized crime and drug trafficking. The experience that we have gathered through Plan Colombia together with the United States is something that we have the obligation of sharing with our brothers in Central America who are going through difficult times. So that is the reason why we have decided to strengthen and improve joint assistance mechanisms for these countries.

Number three, we have agreed to work together so as to ensure energy interconnection with the whole continent. And this is something we discussed during the summit, but it concerns us very specifically here. Both the U.S. and Colombia may contribute to that interconnection. I am dreaming that at some point in time no individual living in the Americas will be out of this interconnection because that will help us a lot in fighting against the poverty and for development.

Number four, we would like to thank the American government for a decision which is that as of now visas given to Colombians will be extended to 10 years -- (applause) -- which is a proof of trust in the countries. And we would like to thank you very much for this not only on behalf of the government, but on behalf of the 46 million Colombians and the millions of Colombians who love to go to the U.S.

And that is why I think that we are strengthening the wonderful relations that we have always had with the United States and with you, personally, President Obama. You have not only an ally but a friend. You can count on us. And let's continue working together. We've been able to attain many goals up to date, and I'm sure that we will be able to be more successful in the future.

So again, on behalf of the 46 million people in Colombia and all Latin Americans, thank you very much. Thank you very much for your interest. Thank you very much for coming to the summit and to this bilateral meeting. I think this has been a very important step forward in trying to work together in the Americas and the U.S. and Colombia. Thank you very much. (Applause.)

PRESIDENT OBAMA: Well, thank you, President Santos, for those warm words. Most of all, thank you and thanks to the First Lady and the people of Colombia and Cartagena for your unbelievable hospitality. This is a beautiful city. And I'm going to do my best to bring Michelle and the girls back to come visit.

This will be remembered as a summit that brought the nations of our hemisphere closer together, and it will be remembered that we advanced the prosperity and the security and dignity of our peoples. And I believe it will be remembered that our progress was made possible in no small part by the outstanding commitment and leadership of President Santos and his team. So, Juan Manuel, muchas gracias.

As I said to my fellow leaders yesterday, there was a time not so long ago when few could have imagined holding a summit like this in Colombia. That we have and that the summit was such a success is a tribute to the remarkable transformation that’s occurred in this nation. There's a level of security that’s not been seen in decades. Citizens are reclaiming their communities. The economy is growing -- as you can see in the skylines of Cartagena and Bogota. Democratic institutions are being strengthened. In Colombia today, there's hope.

And this progress, once unthinkable, is a tribute to Colombian leaders, including President Santos. It's a testament to the extraordinary courage and sacrifices of Colombian security forces and the Colombian people. And now, as conflict begins to recede, this nation is embracing a new task -- consolidating the gains it has won, and building a just and durable peace that unlocks Colombia's incredible potential.

Today, I pledged to President Santos that as Colombia forges its future Colombia will continue to have a strong partner in the United States.

When we met for the first time two years ago, we agreed to take the partnership between our two countries to a new level. This is part of my broader commitment in the Americas to seek partnerships of equality that are based on mutual interest and mutual respect. Here in Colombia and across the region, that’s exactly what we've done. And today, President Santos and I reviewed our progress and, I'm pleased to say, reached agreement on several new initiatives.

First, as has already been mentioned, we're moving ahead with our landmark trade agreement. In our meeting at the White House last year, we approved an action plan to ensure the protection of labor rights. We all know that more work still needs to be done, but we've made significant progress. And as a result, and given the actions taken by President Santos and the Colombian legislature, I can announce that the U.S.-Colombia Free Trade Agreement will enter into force next month on May 15th. (Applause.)

As I said before, this agreement is a win for both our countries. It's a win for the United States by increasing our exports by more than $1 billion, supporting thousands of U.S. jobs and helping to achieve my goal of doubling U.S. exports. It's a win for Colombia by giving you even greater access to the largest market for your exports -- the United States of America. And I'd add that this agreement is a win for our workers and the environment because of the strong protections it has for both -- commitments we are going to fulfill.

So, President Santos, thank you for your partnership in getting this done.

Colombia's economic progress puts this nation on a path to join the ranks of developed nations. President Santos has made it a goal to seek membership in the Organization for Economic Cooperation and Development. And today, I can announce that when Colombia is ready to seek it the United States will strongly support Colombia's candidacy for the OECD. (Applause.) Moreover, we will actively encourage other members of the OECD to join us in supporting Colombia's membership, which would be another symbol of Colombia's transformation.

Alongside our deeper economic cooperation, we're strengthening our security cooperation. The United States has been proud to stand with the Colombian people in their fight against the terrorist insurgency that took the lives of so many innocent civilians. I reaffirmed to President Santos that the United States will continue to stand with Colombia shoulder to shoulder as you work to end this conflict and build a just and lasting peace. And that includes supporting President Santos's very ambitious reform agenda, including reparations for victims and land reform. And this afternoon I look forward to joining President Santos as he presents land titles to two Afro-Colombian communities, advancing the vision of a Colombia that is just and equitable.

As Colombia grows stronger at home, it's increasingly playing a leadership role across the region -- a third area where we're deepening our partnership. Colombia has shared its expertise in security by training police officers in countries from Latin America to Afghanistan. Today, President Santos and I agreed that our two countries will work together to support our partners in Central America as they pursue a regional strategy to improve the security of their citizens.

And this is just one more example of how Colombia is contributing to security and peace beyond its borders, including as a current member of the U.N. Security Council. I want to take this opportunity to salute Colombian leadership, from supporting the recovery in Haiti to supporting sanctions against Iran, to standing up for the rights and freedoms of people in the Middle East and North Africa. And this week in Brazil, we'll join nations from around the world in advancing the open government that empowers citizens and makes governments more accountable.

Finally, I'm very pleased that we're deepening the ties between our peoples. As it now stands, visas for Colombians to visit the United States expire after five years. As was just mentioned, I'm announcing that these visas for Colombians will now be valid for 10 years. And this will make it easier -- (applause) -- this will make it easier for more Colombians to visit and experience the United States, and this is one more very tangible example of Colombia's transformation and the transformation in the relationship between our two countries.

So, again, President Santos, thank you to you for your leadership. Thank you to the people of Cartagena and the people of Colombia for this outstanding summit and your great hospitality, the warmth that you've extended us and the other leaders who gathered here. It makes me very confident about Colombia's future. (Applause.)

PRESIDENT SANTOS: Thank you. Thank you very much.

(As interpreted.) Well, there are some questions. I think -- RCN TV, Juan Carlos, you have a question.

Q    Presidents, good afternoon. President Obama, today at the closing of the Summit of the Americas there was great expectation because you never came up with a document that would reflect a decision, and many people would say that Cuba and the Malvinas issue weren't taken up as they should have. Does this have to do in any way with the electoral environment, the electoral context in the United States?

And to President Santos, today the State Department announced a new security plan for the region. What benefits do you see coming from this plan? Thank you very much.

PRESIDENT OBAMA: Well, first of all, what it reflects is a lack of consensus among those who participated in the summit. The issue of Cuba I've discussed before. Since I came into office, we have made changes to our Cuba policy. We've increased remittances that are permissible from Cuban Americans sending money to their families to help support them back home. We've increased travel by family members to Cuba. And we have discussed in the OAS the pathway whereby Cuba can fully participate in some of these regional forums. But the fact of the matter is, is that Cuba, unlike the other countries that are participating, has not yet moved to democracy, has not yet observed basic human rights.

I am hopeful that a transition begins to take place inside of Cuba. And I assure you that I and the American people will welcome the time when the Cuban people have the freedom to live their lives, choose their leaders, and fully participate in this global economy and international institutions.

We haven't gotten there yet. But as I indicated to President Santos and all the other leaders sitting around the table, we recognize that there may be an opportunity in the coming years, as Cuba begins to look at where it needs to go in order to give its people the kind of prosperity and opportunity that it needs, that it starts loosening up some of the constraints within that country. And that's something that we will welcome.

I'm not somebody who brings to the table here a lot of baggage from the past, and I want to look at all these problems in a new and fresh way. But I also deeply believe in those principles that are contained not just in the OAS charter, but in the United Nations charter -- that respect for individuals, respect for rule of law, respect for human rights that I think is part of the reason that we're seeing an incredible transformation here in Colombia.

And in terms of the Maldives [sic] or the Falklands, whatever your preferred term, our position on this is that we are going to remain neutral. We have good relations with both Argentina and Great Britain, and we are looking forward to them being able to continue to dialogue on this issue. But this is not something that we typically intervene in.

PRESIDENT SANTOS: (As interpreted.) I would just like to repeat something that I said during the press conference this morning -- early this afternoon -- saying that the important thing of the summit is that we openly discussed all issues. This didn’t happen before. There were some issues that garnered agreement, others that didn’t. We reached an agreement on the five fundamental issues that were identified from the very outset, and the discussion on other issues was an open, candid discussion. It was fully respectful and productive, I would say.

And that is why I believe that in the aftermath of this summit we will have a better understanding of these challenges. Some will be solved in the short term; others in the longer term. There are others that we naturally won't be able to resolve. But that is only natural. And summits such as these, where 33 countries participate, each one bringing to the table their own interest, each one bringing their own prism through which they look at things, but the positive thing is that we discuss these issues candidly and productively -- a number of issues that were not even on the table before.

On the issue of security, with the United States we have very close coordination, and perhaps we don’t have this close relationship with any other country in the world. We have learned mutually from each other. They have helped us a great deal. As I said before, Plan Colombia was launched a few years ago, and it's not just the amount of money that was offered through Plan Colombia, it was the quality of the assistance. And to us, that was a very important step. And anything that we can do along that road to improve security in the United States and Colombia and to share our experiences will be more than welcome.

Q    Thank you, both of you. President Obama, following up on my Colombian colleague's question, could you address -- he had referred to the electoral pressures that you face in the United States. Could you address the issue of how big Florida looms in terms of the United States policy towards Cuba?

And I wanted to ask quickly about the issue that has sort of hung over this Summit for the Americans [sic], is the controversy that involved members of the detail that is sworn to protect you. What did you -- were you angry when you heard about this as you came here? And do you feel like there's any -- this is indicative of any broader cultural problem within the Secret Service, such as a leading Republican congressman suggested?

And President Santos -- which President Obama you could also address this as well -- I'm curious as to why you made drug trafficking such a prominent part of this summit when it could be argued that it detracted some from the attention you wanted to bring to the great progress that Colombia has made on economic and security issues. Thank you.

PRESIDENT OBAMA: Well, first of all, my position on Cuba has been consistent. It hasn't wavered before I was elected for President the first time; it didn’t change after I was elected for President; it hasn't changed now. So let me repeat -- separate and apart from whatever electoral concerns you're describing, I want the people of Cuba, like people throughout this hemisphere, to have the opportunity to work, to raise their families, to start a business, to express themselves, to criticize their leaders -- something that we in America take full advantage of -- to replace them if they're not working, which presumably is the aspiration of I think most people throughout Latin America.

And as I indicated in an interview earlier, I am sometimes puzzled by the degree to which countries that themselves have undergone enormous transformations, that have known the oppression of dictatorship, or have found themselves on the wrong side of a ruling elite and have suffered for it -- why we would ignore that same principle here.

But, Jackie, as you know, I tend to be an optimistic person. And it is my hope that as Cuba looks at what's happening in countries like Colombia and Brazil and Chile and throughout the region, they're going to start saying to themselves, maybe there's a new path to take in the 21st century. And when that happens they're going to have a welcome hand extended by the United States of America.

On the Secret Service -- these men and women perform extraordinary service on a day-to-day basis protecting me, my family, U.S. officials. They do very hard work under very stressful circumstances, and almost invariably do an outstanding job. And so I'm very grateful to the work that they do.

What happened here in Colombia is being investigated by the director of the Secret Service. I expect that investigation to be thorough and I expect it to be rigorous. If it turns out that some of the allegations that have been made in the press are confirmed, then of course I'll be angry -- because my attitude with respect to the Secret Service personnel is no different than what I expect out of my delegation that’s sitting here. We're representing the people of the United States. And when we travel to another country, I expect us to observe the highest standards because we're not just representing ourselves, we're here on behalf of our people. And that means that we conduct ourselves with the utmost dignity and probity. And obviously what's been reported doesn’t match up with those standards.

But again, I think I'll wait until the full investigation is completed before I pass final judgment.

The final point I'll make just on the issue you raised with President Santos about the issue of drug trafficking -- I think it is wholly appropriate for us to discuss this issue because Colombia obviously has gone through a wrenching number of years dealing with this issue. It has been successful because of the courage and leadership not only of President Santos and his predecessors, but also because of Colombian security forces.

But you now have a number of countries in the region -- in Central America and in the Caribbean -- that are smaller, that have fewer resources and are starting to feel overwhelmed. And obviously we've been following what's been happening in Mexico and the violence that’s been taking place there as a consequence of these narco-traffickers. So I think it wouldn’t make sense for us not to examine what works and what doesn’t, and to constantly try to refine and ask ourselves, is there something we can do to prevent violence, to weaken these drug traffickers, to make sure that they're not peddling this stuff on our kids and they're not perpetrating violence and corrupting institutions in the region. And I thought it was a good and useful and frank discussion.

As I said a couple of days ago, Jackie, I'm not somebody who believes that legalization is a path to solving this problem. But I do think that we can constantly ask ourselves are there additional steps we can take to be more creative, and are there ways that we can combine the law enforcement and interdiction approaches that we've successfully partnered with Colombia on with the public health approach that I think is important back home -- making sure that we're trying to reduce demand even as we try to choke off supply.

And so I'm looking forward to continuing to have that conversation. And based on the best evidence and the best ideas out there, hopefully we can continue to strengthen these efforts.

PRESIDENT SANTOS: (As interpreted.) If I understood your question correctly, it is why did we place drugs on the agenda when there are other more important things for the summit, or things that we should highlight about our country, such as the progress that we've achieved economically and in strengthening our democracy.

The question is well put, but the answer is in your court. The media were the ones that placed such a high level of attention on this issue. I said many times in the interviews that I conducted before this summit, I said I don’t want this issue to be the summit's issue; I have no interest in having this issue as the sole summit issue. This is one of many issues that some countries want to put on the table for negotiations.

And what I said before is that, fortunately, during this summit there were no issues that were left off the table, everything was open, and this was one of the issues that was discussed. We discussed it frankly, candidly. We heard positions from President Obama, from the United States, and positions from other countries, and they were all laid out on the table. And I think this is a positive step and that if we can find paths that will provide more effective and cheaper mechanisms to fight against drug trafficking and organized crime, well, let's work on that.

But it was never our intention for this issue to be the issue of the summit.

Caracol Televisión.

Q    President Obama, good afternoon. President Santos, good afternoon, sir. President Obama, you are the first U.S. President who comes to Colombia and stays three days, two nights in this beautiful city of Cartagena. How should Colombia and the world interpret this gesture? Is it an acknowledgment of the levels of security that we have here? Is it a gesture of trust in what President Santos has done? Or can we interpret it as a new phase beginning in the relations between the two countries?

And, President Santos, there are small business people who are very concerned about the FTA. What is your plan to deal with that, Mr. President?

PRESIDENT OBAMA: Well, I think the answer is, all of the above. It is -- this represents my confidence in the security of Colombia and the progress that's been made. It represents my confidence in President Santos and the work that we've done together, as a culmination of the efforts that we began when we first met a couple of years ago. It highlights the deliverables coming out of this summit -- not just the free trade agreement, but all the other work that has been done, such as the increase in the length of visitor visas. And it is consistent with the approach that I indicated I would take when I first came into office when it comes to Latin America and Central America.

This is a fast-growing part of the world. It is one of our largest trading partners -- the entire region. We have Colombian Americans, Americans who originate from the Dominican Republic, from Guatemala, from Mexico, who are constantly contributing to the vitality and the strength of the United States. And so there is a natural bond that already exists. And it's important that our governments build on that natural bond for the mutual benefit of both nations.

And my expectation is, is that we will continue to see the progress that's been made in this summit in subsequent meetings that we have with Colombia. And I think that Colombia increasingly, precisely because it's went through difficult times over these last several years, can end up being a role model for a lot of countries around the region because they'll see, you know what, there's hope -- even in the midst of violence, even in the midst of difficulty -- there's the possibility of breaking through to the other side and achieving greater citizen security and greater prosperity.

And let me just mention -- I know you asked the question to President Santos -- but on the issue of small businesses, one of the things that I brought to the summit was a proposal that I think people are embracing throughout the region, and that is that we begin to focus more on small and medium-sized businesses, on women's businesses, making sure that the benefits of trade don't just go to the largest companies but also go to smaller entrepreneurs and business people.

Because in today's globalized world there's an opportunity for a small business or a medium-sized business to access a global marketplace and grow rapidly, and that means more jobs here in Colombia, and that means more jobs in the United States. So we don't want trade to just be taking place at this layer up here; we want it to be taking place at every level because we think that's going to be good for both our economies.

PRESIDENT SANTOS: (As interpreted.) You asked me about what contingency plan we have to help companies and people who were going to be adversely affected by the FTA. All free trade agreements have winners and they have losers, and in this case we have many more winners than losers. Employment wins. We will create jobs in Colombia. We estimate that more than 500,000 jobs will be created. We will benefit in economic growth. We have estimated that between .5 and 1 percent will be added to our growth rate over the long term, and that will be translated into benefits for the Colombians. And so we estimate that everybody will benefit from this.

Obviously there are some sectors that don’t traditionally benefit. But small and medium enterprises can be the ones that benefit the most. That happened in Peru, for example, when the Peru-U.S. FTA -- we saw a major uptick of the number of SMEs that benefitted from this free trade agreement. We hope that that happens in Colombia as well, because thus far, Colombia has per capita exports which are very low, but we still have the great potential to bolster our free trade and our exports in those sectors that are vulnerable -- which have been identified as vulnerable, are the focus of a series of policies and efforts that will help them weather the storm, to be transformed, to be more competitive, and to be able to face the competition that will open up with this new FTA. That has happened with every free trade agreement that has been signed in the past.

What's important is that the final result yields more benefits than otherwise. And we have no doubts that in this case it will have more benefit for everyone.

Q    Thank you, sir. Yesterday, the President of Brazil was talking about the importance not only of growing the economic pie but making sure that it's divided more equitably. I wondered how you think that applies within the United States, where the idea of spreading the wealth around isn't always warmly greeted, and how, for example, with this free trade agreement you make sure that the benefits are widely shared. And if I may, sir, on an unrelated topic, if I could get your reaction to Prime Minister Netanyahu's comment that the P5-plus-1 had given Iran a freebie with this additional time.

And for President Santos, what responsibility do you believe the countries of Latin America, especially those that have become more democratic, have for helping to bring Cuba into the democratic fold?

PRESIDENT OBAMA: The goal of any government should be to create security for its citizens, and to give them opportunity to achieve prosperity and to pass that prosperity on to their kids. And I'm a strong believer that the free market is the best tool ever invented to create wealth.

But what's true in every country is that we always have to think about whether every single person is getting a fair shot, where they actually have opportunity. Is everybody doing their fair share to support the common efforts that are required to create a platform for growth? Is everybody playing by the same set of rules? And I think the history of the United States, the reason we became an economic superpower is because -- not only perfectly, not always consistently, but better than any other country on Earth -- we were able to give opportunity to everybody. That’s what the American Dream was all about.

So when we have debates now about our tax policy, when we have debates now about the Buffett Rule that we've been talking about where we say if you make a million dollars a year or more you shouldn’t pay a lower tax rate than your secretary, that is not an argument about redistribution -- that is an argument about growth. Because the history of the United States is we grow best when our growth is broad-based. We grow best when our middle class is strong. We grow best when everybody has opportunity. And that means that somebody who has a great idea and selling a great product or service, we want them to get rich. That’s great. But we also want to make sure that we as a society are investing in that young kid who comes from a poor family who has incredible talent and might be able to get rich as well.

And that means we've got to build good schools, and we've got to make sure that that child can go to college. And we also want to make sure that we keep our scientific edge, and that means we've got to invest in basic research. And that means that we've got to have some basic safety net, because people are more willing to take risks that are required for the free market to work if they know that if they fall on hardship, if something happens, that there's still some floor that they can't fall beneath, and that they'll be able to retire with some dignity and some respect.

And so one of the things that we're going to be talking about over the next several months as we debate the budget and government spending and the proper role of government, is just -- I want everybody to remember, I'm going to say this repeatedly -- this is not an argument about taking from A to give to B. This is not a redistributionist argument that we're making. We're making an argument about how do we grow the economy so that it's going to prospering in this competitive 21st century environment. And the only way we're going to do that is if people like me, who have been incredibly blessed, are willing to give a little bit back so that the next generation coming along can succeed as well. And the more people that succeed, the better off the country is going to be.

With respect to the Iranian talks, I've been very clear on this. Iran has violated U.N. Security Council resolutions. They're the only country that's a member of the Non-Proliferation Treaty, the NPT, that cannot convince the international community that they are abiding by the rules governing the NPT. And not just the United States, but the world community is now imposing some of the toughest sanctions that we've ever seen, and there are more to come. And it is my view that it would be contrary to the security interests of the United States, and destabilizing for the world and the region if Iran pursues, develops, obtains a nuclear weapon. So I've been very clear, and I've been talking about this quite a bit lately.

What I've also been clear about is that the best way to resolve this issue is diplomatically, and my belief that we still have a window in which to resolve this conflict diplomatically. That window is closing, and Iran needs to take advantage of it. But it is absolutely the right thing to do for the U.S. government, working in concert with the other permanent members of the Security Council, with Germany, with the rest of the world community, to pursue this path.

Part of the reason we're been able to build a strong international coalition that isolates Iran around the nuclear issues is because the world has confidence that I've been sincere and my administration has been sincere about giving Iran an opportunity to pursue peaceful nuclear energy while foreclosing the pursuit of a nuclear weapon. That strengthens our hand. That's part of the reason why we've been able to execute on these strong sanctions. And we're going to keep on seeing if we make progress.

Now, the clock is ticking. And I've been very clear to Iran and to our negotiating partners that we're not going to have these talks just drag out in a stalling process. But so far, at least, we haven't given away anything -- other than the opportunity for us to negotiate and see if Iran comes to the table in good faith. And the notion that somehow we've given something away or "a freebie," would indicate that Iran has gotten something -- in fact, they've got some of the toughest sanctions that they're going to be facing coming up in just a few months if they don't take advantage of these talks. I hope they do.

Was there an -- you guys ask too many questions. I start forgetting them.

President Santos.

PRESIDENT SANTOS: (As interpreted.) Any foreign policy has a formula: Interests plus principles equals a foreign policy. So how do you combine these interests and principles, and how you defend those principles is what makes a foreign policy. In our case and in the case of many countries -- countries that believe in freedom and democracy -- we have the obligation to make sure that those principles are applied in every form possible and in every place possible.

But there are different formulas to defend and apply those principles as well. There are certain paths that are more effective than others. In some cases, sanctions may work. Generally they don’t, but they may work in some cases. In some other cases, it has been proven that sanctions are not the solution, and in these cases we need to then pursue the defense of those principles through other ways.

And in our case, Colombia and other Latin American countries that believe in democracy and believe in freedom, we have the obligation to pursue those principles following the most effective path. And I believe that that can yield the best results.

PRESIDENT OBAMA: Thank you very much, everybody.

PRESIDENT SANTOS: Muchas gracias. (Applause.)

END
5:17 P.M. COT

Remarks by President Obama at CEO Summit of the Americas

Gran Salon Bolivar
Hilton Hotel
Cartagena, Colombia

10:43 A.M. COT

PRESIDENT OBAMA:  Well, first of all, I want to thank President Santos and the people of Colombia for the extraordinary hospitality in the beautiful city of Cartagena.  We're having a wonderful time.  And usually when I take these summit trips, part of my job is to scout out where I may want to bring Michelle back later for vacation.  So we'll make sure to come back sometime in the near future.  (Applause.)

I want to acknowledge Luis Moreno of IDB, as well as Luis Villegas of the National Business Association of Colombia, for helping to set this up, and everybody who's participating.

As President Rousseff indicated, obviously we've gone through some very challenging times.  These last three years have been as difficult for the world economy as anything that we've seen in our lifetimes.  And it is both a result of globalization and it is also a result of shifts in technology.  The days when we could think of each of our economies in isolation, those days are long gone.  What happens in Wall Street has an impact in Rio. What happens in Bogota has an impact in Beijing.

And so I think the challenge for all of our countries, and certainly the challenge for this hemisphere, is how do we make sure that that globalization and that integration is benefiting a broad base of people, that economic growth is sustainable and robust, and that it is also giving opportunity to a growing, wider circle of people, and giving businesses opportunities to thrive and create new products and new services and enjoy this global marketplace.

Now, I think the good news is this hemisphere is very well positioned in this global economy.  It is remarkable to see the changes that have been taking place in a relatively short period of time in Latin and Central America and in the Caribbean.  When you look at the extraordinary growth that's taken place in Brazil, first under President Lula and now under President Rousseff, when you think about the enormous progress that's been made here in Colombia under President Santos and his predecessor, what you see is that a lot of the old arguments on the left and the right no longer apply.

And what people are asking is, what works?  How do we think in practical terms about delivering prosperity, training our people so that they can compete in the global economy?  How do we create rule of law that allows businesses to invest with some sense of security and transparency?  How do we invest in science and technology?  How do we make sure that we have open and free trade at the same time as we're making sure that the benefits of free trade are distributed both between nations but also within nations?

And the good news is I think that, through various international organizations and organizations here within the hemisphere, we've seen enormous progress.  Trade between the United States and Latin, Central -- South America, Central America and the Caribbean has expanded 46 percent since I came into office -- 46 percent.

Before I came to Cartagena, I stopped in Tampa, Florida, which is the largest port in Florida.  And they are booming and expanding.  And the reason is, is because of the enormous expansion of trade and commerce with this region.  It's creating jobs in Florida, and it's creating jobs in Colombia, and it's creating jobs in Brazil and throughout the region.  Businesses are seeing that if they have an outstanding product or an outstanding service, they don’t have to restrict themselves to one market, they now have a regional market and ultimately a global market in which they can sell their goods and succeed.

A couple of things that I think will help further facilitate this productive integration:  Number one, the free trade agreement that we've negotiated between Colombia and the United States is an example of a free trade agreement that benefits both sides.  It's a win-win.  It has high standards -- (applause) -- it's a high-standards agreement.  It's not a race to the bottom, but rather it says each country is abiding by everything from strong rules around labor and the environment to intellectual property protection.  And so I have confidence that as we implement this plan, what we're going to see is extraordinary opportunities for both U.S. and Colombian businesses.

So trade agreements of the sort that we have negotiated, thanks to the leadership of President Santos and his administration, I think point the way to the future.

In addition, I think there is the capacity for us to cooperate on problems that all countries face, and I'll take just one example -- the issue of energy.  All of us recognize that if we're going to continue to grow our economies effectively, then we're going to have to adapt to the fact that fossil fuels are a finite resource and demand is going up much faster than supply.  There are also, obviously, significant environmental concerns that we have to deal with.  So for us to cooperate on something like joint electrification and electric grid integration, so that a country like Brazil, that is doing outstanding work in biofuels or hydro-energy, has the ability to export that energy but also teach best practices to countries within the region, create new markets for clean energy throughout the region -- which benefits those customers who need electricity but also benefit those countries that are top producers of energy -- that's another example of the kind of progress that we can make together.

On the education front, every country in the region recognizes that if we're going to compete with Asia, if we're going to compete with Europe, we've got to up our game.  We have to make sure that we've got the best-trained workers in the world, we've got the best education system in the world.  And so the work that President Rousseff and I are doing together to try to significantly expand educational exchanges and send young people who are studying science and engineering and computer science to the United States to study if they're Brazilian, down to Brazil to study best practices in clean energy in Brazil -- there's enormous opportunity for us to work together to train our young people so that this hemisphere is filled with outstanding entrepreneurs and workers, and allows us to compete more effectively.

So there are a number of areas where I think cooperation is proceeding.  Sometimes it's not flashy.  I think that oftentimes in the press the attention in summits like this ends up focusing on where are the controversies.  Sometimes those controversies date back to before I was born.  (Laughter.)  And sometimes I feel as if in some of these discussions or at least the press reports we're caught in a time warp, going back to the 1950s and gunboat diplomacy and Yanquis and the Cold War, and this and that and the other.  That's not the world we live in today.

And my hope is, is that we all recognize this enormous opportunity that we've got.  And I know the business leaders who are here today, they understand it; they understand that we're in a new world, and we have to think in new ways.

Last point I want to make -- I think when you think about the extraordinary success in Brazil, the success in Colombia, a big piece of that is governance.  You can't, I believe, have, over the long term, successful economies if you don't have some basic principles that are being followed:  democracy and rule of law, human rights being observed, freedom of expression.  And I think -- and also personal security, the capacity for people to feel as if they work hard then they're able to achieve, and they have motivation to start a business and to know that their own work will pay off.

And I just want to compliment both Brazil and Colombia, coming from different political traditions, but part of the reason why you've seen sustained growth is governments have worked effectively in each country.  And I think that when we look at how we're going to integrate further and take advantage of increased opportunity in the future, it's very important for us not to ignore how important it is to have a clean, transparent, open government that is working on behalf of its people.

And that's important to business as well.  The days when a business feels good working in a place where people are being oppressed -- ultimately that's an unstable environment for you to do business.  You do business well when you know that it's a well-functioning society and that there's a legitimate government in place that is going to be looking out for its people.

So I just want to thank both of my outstanding partners here.  They're true leaders in the region.  And I can speak, I think, for the United States to say that we've never been more excited about the prospects of working as equal partners with our brothers and sisters in Latin America and the Caribbean, because that's going to be the key to our success.  (Applause.)

* * * *

MR. MATTHEWS:  President Santos, I guess there are some issues in America -- we have a very large Hispanic population.  Ten percent of our electorate is going to be Hispanic in background.  We are the second-largest Spanish-speaking country in the world after Mexico.  People have dual languages in the United States, of course, but there is so much Spanish speaking. You have the chance to sit next to President Obama now.  Do you want to ask him about the ways you think the United States could help your country in the drug war?

* * * *

PRESIDENT OBAMA:  Do you want me to respond?

MR. MATTHEWS:  Yes, sir.

PRESIDENT OBAMA:  Well, this is a conversation that I've had with President Santos and others.  Just as the world economy is integrated, so, unfortunately, the drug trade is integrated.  And we can't look at the issue of supply in Latin America without also looking at the issue of demand in the United States.  (Applause.)

And so whether it's working with President Santos or supporting the courageous work that President Calderón is doing in Mexico, I, personally, and my administration and I think the American people understand that the toll of narco-trafficking on the societies of Central America, Caribbean, and parts of South America are brutal, and undermining the capacity of those countries to protect their citizens, and eroding institutions and corrupting institutions in ways that are ultimately bad for everybody.

So this is part of the reason why we've invested, Chris, about $30 billion in prevention programs, drug treatment programs looking at the drug issue not just from a law enforcement and interdiction issue, but also from a public health perspective. This is why we've worked in unprecedented fashion in cooperation with countries like Mexico on not just drugs coming north, but also guns and cash going south.

This is one of the reasons why we have continued to invest in programs like Plan Colombia, but also now are working with Colombia, given their best practices around issues of citizen security, to have not just the United States but Colombia provide technical assistance and training to countries in Central America and the Caribbean in finding ways that they can duplicate some of the success that we've seen in Colombia.

So we're mindful of our responsibilities on this issue.  And I think it is entirely legitimate to have a conversation about whether the laws in place are ones that are doing more harm than good in certain places.

I personally, and my administration's position, is that legalization is not the answer; that, in fact, if you think about how it would end up operating, that the capacity of a large-scale drug trade to dominate certain countries if they were allowed to operate legally without any constraint could be just as corrupting if not more corrupting then the status quo.

Nevertheless, I'm a big believer in looking at the evidence, having a debate.  I think ultimately what we're going to find is, is that the way to solve this problem is both in the United States, us dealing with demand in a more effective way, but it's also going to be strengthening institutions at home.

You mentioned earlier, the biggest thing that's on everybody's minds -- whether it's the United States, Canada, Brazil, Colombia, Jamaica -- is, can I find a job that allows me to support my family and allows my children to advance and feel secure.  And in those societies where you've got strong institutions, you've got strong business investment, you've got rule of law, you have a law enforcement infrastructure that is sound, and an economy that's growing -- that country is going to be like a healthy body that is more immune than countries that have weak institutions and high unemployment, in which kids see their only future as participating in the drug trade because nobody has actually trained them to get a job with Google, or Pepsi, or start their own small business.

And so I think that it's important for us not to think that if somehow we look at the drug issue in isolation, in the absence of dealing with some of these other challenges -- institutional challenges and barriers to growth and opportunity and the capacity for people to climb their way out of poverty, that we're going to be able to solve this problem.  The drug issue in this region is, in some ways, a cause, but it's also, in some ways, an effect of some broader and underlying problems.  And we as the United States have an obligation not only to get our own house in order but also to help countries in a partnership to try to see if we can move in a better direction.  (Applause.)

* * * *

MR. MATTHEWS: Mr. President, do you want to respond?  I think the question that seems to be apparent here in the last couple of days is, first of all, tremendous enthusiasm, a zeitgeist here that's almost unusual in the world for positive optimism about the development in this part of the world.  It's not like it was -- just isn't the way it was we grew up with.

The challenge I think you just heard from the President of Brazil was the notion that Latin America is not interested in being our complementary economy anymore -- the agricultural end while we do the industrial end; they do the provision of raw materials and we do the finest and highest-level high-tech work. How do we either respond to Brazil's demand, really, to be partners and rivals -- they want to use our educational resources, they want to come north to learn how to compete with us -- right, Madam President?  You want to be equals.  You want to learn everything we know, and then take it back and shove it at us, right?  (Laughter.)  Isn't that it?

Well, anyway, that's the response -- I'd ask you for your response.  (Laughter.)

PRESIDENT OBAMA:  Chris, I'm not sure you're characterizing what President Rousseff said -- (laughter) -- but this is what happens when you get some of our U.S. political commentators moderating a panel.  (Laughter.)  They try to stir up things that may not always be there.  (Applause.)  And Chris is good at it.  He's one of the best.  (Laughter.)

But, look, this is already happening.  This is already happening.  Brazil has changed, Colombia has changed -- and we welcome the change.  The notion somehow that we see this as a problem is just not the case, because if we've got a strong, growing, prosperous middle class in Latin America, those are new customers for our businesses.  (Applause.)

Brazil is growing and that opportunity is broad-based, then suddenly they're interested in buying iPads, and they're interested in buying Boeing airplanes and -- (laughter.)

PRESIDENT ROUSSEFF:  Boeing -- Embraer.  (Laughter and applause.)

PRESIDENT OBAMA:  I was just trying to see how she'd respond to that.  (Laughter.)  But the point is, is that that's a market for us.  So we in the United States should welcome not just growth, but broad-based growth, of the sort that President Rousseff described.

I'll give you just -- I said I was in Tampa.  All those containers that are coming in, they have, in some cases, commodities coming from Latin America, but they also have finished products that are coming in from Latin America.  We have commodities that are going into Latin America that we're sending back on those containers, as well as finished products.  And so this is a two-way street.

When I came into office, one of my first decisions was to say that the G20 was not a temporary thing to respond to the world economic crisis; this should be the permanent forum for determining and coordinating direction in the world economy.  And frankly, there were some folks who were members of the G8 who were upset with me about that determination, but realistically you can't coordinate world economic issues if you don't have China and Brazil and India and South Africa at the table -- and Mexico.  That's not possible.

So the world has changed.  I think the United States and U.S. businesses stand to benefit from those changes.  But it does mean that we have to adapt to that competitive environment.  And all the advantages that President Rousseff mentioned we have as the United States -- its flexibility, our scientific edge, our well-educated workforce, our top universities -- those are the things that we continue to have to build and get better at.  And that's true for every country here.

Every one of the businesses here are going to be making determinations about where you locate based on the quality of the workforce, how much investment you have to make in training somebody to handle a million-dollar piece of equipment.  Do you feel as if your intellectual property is going to be protected?  Do you feel as if there's a good infrastructure to be able to get your products to market?  And so I think this is a healthy competition that we should be encouraging.

And what I've said at the first summit that I came to, Summit of the Americas that I came to, was we do not believe there are junior partners and senior partners in this situation. We believe there are partners.  And Brazil is in many ways ahead of us on something like biofuels; we should learn from them.  And if we're going to be trying to mount a regional initiative, let's make sure that Brazil is taking the lead.  It doesn’t have to be us in every situation.

Now, the flip side is -- and I'll close with this -- I think in Latin America, part of the change in mentality is also not always looking to the United States as the reason for everything that happens that goes wrong.  (Applause.)

I was in an interview -- several interviews yesterday.  These were actually with Spanish-speaking television stations that have broadcast back in the United States.  And the first interviewer said, why hasn't the United States done more to promote democracy in the region, because you've done a lot in the Arab Spring but it seems as if you're not dealing with some of the problems here in Latin America.  The next questioner said, why are you being so hard on Cuba and promoting democracy all the time?  (Laughter and applause.)  That’s an example, I think, of some of the challenges we face that are rooted in legitimate historical grievances.  But it gets -- it becomes a habit.

When it comes to economic integration and exchanges, I am completely sympathetic to the fact that there are challenges around monetary policy in developed and less-developed countries. And Brazil, for example, has seen the Real appreciate in ways that had been hurtful.  I would argue a lot of that has to do with the failure of some other countries to engage in rebalancing, not the United States.  But having said that, I think there's not a country in Latin America who doesn’t want to see the United States grow rapidly because we're your major export market.

And so most of these issues end up being complicated issues. Typically, they involve both actions in the United States as well as actions in the other countries if we're going to optimize the kind of growth and prosperity and broad-based opportunity that both President Santos and President Rousseff have spoken about.

And the United States comes here and says:  We're ready to do business.  We are open to a partnership.  We don’t expect to be able to dictate the terms of that partnership, we expect it to be a negotiation based on mutual interest and mutual respect.  And I think we're all going to benefit as a consequence of that. (Applause.)

MR. MATTHEWS:  Thank you very much, President Rousseff, President Santos, and my President, President Obama.  Thank you. It's been an honor.

END
11:40 A.M. COT

Remarks by the First Lady Honoring Young Women from Military Families

Jacksonville Naval Air Station
Jacksonville, Florida

6:08 P.M. EDT

MRS. OBAMA: Oh! (Applause.) How are you guys doing? (Applause.) You guys sit down. Rest yourselves. Are you having fun? (Applause.) There is more fun to come. I am thrilled -- thrilled -- to be here.

I want to start by thanking Maddie for her poise and for introducing me not once, but twice. (Applause.) Well done, Maddie. She is amazing. She's terrific. Very proud of her, so let's give her another round of applause. (Applause.)

A few other people that I want to thank. I want to thank Representative Corrine Brown, who's here, and Mayor Alvin Brown, who are here to -- joining us today. Thank you both for your leadership and being here with us.

I also want to take a moment to recognize all of the extraordinary men and women in uniform who are here today. You're amazing -- and your amazing spouses. Yay for the spouses. Thank you for the service that you've given. Thank you for the sacrifices that you've made. You all are the very best this country has to offer, and I am thrilled that you could join us here today.

And finally, I want to thank our guests of honor, these amazing, beautiful, well-dressed, well-put-together young women we are celebrating here today. (Applause.) And on behalf of myself and my husband, I want to tell you all truly how proud we are of you. We are so proud of you. We are inspired by you, and we are grateful for everything that you do for this country every single day. That’s why we wanted to have you here.

You see, when we talk about how our men and women in uniform sacrifice so much and serve this country so bravely, we’re not just talking about your parents. We are not. We are talking about all of you. We’re talking about our military kids and our military families, because we know that when your parents are called to serve, you all serve right alongside them.

When your parents get that call to pick up and move halfway across the country, you pick up and move right alongside them. And then, just when you finally get settled in, just when you’re feeling comfortable and make friends and start fitting in, what happens? That call comes again, right? And you have to start all over again and make new friends, and settle in, yet again.

And I know that couldn’t be easy. That can't possibly be easy for you. And I know it's even harder when your parents are deployed, and you have to keep your spirits up through all those missed holidays, and missed birthdays, and times when you would give anything in the world to have them back home.

And I know that some of you here will be -- for you, there will be an empty seat at graduation -- I know this. And for some of you, when it comes time for the prom, mom might not be there to help you pick out your dress. Dad might not be there to see you out on your date. And I know that that can't possibly be easy either.

But here’s something else that I know: Through it all –- through all the moves that you've had to make, through all those difficult moments, you all have stayed strong. I have seen it. I've seen it in so many kids like you across this country. You all have risen to the challenge.

You’ve become leaders in your schools. You're excelling in your classes. You're getting involved in all kinds of activities. You’ve become leaders in your communities, finding all kinds of ways to volunteer and give back. And many of you have stepped up at home as well, juggling activities and homework with chores and housework.

Many of you have had to put on a brave face for maybe a younger brother or sister, even when you were worried. You’ve had to reassure your parents that you were okay, even when sometimes you weren’t.

And you’ve done all of this because ultimately, you understand that your parents are part of something far bigger than themselves. You know that they protect and defend the freedoms that every single one of us holds dear. You know that their service keeps this country safe every single day. And you all are a vital part of that work. You truly are.

By working so hard at school and at home, and doing your part, you give your parents the peace of mind they need to focus on their mission. With your service, you make their service possible. And for that, we can't thank you enough. We cannot thank you enough.

Now, I know that many of you have never known anything else, right? This is your life. So for you, this is no big deal, maybe. Maybe you think it's nothing special, because this is just how you've grown up.

But I am here today -- we are all here today, and we're doing all of this today -- because you should know that this is a big deal. You are special. You all have lived lives that make you incredibly special young individuals.

As military kids, you have learned lessons and had experiences that many people don’t have in their entire lifetimes. You’ve immersed yourselves in all kinds of communities and cultures. You’ve made friends with people from all different backgrounds. And you’ve gained the wisdom and the perspective to appreciate what really matters in life.

You see, unlike a lot of young people, you all don’t take your families for granted, right? A lot of times, you have to work to stay connected to your families -- maybe through Skype. It's a lot of hard work making the most of those precious weeks of leave, saying the things that we don’t nearly say enough to the people we love –- things like “I’m so proud of you," “I don’t know what I’d do without you," “I love you more than you will ever know.”

And that’s something that always strikes me about our military families –- how dealing with the challenges of military life actually strengthens your family bonds, rather than weakening them; how spending time apart oftentimes actually brings you closer together. And all of that is part of who you are. And you should know that.

And as you get older, you will see that growing up in a military family has prepared you for life in a way that nothing else can. Because that’s really what life is about –- it’s about weathering all sorts of changes and transitions, and bumps and bruises. But it’s also about savoring the good times, right? Treasuring the people that we love and appreciating the many blessings that come with living in this great country of ours. That’s what all of you do every day.

Like your parents, you all are the very best this country has to offer. You’re role models not just for kids, but for adults and for all Americans who want to see what patriotism, sacrifice and service really looks like. That’s why we're here.

So I want to thank you all for everything that you do. I want to once again thank your parents for their service to our country.

And now -- here's where the fun begins -- I would like to announce that we have a special surprise guest who is about to join us. She is someone that I am proud to call a friend. She's a tremendous supporter and admirer of veterans and military families. And she's so amazed by your service that she's going to put you all on national TV right now.

So are you ready?

AUDIENCE: Yes! (Applause.)

MRS. OBAMA: So joining us live from the set of her TV show, I'm proud to introduce the one and only Ellen DeGeneres. (Applause.)

MS. DEGENERES: Hi, everybody!

MRS. OBAMA: They're screaming.

MS. DEGENERES: Hello, Mrs. Obama!

MRS. OBAMA: Hey, Ellen.

MS. DEGENERES: We're screaming here too! (Applause.)

MRS. OBAMA: What's going on?

MS. DEGENERES: I hope I'm not interrupting anything.

MRS. OBAMA: No, we're good. We're just -- good to have you here.

MS. DEGENERES: Good to be there. Congratulations on Joining Forces' one-year anniversary. Tell everybody what it's about, please.

MRS. OBAMA: Well, Joining Forces is our national initiative to make sure that all Americans honor our troops, veterans and families. This is the one-year anniversary. We've made some amazing strides, and we're here with some great military kids to give them a special thank you.

MS. DEGENERES: And that’s why I'm there, too, to give them a special thank you. You've accomplished so much already. What do you hope to accomplish this year?

MRS. OBAMA: Well, we want to do more. We want to make sure that every American does something. We're saying -- our motto is everyone can do something. It can be something as big as having you on your show, but it can also be helping mow the lawn; it can be doing what you do best, but doing it on behalf of a military family -- finding those families within your communities and reaching out to find out what they need.

So we want more of that to go on across this country.

MS. DEGENERES: So that is what you'd say if you -- if somebody says how can I help, it's all the little things. Just call up and say, what can I offer, what's my specialty?

MRS. OBAMA: Yes. And people can go to our website, joiningforces.gov. And we've got thousands of wonderful ideas, suggestions, things that are going on in communities all across this country. That’s a good place to start.

MS. DEGENERES: Great. Great. Now, Mrs. Obama, before we go any further, I think it's time we talk about the push-up situation. (Laughter.)

MRS. OBAMA: You're still bothered by that, huh?

MS. DEGENERES: Oh! (Laughter.)

MRS. OBAMA: Still feeling the wounds of defeat. (Laughter.)

MS. DEGENERES: Let's just make sure that everyone sees what we're talking about here. You were here in February, we had a competition to see who could do the most push-ups. I did 20, and you did 25. (Laughter.) Now, let's just watch the video for a second and then we'll comment.

Anything you'd like to say?

MRS. OBAMA: I could have done 35. I stopped because I felt bad for you. (Laughter and applause.)

MS. DEGENERES: I bet you could have. I actually bet you could have.

All right, we have to take a break. And we'll be back with the First Lady, Michelle Obama, and we have a surprise for a few lucky people there. We'll be right back. I'm going to do some push-ups. (Applause.)

MS. DEGENERES: Oh! I'm exhausted. I just did 53 push-ups. (Laughter and applause.)
 
We're back with the First Lady of the United States, Michelle Obama. She's in Jacksonville, Florida right now with military families. (Applause.) Mrs. Obama?

MRS. OBAMA: Yes! (Applause.)

MS. DEGENERES: Mrs. Obama, tell me who you're sitting with right now.

MRS. OBAMA: Oh man, we've got some great, beautiful young ladies. They're just gorgeous. You want me to pass the mic? You want to hear from them? You want to hear who's here?

MS. DEGENERES: Sure, let me meet them.

MRS. OBAMA: All right, we've got --

Q Hi, I’m Rachel.

MS. DEGENERES: Hi, Rachel. You excited to be there today?

Q Oh, I'm extremely excited to be here. I'm so honored. I'm here with all my classmates and my family members as well.

MS. DEGENERES: Well, it's so nice to meet you Rachel. Who are you sitting next to?

Q I'm sitting next to --

Q Hey! My name's Kianna. (Laughter.)

MS. DEGENERES: Hey, Kianna! (Applause.) Hey Kianna, I love your energy. And your mom is serving overseas right now, right?

Q Yes, she is.

MS. DEGENERES: And how do you stay in touch?

Q My mom calls our house a few times a week, and I always enjoy whenever she calls the house. I love hearing her voice, but it reminds me of her background.

MS. DEGENERES: I bet, I bet. And you're sitting next to?

Q Hi Ellen. My name is Elise.

MS. DEGENERES: Hi Elise, how are you?

Q I'm good. How are you?

MS. DEGENERES: And your dad is a Navy vet? I'm fantastic, thank you. Your dad is a Navy veteran. What is the best thing about being a military kid?

Q I really think that it teaches you a lot of good characteristics and to have a lot of strength and courage. Because it's really not easy when you have a family member out in deployment.

MS. DEGENERES: I know, it certainly is not easy, and that’s why you get so much love and support from all of us. We admire your strength and everything that your parents are doing for us. (Applause.)

So my question is, it's almost prom. You're looking forward to that, I bet, right?

Q Yes. Definitely.

MS. DEGENERES: Now, Mrs. Obama, I don’t think I've ever shown you my prom picture. I just wanted to -- I want to show you my prom picture first. (Laughter and applause.)

MRS. OBAMA: That is an excellent picture. Love the dress. Love the dress.

MS. DEGENERES: Thank you very much. That was a tablecloth at one point. (Laughter.) Now, I heard you have a good one too, so I thought I would share yours. (Laughter.)

MRS. OBAMA: That split was a little high. I don’t know if I'd let my kids go out with a split that high, so let's not show this to Malia and Sasha.

MS. DEGENERES: All right. Were you shopping at Pier One or something? (Laughter.)

MRS. OBAMA: You've never done the wicker chair shot? That’s standard.

MS. DEGENERES: No, I've seen the wicker chairs before but -- I didn’t know it was standard.

All right. Well, listen, JC Penny knows that you guys are getting ready for prom. They're a one-stop shop for all your prom needs. They have dresses, shoes, accessories -- even a salon -- all at great prices. So they're giving all three of you a $250 JC Penny giftcard. (Applause.)

And I know there are 300 other students there with you all for the event today who need to get ready for the prom as well. So all of you students who are there in Florida with Mrs. Obama are also getting a $250 JC Penny giftcard. (Applause.)

Thank you so much for your time today, Mrs. Obama. You know I admire you, I think you're an amazing, amazing woman. Thank you for all that you're doing. We're going to put something up on our website if anyone wants to get involved with Joining Forces. And we send our love and our support to all of you there. Thank you so much for all you do. And thank you, again, Mrs. Obama, for your time.

MRS. OBAMA: Thank you, Ellen. We love you. This is amazing. (Applause.) Thank you.

MS. DEGENERES: Love you, too. We'll be right back.

END
6:30 P.M. EDT

Remarks by Vice President Joe Biden on Tax Fairness at a Campaign Event

Exeter Town Hall
Exeter, New Hampshire

12:20 P.M. EDT

THE VICE PRESIDENT:  Hello, New Hampshire.  (Applause.)  Diedre -- I told Diedre, I should say amen and sit down.  (Laughter.)  And I told Diedre, we have something in common.  I drove a school bus too, when I was in law school to help pay my way, and now I’m kind of an administrative assistant, as well.  (Laughter and applause.)  And so we got a lot in common.

Look, it’s great to back in New Hampshire and to see -- I can't see a lot faces because of the lights, but back here I see a number of familiar faces, and up there I see a number of familiar faces, and it’s great to be back with you all.  (Applause.)

You know over the past few weeks, I’ve given a series of speeches on behalf of the President and myself about what’s at stake for the middle class and why the choice in this election is so fundamental.  I’ve spoken about the rescue of the automobile industry, the American automobile industry; about retirement security and having America lead the world again in manufacturing.  And today, I want to speak about a fourth topic that's going to impact significantly on -- with the other three -- on the state of the middle class in America, and that is the tax system.

All of these issues touch the most fundamental issue of all:  How do we rebuild an economy with a strong and growing middle class?  That's the challenge.  As the President says, that's the challenge of our time.

When all is said and done, this campaign we’re on is going to really boil down to a very simple question:  Are we going to rebuild an economy with a middle class that's growing and not shrinking?  And we are going to restore the value that says, in America if you work hard, you can get ahead, that personal responsibility will be rewarded, that everyone -- everyone -- from Main Street to Wall Street will play by the same rules?

We are as a country going to make I believe the responsible choice to ensure that that kind of future we want for our children is back within reach for our children.  Because you know the neighborhoods you grew up in, so many parents today of young children have doubt unlike we had raising our children that if they played by those rules, if they did it by the numbers, if they worked hard, they could be certain that they’d provide that opportunity for their children.  That's what this is really all about.

And part of the debate is about the tax system we have, and the subject that's on everyone’s mind as April 15th approaches.  President Obama and I believe that it’s simply wrong to have a system that’s so riddled with loopholes and preferences that the wealthiest and most successful of all Americans often pay at a lower rate -- at a lower rate of their taxes than average middle-class people do.

Warren Buffett who many people in America have come to know as an extremely successful, generous and gregarious man who shined a very, very bright light on this subject about -- when he noted the absurd fact that he, as a billionaire under the current tax laws, pays actually at a lower tax rate than his secretary pays.

But the thing is he’s not alone.  There are tens of thousands and several millions of people who are in that same situation that -- making over a million dollars do the same exact thing.  It happens all the time because the law allows it and because we are fortunate enough to -- they're fortunate enough to hire good accountants and lawyers who know who to take full advantage of every aspect of the tax code.

And so as we start, we have -- we decided how do we gain this -- how do we begin to get this back under control?  How do we being to right the ship here so middle-class people have an even chance? 

And to start, we started by proposing what we call the Buffett Rule to ensure that no one who makes a million dollars or more in any single given year will pay at an effective tax rate that's less than 30 percent.  It’s simply a matter of fairness.

But more than that, it’s also, I would argue, a matter of common sense.  Let me read you a quote, and this is a quote from someone else:  “Just a moment ago, I told some people about a letter I just received.  It’s a letter from a man out there in the country, an executive who’s earning six figures, well above a hundred thousand dollars a year.  He wrote me,” it goes on to say, in support of my -- “in support of the tax plan because he said, I am legally able to take advantage of the present tax code, nothing dishonest, doing what the law prescribes and wind up paying a smaller  tax than my secretary pays.  That letter wasn’t written to Warren Buffett.  That letter was written to and read by President Ronald Reagan.

The person went to say, “and I’d like to be able to come to Washington to be able to testify before the Congress to explain to them how I do that and why it’s wrong.”

Look, I remember -- I remember a time not too long ago when President Clinton was President of the United States, and when he left office, he left America with an enormous surplus and an enormous projected surplus.  I was proud to have been in the Senate at the time and helped him accomplish that goal.

But then Washington made a series of really bad choices after he left:  Two huge tax cuts, two huge tax cuts, neither of which were paid for, skewed overwhelmingly to the very wealthiest Americans of all; two wars -- two wars -- carried on the books, not a single penny paid for either one of those wars; and a [sic] Medicaid drug program worthy but also not paid for.  In addition, the Bush administration went on and eviscerated the oversight functions of the federal government, and as a consequence too many investors bet on short-term gains and made extremely risky financial schemes.  And you know the result, the worst economic crisis since the Great Depression.

So when Barack and I came to office, when we walked in the door at the peak of this crisis, we were handed a $1 trillion bill, deficit projection for that year, which started -- which started in September, the budget year, we were handed a $1 trillion bill before we were -- we had 10 minutes on the job, and the near certainty that we were going to lose several more million jobs before we even could get started with our program -- billions of dollars in lost revenues as a consequence of the Great Recession, coupled with the steps that had to be taken to prevent that recession from turning into a depression, which added more to the deficit.

And now -- now that we turn the corner, we’re faced with another choice:  Do we pay down those deficits, cutting wherever we can, as we’ve been doing, while at the same time investing in things we know we must invest in, in order for the economy to grow and create good, middle-class jobs?  We know what they are.  It’s invest in education, research and development, new technologies, clean energy.  Or do we continue to spend hundreds of billions of dollars on tax windfalls for millionaires, windfalls they don't need and I might ask, they never asked for it?

I come from a wealthy little state.  I often point out, wealthy people are just as patriotic as poor people.  They're just as patriotic as middle-class people, and I think they know -- I think they know they should be doing more.

And now Governor Romney and others argue that if we keep these windfalls and then shower even more windfalls on the very wealthiest, that's how America’s economy will grow.  That's how we will create jobs.  That's their thesis in a nutshell.  It amazes.  It absolutely amazes me.  He offers this prescription as if it’s somehow a new idea, folks, like something we haven’t seen before; even worse -- like something we haven’t actually tried before. 

Folks, we’ve seen this movie before.  You’ve seen the movie.  It does not end well.  It does not end well.  (Laughter.)   Where has he been?  (Applause.)  Where has he been?

Could it be that he’s out of touch?  (Laughter.)  I don't know, but I tell you what, he missed the movie.  (Laughter.)  Although he benefitted from the movie.

Folks, this is the same argument that was touted out a decade ago by President George Bush to justify the unjustifiable tax cuts for the very wealthy then.  And look what happened.  It actually had the opposite impact.  It produced the slowest job growth in half a century.  And during that period from 2000 to 2007, middle-income people actually lost $2,300 in income.  They actually retreated, did not grow.  But it is true that the very top did very, very, very well.  But the impact was our economy faltered, the middle class shrank, the poor got poorer, and ultimately the economy collapsed.

And on whom did it collapse?  It collapsed on all of you.  It collapsed on the middle class, and it came down with a crash -- $1.7 trillion in lost income -- lost value, the American people.  You watched the equities in your homes evaporate.  You watched your 401(k)s be eviscerated.  That's what it produced, and now Mitt Romney wants to take us down that same road again.

Let me state it plainly.  The President and I are determined to do all in our power to make sure we never go down that road again.  (Applause.)

Look, folks, it really is a simple, straightforward proposition.  There’s nothing very complicated about this.  We believe, as I suspect most of you do, Democrats and Republicans, we believe it’s fundamentally unfair to ask some middle-class families to pay more and to lose more opportunity so a millionaire can pay less.

Look, it’s that simple.  I don't know any person -- I don't know any reasonable person, regardless of their political background, who disagrees with that proposition.  Back when we were trying to put more teachers and cops back on the street, and we had a very small tax -- surtax on the first dollar over a million dollars, the polls showed the vast majority of millionaires thought it was the right thing to do.

So I don't buy this argument Republicans offer.  I don't buy this argument that the very wealthy aren’t prepared to contribute to the recovery in the same way that everybody else is prepared -- they're not prepared.  They're not prepared.

Ronald Reagan, Warren Buffett, Diedre, the President -- nobody that I know, no reasonable person, at least in my view thinks this is the American way.  In America, we’re not supposed to have a system that's rigged.  We’re not supposed to have a system with one set of rules for the very wealthy and one set of rules for everybody else.  And I might add if you notice, we’ve maintained our position that nobody under $250,000 would have their taxes raised, and where I come from, that's wealthy.

This is -- we’re talking about the very wealthy.  Ladies and gentlemen, time and again, time and again, middle-class Americans have shown their willingness to stand up and do their part in times of political, economic or military crisis -- time and again.  But the one thing the neighborhoods I come from and I suspect all of you, the one thing we don't like being played for is a sucker.  The one thing we don't like is being played for as a sucker.  (Applause.) 

So when you all pay your taxes next week, you and every citizen in New Hampshire and my home state of Delaware ought to be able to know that everyone one else is paying their fair share, as well.  But the truth is you know they're not.  The truth is when you pay those taxes you know not everyone is paying their fair share.

And, folks, it’s not just the Buffett Rule.  The Buffett Rule is not going to solve all problems.  It just brings a modicum of fairness at the outset here.  If Governor Romney has his way, we’ll have the Romney Rule.  And I mean it sincerely -- this isn’t a cute little deal.  There’s a Romney Rule.  The Romney Rule says, let’s double down on the tax cuts for the wealthy.

Look, folks, it’s not -- this is not about -- this not about class warfare; this is about math.  This is about math and people’s lives.  As my dad used to say, and I know the Congressman has heard me say this many times, don't tell me what you value, show me your budget, and I will tell you what you value.  Show me your budget and I will tell you what you value.  (Laughter and applause.) 

So let’s take a look.  Let’s take a look.  Let’s take a look what the Romney Rule values, what the Governor values, and his colleagues.  He values Bush tax cuts to be made permanent for the wealthy.  The ones that are intended to expire this December, he wants to extend them permanently.  That will cost $1 trillion over the next 10 years; $800 billion of that trillion going to people who make a minimum of $1 million.  And to add insult to injury, the Romney Rule proposes to give another $250,000-a-year tax cut to the average millionaire, on top of maintaining the Bush tax cuts.

I know -- if you hadn’t watched all the debates, you’d probably think I’m making this up.  (Laughter.)  But seriously, that's what -- that's what he calls for, the Romney Rule calls for.  That's another trillion dollars in tax cuts over the next 10 years going to the top 1 percent of American taxpayers.

(Baby cries.)

THE VICE PRESIDENT:  I don't blame her for crying.  She’s going to -- (Laughter and applause.)  She is going to inherit it.   She’s going to pay for it.  That's one smart baby.  (Laughter and applause.)

Look, folks, let me say it again, the Bush tax cuts for the very wealthy, and the new proposal of a trillion dollars in additional tax cuts.  These are tax cuts that folks in that category, the vast majority, didn't ask for.  They didn't ask for them.  They don't need them to maintain their standard of living.  And by the way, I’m being serious about that.  The only time people really sacrifice is when they lose a tax break or a tax structure that forces them to change their standard of living.  That what changes people -- when you have to move out of your house and rent, instead of own; when you can't send your kid to college and you can only send them to trade school and so on and so forth.  But nobody in the category designed to benefit from these tax cuts is going to have to change one, single aspect of their standard of living.

It’s a stark choice we have to make, a choice between the Romney Rule that I think will take the country -- take the country in a direction that we don't want to go.  Look, the Buffett Rule says no one making more than a million dollars will pay a smaller share of their income taxes than middle-class families do.  And you’ll hear them come back and say, well, the effective tax rate for middle-class families is lower and so on, a lot of what that is said it true, but the bottom line is -- let me put it another way:  Anybody making a million dollars can't pay 30 percent in taxes?  That's lower than the prescribed tax rate for millionaires already -- not just for millionaires, for people making over $200,000.

The Romney Rule says that the very wealthy should keep every tax break and loophole they have and get additional new tax cuts every year that are worth more than what the average middle-class family makes in a year -- in an entire year!  And in the neighborhoods -- I asked them to look up what the average income in this area is -- that one -- new $250,000-a-year tax break would be roughly -- if the numbers we were given are right -- somewhere between two -- excuse me, four times greater than the average income of a family in this -- in “this neighborhood.”  It’s just not fair.

But beyond being not fair, it is literally bad economic policy.  It is bad economic policy.  I understand -- we understand rewarding risk.  We understand rewarding people who innovate.  We understand that.  We understand some cases that deserve a different tax treatment to get people to take risks to benefit us all.  But let me put this in perspective by giving you an illustration.  This summer -- and Diedre just indirectly referenced it -- this summer, the interest rate on student loans is supposed to double, is set to double.  We are pushing the Congress to try to hold it at what it is, 3.8 percent.  It’s going to double now -- unless we enact the President’s plan.

With the Romney Rule, we couldn’t afford to do anything like that.  You know what it would mean to middle-class families in New Hampshire with a couple of kids going to college, will see their interest rates double.  Just imagine if tomorrow, your interest rate on your car loan doubled, what it means out of your pocket.  Imagine tomorrow if the interest rate you’re paying on your mortgage doubled.  I think these guys don't come from the same place we come from.  That makes a difference.  It makes a difference in your standard of living.  It makes a difference in what you can do for your family.  It matters.

It’s all about the impact of the Romney Rule on the middle class or the Obama-Biden approach.  It’s about whether or not you're going to be able to afford to send your kids to college, whether or not you can live in a safe neighborhood because there’s adequate resources to have sufficient police protection and fire protection.  It’s about whether or not your mom can pick up all her prescription drugs and not leave two at the counter.

My mom was living with me.  I didn't even know she was doing it till I followed her to the drug store, literally, and watched my mom say to the druggist, no, Honey, that's okay.  I only need four of these.  It’s about whether or not working moms, as Diedre, can afford not just childcare, decent childcare -- decent childcare. 

Look, in our view the fair way to do this is also the right way to do this, the economically sound way to do this, and that's why the President and I have been talking about this and we’ll continue to talk about it for a while.

Let me tell you what we propose in addition to the Buffett Rule.  We laid out a plan to reduce the federal deficit by $4 trillion over the next decade, and people say, well, how do you do that?  Well, we do that by making some very painful cuts -- we already cut over a trillion dollars, painful cuts.

But we also get that $4 trillion by coming up with $1.5 trillion by ending unnecessary tax breaks for the very wealthy, so our children don't have to carry the burden.  That's how we get to $4 trillion.  You can't get there without cutting bone and marrow if you don't include the elimination of the tax breaks for the very wealthiest among us.

If we put the Buffett Rule in place, let the Bush tax cuts expire for the very wealthy, and reject Romney’s additional trillion dollar tax cut for the wealthy, America will be able to do the things we need to do to grow the economy.  And you all know -- everyone knows what they are.

We can't be the most competitive nation in the world when we rank 16th in the world in the percent of college graduates we have as a nation.  We have to invest in education.  It is self-evident.  But to do that, to do that, you have to say it’s more important to help educate hundreds of children or send hundreds of kids to college than to give one billionaire the Romney rule tax cuts because that it would equate to.  (Applause.)  One, just one.  (Applause.)

And you don’t even have to go to billionaire.  How many kids can we send to college for $250,000 a year, the tax break he wants to add for people making over a million?  Look, choices matter.  They have consequences.  The President and I will make that choice but Mitt Romney will make a different choice.

We believe we need to provide tax credits for cutting-edge manufacturing enterprises so Americans will be able to lead the world in the industries of the future, what you’re doing up here in New Hampshire -- providing good paying jobs for a growing middle class.  But to do that -- to do that, you have to say that creating jobs in America is more important than another tax break for millionaires and billionaires, or for that matter, a tax break that is going to go overseas.  (Applause.)

The American people know the choice the President and I have made, and we’re going to make sure they know the choice the Romney rule is making.  Look, Governor Romney and his friends just have a -- they’re good people, but they have a fundamentally different economic philosophy than we do.

It’s -- to put it bluntly, we think it’s out of step with basic American values.  Now, I’m not calling these guys un-American; they’re sound, patriotic Americans.  I don’t want to hear anybody play that game with me.  But it is out of step, at least with the American values, those middle-class values that most of us were raised with.  And Governor Romney calls the President out of touch, and anti-woman, by the way but I -- out of touch?  Hey, how many of you all have a Swiss bank account?  (Laughter and applause.)  No one?  And how many of you have somewhere between $20 and $100 million in your IRA? 

AUDIENCE MEMBER:  Oh, I do.

THE VICE PRESIDENT:  All right.  I’ve got to meet you.  I’ve got to meet you.  (Applause.)  Out of touch?  He calls the President out of touch?  Look, folks, the President and I -- as I’ve said before -- we value investment and risk.  And risk should be rewarded and investment should be encouraged, but we also value work.  We also value the work of our hands and the work of our head.  We value the work of the American people because guess what -- when they work, everything is added in value, everything has a higher value. 

Look, this is the basic choice in the election.  The President and I are determined to make the economy work for everybody -- everybody.  Not just because it's fair -- literally, not just because it's fair.  That's reason enough.  But we believe, and history shows, when the middle class grows the wealthy get wealthier, the poor have a better shot, the economy is sound and the economy grows.  We believe in a fair shot and a fair shake.  Governor Romney and those who share his philosophy believe in no rules, no risk when you fail taking a risk, and no accountability. 

Folks, I want to state it very plainly -- the President and I have absolute confidence in the American people.  That's not hyperbole.  We have absolute confidence in the American people.  They have been and continue to be the most innovative and productive people on the planet.  That is a fact.  We have absolute faith because we know, given the opportunity, they have never, never, never, never failed to step up -- never.

And we also know one other thing:  We are better positioned as a nation -- and you should know we are better positioned as a nation, counting every nation -- China, every other nation in the world -- we are better positioned as a nation at this moment to be the leading economy in the 21st century, if we act responsibly, if we invest in our people, if we invest in education, if we invest in innovation, if we invest in new technologies, if we invest in alternative energy.  We have absolute confidence.

And one other thing, that although we have a long way to go, we are on the right track.  Twenty-five months of growth -- not enough, but we are on the right track.  And let me make it clear to you, and I want to say it as plainly as I can, this is no time to turn back. 

God bless you all, and may God protect our troops.  Thank you all so very much.  Thank you.  (Applause.)

END
12:47 P.M. EDT