STATE DEPARTMENT ON GLOBAL CONNECTIVITY FOR URBAN LEADERS

FROM: U.S. DEPARTMENT OF STATE

Global Connectivity for Urban Leaders
Remarks
Reta Jo Lewis
Special Representative for Global Intergovernmental Affairs
German Marshall Fund (GMF)
Washington, DC
May 21, 2013

Good afternoon everybody and thank you Geraldine for that kind introduction.

It is a sincere privilege to be with all of you today. I appreciate that you have taken the time to join this discussion about the global engagement of local leaders.

I would like to take a moment to thank the German Marshall Fund’s Transatlantic Leadership Initiative and Urban and Regional Policy Program for hosting us today. Many thanks to Geraldine and Kevin Cottrell and their teams. I would also like to thank Lora Berg for arranging this program. I have had the privilege to collaborate with Lora when she was at the State Department and it’s great to work with her again.

As the Special Representative for Global Intergovernmental Affairs, I lead the U.S. Department of State’s efforts to collaborate with state and local leaders and their counterparts abroad to meet U.S. foreign policy goals and to foster economic, cultural, and educational relationships. My office is charged with building strategic peer-to-peer relationships with U.S. state and local officials and their foreign counterparts around the world.

As you are aware, urbanization is occurring at an unprecedented rate, especially in Latin America, Asia, and Africa. Fifty-two percent of the earth’s population now lives in cities. Every week one million people move to cities. Continued rapid urbanization will lead to three billion new urban dwellers. As an article in the Economist stated in 2011, "Cities, rather than states, are becoming the islands of governance on which the future world order will be built."

In this context, pragmatic global partnerships that focus on solutions are essential to solving global challenges, such as climate change, human trafficking, poverty, food security, governance and transnational crime.

U.S. foreign policy traditionally has focused on nation-to-nation relationships. But the scope of what defines nation-to-nation conversations are shifting in the modern, more global, and more flattened world – rendering city-to-city, and state-to-state dialogues just as critical to the larger context of executing, implementing, and achieving a nation’s overarching diplomatic goals.

Building peer-to-peer relationships between state and local elected officials has a direct effect on foreign policy that often goes unrecognized. Building these relationships and encouraging these engagements at the subnational level has the potential to be a force multiplier, expanding the reach and effectiveness of soft power.

Peer-to-peer relationships provide state and local leaders around the globe with an intimate glance into the American way of life, and more importantly, into our democratic institutions and system of governance. At a more basic but equally important level, these interactions develop trust – an attribute essential to developing strong bilateral ties.

Confronting some of the most difficult global challenges will require innovative approaches to complex problems. Subnational engagement promotes the interchange of ideas and the adoption of best practices across different spheres. Hence, these peer-to-peer relationships between local leaders are critical if we are going to address difficult issues like climate change.

One of the most serious challenges that we face today is the economy. When I started this job three years ago; I reached out to local leaders in the United States and asked them how the U.S. Department of State could assist them. The number one answer was to promote economic growth within their communities. Mayors and governors lead foreign trade missions because it is in their interest do so. And, they do it with or without our help. It is in interest of our national economy to help local officials succeed in promoting their city or state, and ultimately making connections that lead to trade flows and economic growth which benefit all of us.

Subnational engagement utilizes our state and local leaders as an extraordinary source of innovation, talent, resources, and knowledge. After all, it is the states and cities that are the engines of growth at the ground level where the transition from policy to practice becomes most visible. Tapping into this resource fully employs our human capital.

Twenty-first century global challenges require us to work with new partners to collaborate and innovate globally. This is a core principal of subnational engagement, a strategy for creating partnerships for achieving modern diplomatic goals by engaging all the elements of our national power and leveraging all forms of our strength.

When former Secretary Clinton created the Office of Global Intergovernmental Affairs in 2010, she emphasized the need to utilize local leaders as a key component in the much needed, widespread, and deep-rooted efforts to take on our world’s greatest challenges. A key part of that charge is empowering subnational officials to lead their states and communities to a stable and secure future.

My job is to connect what the Federal Government does best with what state and local governments are doing and can do globally.

To that end, the Office of Global Intergovernmental Affairs, in conjunction with U.S. Embassies and State Department bureaus, has led the negotiations and secured collaboration frameworks confirming commitments to prioritize subnational engagement with: Brazil (U.S.-Brazil Memorandum of Understanding to Support State and Local Cooperation; China (Memorandum of Understanding Supporting U.S.-China Subnational Cooperation); India (U.S.-India Conversation between Cities); and Russia (Joint Statement on Strengthening U.S.-Russian Interregional Cooperation).

It is important to note that these relationships are organic. That is, cities and states are doing this on their own, because the leaders see the benefit of building these connections. It is our job to encourage and leverage what has been occurring organically to promote U.S. foreign policy.

I would like to share with you three quick examples highlighting the kind of work we do, so that you get flavor of both how the State Department is engaging and what is happing on the ground.

Brazil will host the 2014 World Cup and 2016 Olympic and Paralympic Games. In April 2012, the United States and Brazil signed a Memorandum of Understanding (MOU) to Support State and Local Cooperation. This agreement affirms our mutual resolve to strengthen and expand cooperation and encourage peer-to-peer exchanges between subnational officials and local populations. These exchanges further enable local government to bolster trade and investment, share ideas and best practices, and advance local priorities while contributing to mutual understanding between our two countries.

In support of this agreement, I have traveled to Brazil and visited almost all of the host cities and states of the 2014 World Cup and 2016 Olympic and Paralympic Games. My travel and direct contact with federal and local leaders have provided an excellent opportunity to bolster collaboration between local officials in Brazil and the United States. In addition, U.S.-Brazil cooperative efforts have focused on building economic opportunities for the U.S. private sector through Brazil’s unique position as host of these events.

With fewer than 400 days until the start of the World Cup, we are moving rapidly on several fronts to promote U.S.-Brazil cooperation to support the organization of upcoming mega-sporting events.

Earlier this month in New Orleans, my office and the State Department Bureau of Diplomatic Security co-hosted a two-day Symposium on Security for Major Sporting Events. We convened security officials from the Brazilian states which will host the 2014 World Cup Games and officials from eight U.S. federal, state, and local law enforcement agencies responsible for the organization and support of Super Bowl XLVII in New Orleans to share best practices on the coordination of the largest annual sporting event in the United States. The recent tragedy in Boston reminds us of the importance of effective collaboration with local officials on the security of major events.

In China, we were instrumental in the establishment of the U.S.-China Governors Forum in 2011. The Forum brings together Governors from both countries to discuss pressing issues and promote economic exchange. This dialogue fosters interactions that have resulted in tangible U.S. job creation.

I visited China last month where I played a role in bringing three U.S. Governors together with five Chinese provincial leaders at the third U.S.-China Governors Forum in Beijing and Tianjin. The U.S. Governors and their Chinese counterparts discussed economic and trade cooperation in order to advance U.S.-China economic cooperation at the local level. Chinese President Xi Jinping met with the U.S. and Chinese Governors on April 15, and called for deeper regional cooperation between the two countries.

In addition, California Governor Edmund G. Brown Jr. led a highly successful trade and investment mission to China in April. Multimillion-dollar business deals between Chinese and Californian companies were announced during the visit. At a reception at the U.S. Embassy in Beijing, hosted by Ambassador Gary Locke, Governor Brown announced a $1.5 billion investment partnership between a California-based developer and a China-based investor and developer that will create thousands of California jobs.

In the multilateral sphere, we were able to include local elected officials on the U.S. delegation to Rio+20. This is a reflection that issues, like sustainability, require input from all levels of government to ensure that the multilateral negotiating process is transparent and inclusive.

Local participation on the Rio+20 delegation was crucial, given that cities across the United States have adopted comprehensive sustainability programs, and are in the process of transforming themselves to greener and more efficient urban centers – be it large metropolitan areas like New York’s "PlaNYC" or Chicago’s "Climate Action Plan," or small cities like Fort Collins, Colorado’s "Sustain Fort Collins" or Austin, Texas’ "Climate Action Plan." It is important to understand what is happing on the front lines and to give local leaders a voice at the table.

So again, organizing subnational relationships promotes a deeper cultural exchange among nations; advances principals of openness, freedom, transparency, and fairness in economic growth; and assists in the creation of a sustainable future.

To recap: Why are we doing this:

o Because these relationships are there, they are happening and they provide a real benefit for our interests abroad. So we need to understand them, encourage them, and whenever possible leverage them, to promote U.S. foreign policy goals and support U.S. interests;

o Because the future leaders are there. The odds are very good that the future leaders of both China and Brazil are currently serving as elected leaders of cities, states, and provinces.

o Because some of our best ambassadors are governors and mayors. Some of the most talented, credible, and articulate representatives of our democracy are serving at the state and local level, and not leveraging their talents limits our effectiveness.

o Because in a flat world, with decreasing tariffs and expanding trade flows, the unit of economic competition is no longer the nation state, it is the metropolitan era. In a globalized world making connections to, and learning from, your competitors is central to economic growth and success.

o Because the solutions to some of the most pressing global problems will be implemented at the local level. For example, climate change may be an issue discussed at the highest levels of multilateral governance, but its effects, mitigation and adaptation are the purview of local governments. It is local government that is changing the building codes and implementing new standards. It is local government that is dealing with transportation, air quality and sustainability issues. It is local leaders who are learning to manage mega-cities. The more these leaders learn from each other, more effective solutions will be implemented.

And with that, I am happy to take your questions.

BRAZILIAN FIRM GIVEN CONTRACT TO PROVIDE AIRCRAFT TO AFGHAN AIR FORCE

FROM: U.S. DEPARTMENT OF DEFENSE
Brazilian Firm to Provide Aircraft to Afghan Air Force
American Forces Press Service

WASHINGTON, Feb. 27, 2013 - Deputy Defense Secretary Ashton B. Carter called Brazilian Minister of Defense Celso Amorim this evening to inform the Brazilian government about the decision made by the United States Air Force to award Sierra Nevada Corp./Embraer SA a $427 million contract to provide light air support aircraft and associated maintenance and training for the Afghan air force, Pentagon Press Secretary George Little said here today.

Sierra Nevada Corp. is based in Sparks, Nevada, and Embraer SA is its Brazilian subcontractor.

Under this contract, 20 aircraft are scheduled to be delivered to operational air bases in Afghanistan beginning in the summer of 2014 to conduct advanced flight training, surveillance, close air support and air interdiction missions, Little said.

This platform, he said, is critical to providing enabling support to the Afghan National Security Forces as part of United States enduring support to Afghanistan following the completion of the ISAF mission at the end of 2014.

Minister Amorim also extended his best wishes to Secretary of Defense Chuck Hagel on his first day in office, Little said.

The two leaders, Little added, noted they look forward to scheduling the next U.S.-Brazil Defense Cooperation Dialogue and continuing defense cooperation between the United States and Brazil.

U.S. STATE DEPARTMENT PROCESSES MORE VISAS IN CHINA AND BRAZIL

FROM:  U.S. STATE DEPARTMENT
State Department Processing Visas at Record Pace: More Visitors from China and Brazil Mean More American Jobs
Media Note Office of the Spokesperson Washington, DC
April 18, 2012
Earlier this year, President Obama called for a national strategy to make the United States the world’s top travel and tourism destination, generating jobs and revitalizing our economy. The Department of State is well on the way to meeting the President’s goals of increasing visitor visa processing capacity in China and Brazil by 40 percent in 2012.

Visa Surge: In Brazil, consular officers issued more than 555,000 visas in the first half of fiscal year 2012, compared to 350,000 visas during the same timeframe in 2011, an increase of 59 percent. In China, consular officers issued more than 453,000 visas in the first half of the year, compared to approximately 310,000 visas in the same timeframe in 2011, an increase of 46 percent.

Short Wait Times: At the same time, the Department of State has reduced wait times for visa interview appointments. On average, applicants wait just five days for an appointment at U.S. consulates in China. Wait times have dropped dramatically in Brazil and now average two weeks or less in Brasilia, Recife, and Rio de Janeiro, and 35 days or less in Sao Paulo.

New Consulates: To further increase visa processing capacity in Brazil, President Obama announced on April 9 that the United States will open new consulates in Belo Horizonte and Porto Alegre. These consulates will facilitate travel and trade to support economic growth in both the United States and Brazil, and will further expand the breadth and depth of the U.S.-Brazil relationship. Additionally, the Department of State is exploring whether to add visa-issuance services in Wuhan, China.

Innovative Hiring Program: In another initiative to streamline visa processing without compromising security, the first group of newly hired consular adjudicators recently arrived at U.S. consulates in Brazil and China. These adjudicators were hired under a landmark program which targeted recruits who already speak Portuguese or Mandarin. These talented employees were selected by the State Department through a rigorous screening and security process, and given the same consular training as career Foreign Service Officers. The program offers the flexibility to quickly augment our consular staff with qualified professionals.

The State Department is committed to facilitating travel to the United States as part of broader “Jobs Diplomacy” goals. Visas for legitimate travelers are an important tool to help accelerate America’s economic revival.

PRESIDENT OBAMA AT CEO SUMMIT OF THE AMERICAS

FROM:  THE WHITE HOUSE
President Barack Obama participates in the CEO Summit of the Americas panel discussion at the Hilton Hotel,Colombia, April 14, 2012. President of Brazil Dilma Rousseff and President of Colombia Juan Manuel Santos took part. (Official White House Photo by Pete Souza)
April 14, 2012



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