Tagged: MonetaryPolicyEU

Magdy Martínez-Solimán: Statement at the Policy Symposium on “Financing Asia’s Future Growth”

06 Apr 2015

Ambassador Mr.  Abulkalam Abdul Momen (PR of Bangladesh to the UN),

Ambassador Mr. Mr. Durga Prasad Bhattarai (PR of Nepal to the UN),

Ambassador Mr. Desra Percaya (PR of Indonesia to the UN) (TBC),

Mr. Lenni Montiel, Assistant Secretary-General for Economic Development, UN DESA

Mr. Shang-Jin Wei, Chief Economist, Asian Development Bank

It is my great pleasure to welcome you to this seminar on “Financing Asia’s Future Growth”. This symposium is timely and important. Timely because the third International Conference on Financing for Development, to be held in Addis Ababa, Ethiopia, in July 2015 is a historic opportunity for the international community to agree on an ambitious framework for the post-MDG era. It is also important because of the ongoing inter-governmental discussions both on FfD and on post-2015 development agenda.

I bring you warm greetings from Haoliang Xu, UNDP Regional Director for Asia and the Pacific. Mr. Xu sends his sincere and heartfelt apologies for not being able to be with you today. I am grateful for his invitation to Chair this Symposium.

I am especially pleased that this event is being jointly hosted between UNDP and the Asian Development Bank (ADB). This year’s Asian Development Outlook (ADO) will give us a reference to guide our discussions. The ADO is ADB’s flagship annual economic report, analyzing trends in and proposing forecasts for the Asia-Pacific region. ADO is smart and influential  also inside the UN’s development community and beyond.

Excellencies, distinguished delegates, Ladies and Gentlemen,

This year’s ADO has as its special theme “Financing Asia’s Future Growth.” The way in which the report approaches the challenge of financing is refreshing and extremely relevant for the broader discussion around finance for development.

In the MDG-era, financing was often conceived as tallying up the resources available from different sources (mobilized domestically as well as international private flows, ranging from FDI to remittances) available to developing countries to meet the MDGs, with the gap being filled with Official Development Assistance (ODA). Over the last 15 years, estimates abounded of the billions in ODA that would be required to meet the MDGs.

It is clear that this “gap-filling” approach is insufficient as we confront the implementation of the post-2015 agenda. The universality and broad breadth of the new agenda (from poverty eradication, to economics lifestyle changes towards sustainable patterns of production and consumption, to promoting peaceful and inclusive societies) imply that estimating gaps – which is only partially possible – will inevitable take us to amounts in the trillions of dollars. We need to think anew about how we approach the challenge of financing development. And we need to think big.

While doing so, I want to emphasize the continued importance – and value – of development aid. The Addis Ababa conference represents an opportunity for donor countries to reaffirm their longstanding commitment to allocate 0.7% of GNI to ODA as well as pledge to allocate at least 0.15-0.2% of GNI to the LDCs or more. The current draft of the Addis Ababa outcome document being considered even suggests that countries agree to meet these targets by 2020. But the post-2015 agenda cannot be achieved through aid alone. There is a need to consider other forms of international public finance for investments in communicable disease control, climate change adaptation and mitigation, science, innovation and new technologies. More public resources for climate finance are needed, but these should not come at the expense of ODA.

Even lumped together, all sources of public finance will not suffice. We need to find the right convergence between policy driven and profit led sources of development finance. Incentives are needed to ensure that private investment decisions move the world towards sustainable development aspirations. The progressive elimination of inefficient and ineffective subsidies could help to shift transportation and energy investments towards less fossil fuel intensive and more sustainable options, while releasing public resources for social and development purposes. The ADO argues that the current context of low world oil prices presents an opportunity in Asia for this type of fiscal reforms. In fact, the report shows that several countries in Asia are already seizing on this opportunity, either by reducing fossil fuel subsidies, increasing taxes on their use, or both. This is the type of policy action that sends the right incentives to people and businesses, while releasing public resources, that are important in the context of the new agenda.

Financing for development in the post-2015 era cannot be considered only in the context of ‘stable times’; there are fewer of them and we have to recognize that volatility is becoming the new normal. This is particularly relevant to Asia, a region especially vulnerable to extreme climate events. But there are many sources of risk beyond disasters, with the costs of shocks as diverse as conflict and disease outbreaks high and increasing.
And, of course, we continue to face recurrent economic crisis. Asia had a painful experience with a major financial crisis in 1997/1998. The ADO reminds us of the traumatic growth collapses that occurred in 1998: Indonesia’s economy contracted by 13 percent, the Republic of Korea’s by 6 percent, Malaysia’s by 7 percent, and Thailand by 11’s percent (from pre-crisis annual growth in excess of 7 percent in every country). The development setbacks were deep and long-lasting. But Asia also showed resilience and has put in place a range of policies to better protect countries from economic shocks. It has bounced back with energy. What we need to achieve sustainable development is for nations and communities to be resilient, not only to economic but to a wider set of shocks, so that they are able to anticipate, shape and adapt to the many shocks and challenges that can devour development gains. All development needs to be risk-informed.

Excellencies, distinguished delegates, Ladies and Gentlemen,

In this context, and without preempting the detailed presentation of the report and its special theme, I want to emphasize that the perspective taken in the ADO on how to finance Asia’s growth is particularly relevant. The challenge of financing is presented less as one of mobilizing resources (domestically or from abroad), and more as one of ensuring that the financial systems in Asia work to allocate savings to high-return and productive investments. This is the type of analysis that will enable us to think more broadly about financing, as a challenge of unlocking funding by pursuing policies that enable more efficient and effective resource allocation.

Excellencies, distinguished delegates, Ladies and Gentlemen,

Allow me, before I introduce our speakers, to elaborate briefly on the important of financing for the achievement of post 2015 as well as the importance of inclusive financial sector for the eradication of extreme poverty and reduction of inequality.

Today 2.5 billion adults – more than half of the world’s working adults – are excluded from formal financial services. This is most acute among low-income populations in developing countries, where approximately 80% of poor people do not have access. Access to well-functioning and efficient financial services can empower poor women and men. It is now well-established that giving low-income households access to formal financial services can help reduce poverty and inequality.

In the Pacific, financial inclusion is particularly challenging, where less than 10 percent of adults seem to have access to basic financial services. Challenging geography, poor infrastructure and the high costs associated with delivering services to sparse populations are barriers in this region. UNDP and UNCDF are therefore jointly implementing a Pacific-wide Financial Inclusion Programme (PFIP), which helps low-income households to gain access to quality and affordable savings, insurance, credit and other financial services and financial education. The programme, with funding from the Australian Government, the European Union and the New Zealand Government, also disburses grants to financial service providers. The programme aims to add one million Pacific Islanders to the formal financial sector by 2019 by spearheading policy and regulatory initiatives, facilitating access to appropriate financial services and delivery channels and by strengthening financial competencies and consumer empowerment.

As we consider the importance of financial systems to help finance the post-2015 agenda and the need to ensure financial inclusion, UNDP’s programme in the Pacific is an illustration of the comprehensive and inclusive development approaches that we will need to pursue to finance development.

Let me take a moment to introduce our guests here.

We have with us today, Mr. Shang-Jin Wei, ADB’s Chief Economist. Mr. Wei is a key spokesperson for ADB and oversees the Economics and Research Department. Mr. Wei previously served as Professor of Finance and Economics at Columbia University’s Graduate School of Business. Before joining Columbia University, he held senior positions at the IMF, at the Brookings Institution, and at Harvard University’s Kennedy School of Government.

Ambassador Mr. Abulkalam Abdul Momen, Permanent Representative of Bangladesh to the United Nations, New York, has been serving in this role since August 2009. Prior to that, he served as Chairman of the Department of Economics and Business Administration, Framingham State College. He also worked earlier in senior positions in the government of Bangladesh.

Ambassador Mr. Desra Percaya, Permanent Representative of Indonesia to the United Nations, New York, has been serving in this role since Feb 2012. Prior to this, Dr. Percaya was Indonesia’s Deputy Permanent Representative to the United Nations in Geneva. He has held a variety of posts related to multilateral diplomacy and international security since joining the Ministry of Foreign Affairs in 1986.

We have with us today Ambassador Mr. Durga Prasad Bhattarai, Permanent Representative of Nepal to the United Nations, New York. Prior to this, he served as the Permanent Secretary of Nepal’s Ministry of Foreign Affairs. A career diplomat, Mr. Bhattarai held senior posts in Nepal’s foreign service and government.

Finally, we have with us Mr. Lenni Montiel, the Assistant Secretary-General for Economic Development, at UN DESA. Prior to his appointment, Mr. Montiel was the Director for Economic and Social Affairs in the Executive Office of the Secretary-General, preceded by a distinguished career in development as a colleague of ours in UNDP.

Thank you.

Remarks by the President in Year-End Press Conference

The White House

Office of the Press Secretary

For Immediate Release

December 19, 2014

James S. Brady Press Briefing Room

1:53 P.M. EST

THE PRESIDENT:  Hello, everybody.  We’ve really got a full house today, huh?  Well, all I want for Christmas is to take your questions.  (Laughter.)  But first let me say a little bit about this year. 

In last year’s final press conference, I said that 2014 would be a year of action and would be a breakthrough year for America.  And it has been.  Yes, there were crises that we had to tackle around the world, many that were unanticipated.  We have more work to do to make sure our economy, our justice system, and our government work not just for the few, but for the many.  But there is no doubt that we can enter into the New Year with renewed confidence that America is making significant strides where it counts.

The steps that we took early on to rescue our economy and rebuild it on a new foundation helped make 2014 the strongest year for job growth since the 1990s.  All told, over a 57-month streak, our businesses have created nearly 11 million new jobs.  Almost all the job growth that we’ve seen have been in full-time positions.  Much of the recent pickup in job growth has been in higher-paying industries.  And in a hopeful sign for middle-class families, wages are on the rise again.

Our investments in American manufacturing have helped fuel its best stretch of job growth also since the 1990s.  America is now the number-one producer of oil, the number-one producer of natural gas.  We’re saving drivers about 70 cents a gallon at the pump over last Christmas.  And effectively today, our rescue of the auto industry is officially over.  We’ve now repaid taxpayers every dime and more of what my administration committed, and the American auto industry is on track for its strongest year since 2005.  And we’ve created about half a million new jobs in the auto industry alone.

Thanks to the Affordable Care Act, about 10 million Americans have gained health insurance just this past year.  Enrollment is beginning to pick up again during the open enrollment period.  The uninsured rate is at a near record low.  Since the law passed, the price of health care has risen at its slowest rate in about 50 years.  And we’ve cut our deficits by about two-thirds since I took office, bringing them to below their 40-year average.

Meanwhile, around the world, America is leading.  We’re leading the coalition to degrade and ultimately destroy ISIL — a coalition that includes Arab partners.  We’re leading the international community to check Russian aggression in Ukraine. We are leading the global fight to combat Ebola in West Africa, and we are preventing an outbreak from taking place here at home. We’re leading efforts to address climate change, including last month’s joint announcement with China that’s already jumpstarting new progress in other countries.  We’re writing a new chapter in our leadership here in the Americas by turning a new page on our relationship with the Cuban people. 

And in less than two weeks, after more than 13 years, our combat mission in Afghanistan will be over.  Today, more of our troops are home for the holidays than any time in over a decade. Still, many of our men and women in uniform will spend Christmas in harm’s way.  And they should know that the country is united in support of you and grateful not only to you but also to your families.

The six years since the crisis have demanded hard work and sacrifice on everybody’s part.  But as a country, we have every right to be proud of what we’ve accomplished — more jobs; more people insured; a growing economy; shrinking deficits; bustling industry; booming energy.  Pick any metric that you want — America’s resurgence is real.  We are better off. 

I’ve always said that recovering from the crisis of 2008 was our first order of business, and on that business, America has outperformed all of our other competitors.  Over the past four years, we’ve put more people back to work than all other advanced economies combined.  We’ve now come to a point where we have the chance to reverse an even deeper problem, the decades-long erosion of middle-class jobs and incomes, and to make sure that the middle class is the engine that powers our prosperity for decades to come. 

To do that, we’re going to have to make some smart choices; we’ve got to make the right choices.  We’re going to have to invest in the things that secure even faster growth in higher-paying jobs for more Americans.  And I’m being absolutely sincere when I say I want to work with this new Congress to get things done, to make those investments, to make sure the government is working better and smarter.  We’re going to disagree on some things, but there are going to be areas of agreement and we’ve got to be able to make that happen.  And that’s going to involve compromise every once in a while, and we saw during this lame duck period that perhaps that spirit of compromise may be coming to the fore.   

In terms of my own job, I’m energized, I’m excited about the prospects for the next couple of years, and I’m certainly not going to be stopping for a minute in the effort to make life better for ordinary Americans.  Because, thanks to their efforts, we really do have a new foundation that’s been laid.  We are better positioned than we have been in a very long time.  A new future is ready to be written.  We’ve set the stage for this American moment.  And I’m going to spend every minute of my last two years making sure that we seize it.

My presidency is entering the fourth quarter; interesting stuff happens in the fourth quarter.  And I’m looking forward to it.  But going into the fourth quarter, you usually get a timeout.  I’m now looking forward to a quiet timeout — Christmas with my family.  So I want to wish everybody a Merry Christmas, a Happy Hanukkah, a Happy New Year.  I hope that all of you get some time to spend with your families as well, because one thing that we share is that we’re away too much from them.

And now, Josh has given me the “who’s been naughty and who’s been nice” list — (laughter) — and I’m going to use it to take some questions.  And we’re going to start with Carrie Budoff Brown of Politico.  There you go, Carrie.

Q    Thank you, Mr. President.  I’ll start on North Korea — that seems to be the biggest topic today.  What does a proportional response look like to the Sony hack?  And did Sony make the right decision in pulling the movie?  Or does that set a dangerous precedent when faced with this kind of situation?

THE PRESIDENT:  Well, let me address the second question first.  Sony is a corporation.  It suffered significant damage.  There were threats against its employees.  I am sympathetic to the concerns that they faced.  Having said all that, yes, I think they made a mistake.
 
In this interconnected, digital world, there are going to be opportunities for hackers to engage in cyber assaults both in the private sector and the public sector.  Now, our first order of business is making sure that we do everything to harden sites and prevent those kinds of attacks from taking place.  When I came into office, I stood up a cybersecurity interagency team to look at everything that we could at the government level to prevent these kinds of attacks.  We’ve been coordinating with the private sector, but a lot more needs to be done.  We’re not even close to where we need to be.
 
And one of the things in the New Year that I hope Congress is prepared to work with us on is strong cybersecurity laws that allow for information-sharing across private sector platforms, as well as the public sector, so that we are incorporating best practices and preventing these attacks from happening in the first place.

But even as we get better, the hackers are going to get better, too.  Some of them are going to be state actors; some of them are going to be non-state actors.  All of them are going to be sophisticated and many of them can do some damage. 

We cannot have a society in which some dictator someplace can start imposing censorship here in the United States.  Because if somebody is able to intimidate folks out of releasing a satirical movie, imagine what they start doing when they see a documentary that they don’t like, or news reports that they don’t like.  Or even worse, imagine if producers and distributors and others start engaging in self-censorship because they don’t want to offend the sensibilities of somebody whose sensibilities probably need to be offended.
 
So that’s not who we are.  That’s not what America is about.
Again, I’m sympathetic that Sony as a private company was worried about liabilities, and this and that and the other.  I wish they had spoken to me first.  I would have told them, do not get into a pattern in which you’re intimidated by these kinds of criminal attacks.  Imagine if, instead of it being a cyber-threat, somebody had broken into their offices and destroyed a bunch of computers and stolen disks.  Is that what it takes for suddenly you to pull the plug on something?

So we’ll engage with not just the film industry, but the news industry and the private sector around these issues.  We already have.  We will continue to do so.  But I think all of us have to anticipate occasionally there are going to be breaches like this.  They’re going to be costly.  They’re going to be serious.  We take them with the utmost seriousness.  But we can’t start changing our patterns of behavior any more than we stop going to a football game because there might be the possibility of a terrorist attack; any more than Boston didn’t run its marathon this year because of the possibility that somebody might try to cause harm.  So let’s not get into that way of doing business.

Q    Can you just say what the response would be to this attack?  Wwould you consider taking some sort of symbolic step like watching the movie yourself or doing some sort of screening here that —

THE PRESIDENT:  I’ve got a long list of movies I’m going to be watching.  (Laughter.)

Q    Will this be one of them?

THE PRESIDENT:  I never release my full movie list. 

But let’s talk of the specifics of what we now know.  The FBI announced today and we can confirm that North Korea engaged in this attack.  I think it says something interesting about North Korea that they decided to have the state mount an all-out assault on a movie studio because of a satirical movie starring Seth Rogen and James Flacco [Franco].  (Laughter.)  I love Seth and I love James, but the notion that that was a threat to them I think gives you some sense of the kind of regime we’re talking about here.

They caused a lot of damage, and we will respond.  We will respond proportionally, and we’ll respond in a place and time and manner that we choose.  It’s not something that I will announce here today at a press conference.

More broadly, though, this points to the need for us to work with the international community to start setting up some very clear rules of the road in terms of how the Internet and cyber operates.  Right now, it’s sort of the Wild West.  And part of the problem is, is you’ve got weak states that can engage in these kinds of attacks, you’ve got non-state actors that can do enormous damage.  That’s part of what makes this issue of cybersecurity so urgent.

Again, this is part of the reason why it’s going to be so important for Congress to work with us and get a actual bill passed that allows for the kind of information-sharing we need.  Because if we don’t put in place the kind of architecture that can prevent these attacks from taking place, this is not just going to be affecting movies, this is going to be affecting our entire economy in ways that are extraordinarily significant.

And, by the way, I hear you’re moving to Europe.  Where you going to be?

Q    Brussels. 

THE PRESIDENT:  Brussels.

Q    Yes.  Helping Politico start a new publication. 

THE PRESIDENT:  Well, congratulations. 

Q    I’ve been covering you since the beginning.

THE PRESIDENT:  Well, I think —

Q    It’s been a long road for the both of us.

THE PRESIDENT:  I think there’s no doubt that what Belgium needs is a version of Politico.  (Laughter.) 

Q    I’ll take that as an endorsement. 

THE PRESIDENT:  The waffles are delicious there, by the way. 
Cheryl Bolen.  You’ve been naughty.  (Laughter.)  Cheryl, go ahead.

Q    Thank you, Mr. President.  Looking ahead to your work with Congress next year, you’ve mentioned as an area of possible compromise tax reform.  And so I am wondering, do you see a Republican Congress as presenting a better opportunity for actually getting tax reform next year?  Will you be putting out a new proposal?  Are you willing to consider both individual and corporate side of the tax ledger there?  And also, are you still concerned about corporate inversions?

THE PRESIDENT:  I think an all-Democratic Congress would have provided an even better opportunity for tax reform.  But I think, talking to Speaker Boehner and Leader McConnell that they are serious about wanting to get some things done.  The tax area is one area where we can get things done.  And I think in the coming weeks leading up to the State of Union, there will be some conversations at the staff levels about what principles each side are looking at.

I can tell you broadly what I’d like to see.  I’d like to see more simplicity in the system.  I’d like to see more fairness in the system.  With respect to the corporate tax reform issue, we know that there are companies that are paying the full freight — 35 percent — higher than just about any other company on Earth, if you’re paying 35 percent, and then there are other companies that are paying zero because they’ve got better accountants or lawyers.  That’s not fair. 

There are companies that are parking money outside the country because of tax avoidance.  We think that it’s important that everybody pays something if, in fact, they are effectively headquartered in the United States.  In terms of corporate inversion, those are situations where companies really are headquartered here but, on paper, switch their headquarters to see if they can avoid paying their fair share of taxes.  I think that needs to be fixed. 

So, fairness, everybody paying their fair share, everybody taking responsibility I think is going to be very important. 

Some of those principles I’ve heard Republicans say they share.  How we do that — the devil is in the details.  And I’ll be interested in seeing what they want to move forward.  I’m going to make sure that we put forward some pretty specific proposals building on what we’ve already put forward.

One other element of this that I think is important is — and I’ve been on this hobby horse now for six years.  (Audience member sneezes.)  Bless you.  We’ve got a lot of infrastructure we’ve got to rebuild in this country if we’re going to be competitive — roads, bridges, ports, airports, electrical grids, water systems, sewage systems.  We are way behind. 

And early on we indicated that there is a way of us potentially doing corporate tax reform, lowering rates, eliminating loopholes so everybody is paying their fair share, and during that transition also providing a mechanism where we can get some infrastructure built.  I’d like to see us work on that issue as well.  Historically, obviously, infrastructure has not been a Democratic or a Republican issue, and I’d like to see if we can return to that tradition.

Julie Pace.

Q    Thank you, Mr. President.  I wanted to ask about Cuba. What would you say to dissidents or democracy advocates inside Cuba who fear that the policy changes you announced this week could give the Castro regime economic benefits without having to address human rights or their political system?  When your administration was lifting sanctions on Myanmar you sought commitments of reform.  Why not do the same with Cuba?

And if I could just follow up on North Korea.  Do you have any indication that North Korea was acting in conjunction with another country, perhaps China?

THE PRESIDENT:  We’ve got no indication that North Korea was acting in conjunction with another country.

With respect to Cuba, we are glad that the Cuban government have released slightly over 50 dissidents; that they are going to be allowing the International Committee of the Red Cross and the United Nations human rights agencies to operate more freely inside of Cuba and monitor what is taking place.

I share the concerns of dissidents there and human rights activists that this is still a regime that represses its people. And as I said when I made the announcement, I don’t anticipate overnight changes, but what I know deep in my bones is that if you’ve done the same thing for 50 years and nothing has changed, you should try something different if you want a different outcome.
 
And this gives us an opportunity for a different outcome, because suddenly Cuba is open to the world in ways that it has not been before.  It’s open to Americans traveling there in ways that it hasn’t been before.  It’s open to church groups visiting their fellow believers inside of Cuba in ways they haven’t been before.  It offers the prospect of telecommunications and the Internet being more widely available in Cuba in ways that it hasn’t been before.

And over time, that chips away at this hermetically sealed society, and I believe offers the best prospect then of leading to greater freedom, greater self-determination on the part of the Cuban people. 

I think it will happen in fits and starts.  But through engagement, we have a better chance of bringing about change then we would have otherwise.

Q    Do you have a goal for where you see Cuba being at the end of your presidency?

THE PRESIDENT:  I think it would be unrealistic for me to map out exactly where Cuba will be.  But change is going to come to Cuba.  It has to.  They’ve got an economy that doesn’t work.  They’ve been reliant for years first on subsidies from the Soviet Union, then on subsidies from Venezuela.  Those can’t be sustained.  And the more the Cuban people see what’s possible, the more interested they are going to be in change. 

But how societies change is country-specific, it’s culturally specific.  It could happen fast; it could happen slower than I’d like; but it’s going to happen.  And I think this change in policy is going to advance that.

Lesley Clark.

Q    Thank you, Mr. President.  I had a number of questions on Cuba as well.  Appreciate that.  I wanted to —

THE PRESIDENT:  Do I have to write all these down?  How many are there?  (Laughter.)  “A number” sounded intimidating.

Q    As quick as I can.  As quick as I can.  I wanted to see if you got an assurances from the Cuban government that it would not revert to the same sort of — sabotage the deal, as it has in the past when past Presidents had made similar overtures to the government.
 
THE PRESIDENT:  Meaning?  Be specific.  What do you mean?

Q    When the Clinton administration made some overtures, they shot down planes.  They sort of had this pattern of doing provocative — provocative events.
 
THE PRESIDENT:  Okay, so just general provocative activity.

Q    Provocative activities any time the U.S. has sort of reached out a hand to them.  I wanted to see what is your knowledge of whether Fidel Castro — did he have any role in the talks?  When you talked to President Raul Castro, did Fidel Castro’s name come up?  Or did you ask about him?  How he’s doing?  People haven’t seen him in a while.  Given the deep opposition from some Republicans in Congress to lifting the embargo, to an embassy, to any of the changes that you’re doing, are you going to personally get involved in terms of talking to them about efforts that they want to do to block money on a new embassy?

THE PRESIDENT:  All right, Lesley, I think I’m going to cut you off here.  (Laughter.)  This is taking up a lot of time.

Q    Okay, all right.

THE PRESIDENT:  All right.  So, with respect to sabotage, I mean, my understanding of the history, for example, of the plane being shot down, it’s not clear that that was the Cuban government purposely trying to undermine overtures by the Clinton administration.  It was a tragic circumstance that ended up collapsing talks that had begun to take place.  I haven’t seen a historical record that suggests that they shot the plane down specifically in order to undermine overtures by the Clinton government.

I think it is not precedented for the President of the United States and the President of Cuba to make an announcement at the same time that they are moving towards normalizing relations.  So there hasn’t been anything like this in the past. That doesn’t meant that over the next two years we can anticipate them taking certain actions that we may end up finding deeply troubling either inside of Cuba or with respect to their foreign policy.  And that could put significant strains on the relationship.  But that’s true of a lot of countries out there where we have an embassy.  And the whole point of normalizing relations is that it gives us a greater opportunity to have influence with that government than not. 

So I would be surprised if the Cuban government purposely tries to undermine what is now effectively its own policy.  I wouldn’t be surprised if they take at any given time actions that we think are a problem.  And we will be in a position to respond to whatever actions they take the same way we do with a whole range of countries around the world when they do things we think are wrong.  But the point is, is that we will be in a better position I think to actually have some influence, and there may be carrots as well as sticks that we can then apply.

The only way that Fidel’s name came up — I think I may have mentioned this in the Davie Muir article — interview that I did — was I delivered a fairly lengthy statement at the front end about how we’re looking forward to a new future in the relationship between our two countries, but that we are going to continue to press on issues of democracy and human rights, which we think are important. 

My opening remarks probably took about 15 minutes, which on the phone is a pretty long time.  And at the end of that, he said, Mr. President, you’re still a young man.  Perhaps you have the — at the end of my remarks I apologized for taking such a long time, but I wanted to make sure that before we engaged in the conversation he was very clear about where I stood.  He said, oh, don’t worry about it, Mr. President, you’re still a young man and you have still the chance to break Fidel’s record — he once spoke seven hours straight.  (Laughter.) 

And then, President Castro proceeded to deliver his own preliminary remarks that last at least twice as long as mine.  (Laughter.)  And then I was able to say, obviously it runs in the family.  But that was the only discussion of Fidel Castro that we had. 

I sort of forgot all the other questions.  (Laughter.) 

Q    I have a few more if you’re — how personally involved are you going to get in —

THE PRESIDENT:  With respect to Congress?  We cannot unilaterally bring down the embargo.  That’s codified in the Libertad Act.  And what I do think is going to happen, though, is there’s going to be a process where Congress digests it.  There are bipartisan supporters of our new approach, there are bipartisan detractors of this new approach.  People will see how the actions we take unfold.  And I think there’s going to be a healthy debate inside of Congress. 

And I will certainly weigh in.  I think that ultimately we need to go ahead and pull down the embargo, which I think has been self-defeating in advancing the aims that we’re interested in.  But I don’t anticipate that that happens right away.  I think people are going to want to see how does this move forward before there’s any serious debate about whether or not we would make major shifts in the embargo.

Roberta Rampton.

Q    I want to follow on that by asking, under what conditions would you meet with President Castro in Havana?  Would you have certain preconditions that you would want to see met before doing that?  And on the hack, I know that you said that you’re not going to announce your response, but can you say whether you’re considering additional economic or financial sanctions on North Korea?  Can you rule out the use of military force or some kind of cyber hit of your own?

THE PRESIDENT:  I think I’m going to leave it where I left it, which is we just confirmed that it was North Korea; we have been working up a range of options.  They will be presented to me.  I will make a decision on those based on what I believe is proportional and appropriate to the nature of this crime.

With respect to Cuba, we’re not at a stage here where me visiting Cuba or President Castro coming to the United States is in the cards.  I don’t know how this relationship will develop over the next several years.  I’m a fairly young man so I imagine that at some point in my life I will have the opportunity to visit Cuba and enjoy interacting with the Cuban people.  But there’s nothing specific where we’re trying to target some sort of visit on my part.

Colleen McCain Nelson.

Q    Thank you, Mr. President.

THE PRESIDENT:  There you are.

Q    You spoke earlier about 2014 being a breakthrough year, and you ended the year with executive actions on Cuba and immigration and climate change.  But you didn’t make much progress this year on your legislative agenda.  And some Republican lawmakers have said they’re less inclined to work with you if you pursue executive actions so aggressively.  Are you going to continue to pursue executive actions if that creates more roadblocks for your legislative agenda?  Or have you concluded that it’s not possible to break the fever in Washington and the partisan gridlock here?

THE PRESIDENT:  I think there are real opportunities to get things done in Congress.  As I said before, I take Speaker Boehner and Mitch McConnell at their words that they want to get things done.  I think the American people would like to see us get some things done.  The question is going to be are we able to separate out those areas where we disagree and those areas where we agree.  I think there are going to be some tough fights on areas where we disagree. 

If Republicans seek to take health care away from people who just got it, they will meet stiff resistance from me.  If they try to water down consumer protections that we put in place in the aftermath of the financial crisis, I will say no.  And I’m confident that I’ll be able to uphold vetoes of those types of provisions.  But on increasing American exports, on simplifying our tax system, on rebuilding our infrastructure, my hope is that we can get some things done. 

I’ve never been persuaded by this argument that if it weren’t for the executive actions they would have been more productive.  There’s no evidence of that.  So I intend to continue to do what I’ve been doing, which is where I see a big problem and the opportunity to help the American people, and it is within my lawful authority to provide that help, I’m going to do it.  And I will then, side-by-side, reach out to members of Congress, reach out to Republicans, and say, let’s work together; I’d rather do it with you.

Immigration is the classic example.  I was really happy when the Senate passed a bipartisan, comprehensive immigration bill.  And I did everything I could for a year and a half to provide Republicans the space to act, and showed not only great patience, but flexibility, saying to them, look, if there are specific changes you’d like to see, we’re willing to compromise, we’re willing to be patient, we’re willing to work with you.  Ultimately it wasn’t forthcoming.

And so the question is going to be I think if executive actions on areas like minimum wage, or equal pay, or having a more sensible immigration system are important to Republicans, if they care about those issues, and the executive actions are bothering them, there is a very simple solution, and that is:  Pass bills.  And work with me to make sure I’m willing to sign those bills. 

Because both sides are going to have to compromise.  On most issues, in order for their initiatives to become law, I’m going to have sign off.  And that means they have to take into account the issues that I care about, just as I’m going to have to take into account the issues that they care about.
 
All right.  I think this is going to be our last question.  Juliet Eilperin.  There you go.
 
Q    Thanks so much.  So one of the first bills that Mitch McConnell said he will send to you is one that would authorize the construction of the Keystone XL pipeline.  When you talked about this in the past, you’ve minimized the benefits and you highlighted some of the risks associated with that project.  I’m wondering if you could tell us both what you would do when faced with that bill, given the Republican majority that we’ll have in both chambers.  And also, what do you see as the benefits?  And given the precipitous drop we’ve seen in oil prices recently, does that change the calculus in terms of how it will contribute to climate change, and whether you think it makes sense to go ahead with that project?

THE PRESIDENT:  Well, I don’t think I’ve minimized the benefits, I think I’ve described the benefits.  At issue in Keystone is not American oil.  It is Canadian oil that is drawn out of tar sands in Canada.  That oil currently is being shipped out through rail or trucks, and it would save Canadian oil companies and the Canadian oil industry an enormous amount of money if they could simply pipe it all the way through the United States down to the Gulf.  Once that oil gets to the Gulf, it is then entering into the world market, and it would be sold all around the world. 

So there’s no — I won’t say “no” — there is very little impact, nominal impact, on U.S. gas prices — what the average American consumer cares about — by having this pipeline come through.  And sometimes the way this gets sold is, let’s get this oil and it’s going to come here.  And the implication is, is that’s going to lower gas prices here in the United States.  It’s not.  There’s a global oil market.  It’s very good for Canadian oil companies and it’s good for the Canadian oil industry, but it’s not going to be a huge benefit to U.S. consumers.  It’s not even going to be a nominal benefit to U.S. consumers.
 
Now, the construction of the pipeline itself will create probably a couple thousand jobs.  Those are temporary jobs until the construction actually happens.  There’s probably some additional jobs that can be created in the refining process down in the Gulf.  Those aren’t completely insignificant — it’s just like any other project.  But when you consider what we could be doing if we were rebuilding our roads and bridges around the country — something that Congress could authorize — we could probably create hundreds of thousands of jobs, or a million jobs. So if that’s the argument, there are a lot more direct ways to create well-paying Americans construction jobs.
 
And then, with respect to the cost, all I’ve said is that I want to make sure that if, in fact, this project goes forward, that it’s not adding to the problem of climate change, which I think is very serious and does impose serious costs on the American people — some of them long term, but significant costs nonetheless.  If we’ve got more flooding, more wildfires, more drought, there are direct economic impacts on that. 

And as we’re now rebuilding after Sandy, for example, we’re having to consider how do we increase preparedness in how we structure infrastructure and housing, and so forth, along the Jersey Shore.  That’s an example of the kind of costs that are imposed, and you can put a dollar figure on it.

So, in terms of process, you’ve got a Nebraska judge that’s still determining whether or not the new path for this pipeline is appropriate.  Once that is resolved, then the State Department will have all the information it needs to make its decision. 

But I’ve just tried to give this perspective, because I think that there’s been this tendency to really hype this thing as some magic formula to what ails the U.S. economy, and it’s hard to see on paper where exactly they’re getting that information from.

In terms of oil prices and how it impacts the decision, I think that it won’t have a significant impact except perhaps in the minds of folks — when gas prices are lower, maybe they’re less susceptible to the argument that this is the answer to lowering gas prices.  But it was never going to be the answer to lowering gas prices, because the oil that would be piped through the Keystone pipeline would go into the world market.  And that’s what determines oil prices, ultimately.

Q    And in terms of Congress forcing your hand on this, is this something where you clearly say you’re not going to let Congress force your hand on whether to approve or disapprove of this?

THE PRESIDENT:  I’ll see what they do.  We’ll take that up in the New Year.

Q    Any New Year’s resolutions?

THE PRESIDENT:  I’ll ask — April, go ahead. 

Q    Thank you, Mr. President.  Last question, I guess.  (Laughter.)  Six years ago this month, I asked you what was the state of black America in the Oval Office, and you said it was the “the best of times and the worst of times.”  You said it was the best of times in the sense that there was — has never been more opportunity for African Americans to receive a good education, and the worst of times for unemployment and the lack of opportunity.  We’re ending 2014.  What is the state of black America as we talk about those issues as well as racial issues in this country?

THE PRESIDENT:  Like the rest of America, black America in the aggregate is better off now than it was when I came into office.  The jobs that have been created, the people who’ve gotten health insurance, the housing equity that’s been recovered, the 401 pensions that have been recovered — a lot of those folks are African American.  They’re better off than they were.

The gap between income and wealth of white and black America persists.  And we’ve got more work to do on that front.  I’ve been consistent in saying that this is a legacy of a troubled racial past of Jim Crow and slavery.  That’s not an excuse for black folks.  And I think the overwhelming majority of black people understand it’s not an excuse.  They’re working hard. They’re out there hustling and trying to get an education, trying to send their kids to college.  But they’re starting behind, oftentimes, in the race.

And what’s true for all Americans is we should be willing to provide people a hand up — not a handout, but help folks get that good early childhood education, help them graduate from high school, help them afford college.  If they do, they’re going to be able to succeed, and that’s going to be good for all of us.

And we’ve seen some progress.  The education reforms that we’ve initiated are showing measurable results.  We have the highest high school graduation that we’ve seen in a very long time.  We are seeing record numbers of young people attending college.  In many states that have initiated reforms, you’re seeing progress in math scores and reading scores for African American and Latino students as well as the broader population.  But we’ve still got more work to go.

Now, obviously, how we’re thinking about race relations right now has been colored by Ferguson, the Garner case in New York, a growing awareness in the broader population of what I think many communities of color have understood for some time, and that is that there are specific instances at least where law enforcement doesn’t feel as if it’s being applied in a colorblind fashion. 

The task force that I formed is supposed to report back to me in 90 days — not with a bunch of abstract musings about race relations, but some really concrete, practical things that police departments and law enforcement agencies can begin implementing right now to rebuild trust between communities of color and the police department.

And my intention is to, as soon as I get those recommendations, to start implementing them.  Some of them we’ll be able to do through executive action.  Some of them will require congressional action.  Some of them will require action on the part of states and local jurisdictions. 

But I actually think it’s been a healthy conversation that we’ve had.  These are not new phenomenon.  The fact that they’re now surfacing, in part because people are able to film what have just been, in the past, stories passed on around a kitchen table, allows people to make their own assessments and evaluations.  And you’re not going to solve a problem if it’s not being talked about.

In the meantime, we’ve been moving forward on criminal justice reform issues more broadly.  One of the things I didn’t talk about in my opening statement is the fact that last year was the first time in 40 years where we had the federal prison population go down and the crime rate go down at the same time, which indicates the degree to which it’s possible for us to think smarter about who we’re incarcerating, how long we’re incarcerating, how are we dealing with nonviolent offenders, how are we dealing with drug offenses, diversion programs, drug courts.  We can do a better job of — and save money in the process by initiating some of these reforms.  And I’ve been really pleased to see that we’ve had Republicans and Democrats in Congress who are interested in these issues as well.

The one thing I will say — and this is going to be the last thing I say — is that one of the great things about this job is you get to know the American people.  I mean, you meet folks from every walk of life and every region of the country, and every race and every faith.  And what I don’t think is always captured in our political debates is the vast majority of people are just trying to do the right thing, and people are basically good and have good intentions.  Sometimes our institutions and our systems don’t work as well as they should.  Sometimes you’ve got a police department that has gotten into bad habits over a period of time and hasn’t maybe surfaced some hidden biases that we all carry around.  But if you offer practical solutions, I think people want to fix these problems.  It’s not — this isn’t a situation where people feel good seeing somebody choked and dying.  I think that troubles everybody.  So there’s an opportunity of all of us to come together and to take a practical approach to these problems.

And I guess that’s my general theme for the end of the year — which is we’ve gone through difficult times.  It is your job, press corps, to report on all the mistakes that are made and all the bad things that happen and the crises that look like they’re popping.  And I understand that.  But through persistent effort and faith in the American people, things get better.  The economy has gotten better.  Our ability to generate clean energy has gotten better.  We know more about how to educate our kids.  We solved problems.  Ebola is a real crisis; you get a mistake in the first case because it’s not something that’s been seen before — we fix it.  You have some unaccompanied children who spike at a border, and it may not get fixed in the time frame of the news cycle, but it gets fixed. 

And part of what I hope as we reflect on the New Year this should generate is some confidence.  America knows how to solve problems.  And when we work together, we can’t be stopped. 

And now I’m going to go on vacation.  Mele Kalikimaka, everybody.  (Laughter.)  Mahalo.  Thank you, everybody.

END
2:45 P.M. EST

STATE OF THE NATION ADDRESS BY HIS EXCELLENCY LT. GEN. SERETSE KHAMA IAN KHAMA,

STATE OF THE NATION ADDRESS BY HIS EXCELLENCY LT. GEN. SERET…

13/11/14

1. Madam Speaker, before we begin may I request that we observe a moment of silence for those of our citizens who have departed from us during the past year. Thank you. 2. Honourable Members, it is my pleasure to once more present an updated assessment of how Government intends to move Botswana forward by seizing opportunities to secure our future. 3. As this is the first session of the 11th Parliament, let me preface my remarks by welcoming the newly elected members of this Assembly. Let me further congratulate you Madam Speaker on your own election.

STATE OF THE NATION ADDRESS BY HIS EXCELLENCY LT. GEN. SERETSE KHAMA IAN KHAMA, PRESIDENT OF THE REPUBLIC OF BOTSWANA, TO THE FIRST SESSION OF THE ELEVENTH PARLIAMENT – “MOVING BOTSWANA FORWARD”

 

INTRODUCTION

 

1. Madam Speaker, before we begin may I request that we observe a moment of silence for those of our citizens who have departed from us during the past year. Thank you.

 

2. Honourable Members, it is my pleasure to once more present an updated assessment of how Government intends to move Botswana forward by seizing opportunities to secure our future.

 

3. As this is the first session of the 11th Parliament, let me preface my remarks by welcoming the newly elected members of this Assembly.  Let me further congratulate you Madam Speaker on your own election.

 

4. Today’s gathering is an outcome of our 11th consecutive general election. As is our tradition, the ballot was conducted in a peaceful, free and fair manner. For this we can once more thank Batswana in general, as well as the Independent Electoral Commission (IEC) and other individuals and organisations that helped to ensure the poll’s success.

 

5. In any democracy elections are the means to the greater end of forming a Government capable of translating the popular will into public service delivery. We who have the honour of sitting in this House are accountable to the hundreds of thousands who entrusted us with their votes. Although divided in their choices, the voters were united by a shared desire for a better future. It is, therefore, our responsibility to ensure that together we deliver that future by at all times putting the national interest before our own.

 

6. Last month my party, the Botswana Democratic Party, was re‐elected on the basis of a detailed manifesto that promised to secure our common future by building on our past achievements. Today, before this House I reaffirm our commitment to honour that pledge.

 

7. In as much as we recognise that a government of and by the people is not an event but a process; this administration shall continue to engage Batswana across the country about their concerns through various fora and media, from the venerable realm of dikgotla to the digital world of interactive online communication. It was as a result of wide-ranging consultation that our manifesto was predicated on what we understood to be our citizens’ core aspirations. These include achieving:

 

• Job creation for sustainable livelihoods and income generation;

• Food security through continued agricultural renewal;

• Expanded access to land and housing ownership;

• Access to world-class quality education that caters to current and future needs;

• Citizen, including youth, economic empowerment;

• Dignity for all through the eradication of poverty;

• Zero tolerance for corruption in all of its manifestations;

• Elimination of mother-to-child transmission of HIV; and

• Government reform that leverages on the application of new technologies. 

 

8. Each of these commitments is based on realistic analysis of where our country is and needs to go in order to meet the reasonable expectations of its people, while improving our global standing in an ever more competitive world. Taken together they are consistent with our broader vision of achieving inclusive sustainable development that upholds the dignity of all.

 

ECONOMIC OUTLOOK

 

9. Madam Speaker, owing to the prudent economic and financial management by my Government, the country was able to survive the 2008/09 global financial crisis and economic recession with minimum impact on the domestic economy. We were able to save jobs in both the public service and private sector, as well as continued to provide essential public services to our people.

 

10. Having successfully weathered the storm of the economic downturn, we can look forward to better days ahead, with economic growth buttressed by reduced inflation. These positive trends should allow us to revive some of our postponed projects, along with outstanding issues affecting the conditions of service among public employees. Our optimism is in part based on forecasts of continued, albeit still fragile, global economic recovery, with worldwide output projected to grow by 3.3% in 2014 and 3.8% in 2015.

 

11. Turning to the domestic economy, the gross domestic product (GDP) at current prices stood at P124 billion in 2013 and it is projected to expand to P136.5 billion in 2014. In real terms, the GDP grew by 5.8% in 2013, and is projected to grow by 5.2% in the current year, driven by both the mining and non-mining sectors.   Within the non-mining sector, retail and hospitality industries, as well as agriculture are experiencing growth.

 

12. Average national inflation continued to decline from 8.5% in 2011 to 7.5% in 2012 to 5.9% in 2013 and further to 4.5% in September 2014, which is well within the Bank of Botswana objective range of 3 to 6%. This positive trend gives us confidence in our ability to maintain a low inflation environment, which is necessary for domestic enterprises to compete in the global market.

 

13. In terms of our fiscal management, Government succeeded in restoring a balanced budget during 2012/13 financial year, after four years of budget deficits. For the 2013/14 financial year we were able to collect P 48.9 billion, up from the P 41.7 billion received in 2012/13, while total expenditures and net lending for 2013/14 amounted to P 41.73 billion. This resulted in a budget surplus of P7.2 billion, largely due to the good performance of the mineral sector. For 2014/15 a budget surplus of P1.3 billion is currently projected. These savings will allow us to reduce our debt burden and rebuild our financial reserves.

 

14. To sustain a positive balance sheet will, however, require expanded revenues. Here I can report that we were able to collect P48.9 billion in the 2013-14 financial year, up from the P41.7 billion received in 2012-13. The 2013/14 outturn for expenditure and net lending was P41.7 billion.

 

EMPLOYMENT

 

15.  Madam Speaker, to be meaningful to Batswana, economic growth has to be accompanied by expanded employment, which is why our manifesto listed job creation at the top of our aspirations. To reiterate what I said in my own message to the voters, of all our campaign promises tackling unemployment is the most important one. While there has been some progress in recent years, current estimates put unemployment among those 18 and above at just over 17%. Although this reflects a modest reduction since 2007, it has been insufficient to absorb all those seeking employment, especially among our talented youth. We can and shall do more.

 

16. Our Economic Diversification Drive (EDD) is a key instrument for job creation. Since its 2010 inception, EDD has been facilitating employment generating business opportunities by promoting the consumption of local products. While our immediate focus has been leveraging public procurement in support of domestic industries, as we move forward our emphasis will shift to developing greater internal capacity for export-led growth, while continuing to value local goods and services.

 

17.  So far a total of P13.3 billion worth of goods and services were recorded since the inception of the initiative. Out of this figure, the value of local manufacturers and service providers (EDD purchases) amounted to P590.5 million for 2010/2011, P1.8 billion for 2011/2012 and 2012/2013 and P2.3 billion for 2013/2014. Over one thousand enterprises have so far been registered under the EDD Programme, which has contributed to the employment of 28,000 Batswana.

 

18. We have already begun implementing our EDD Medium to Long Term Strategy, to develop sustainable sectors for economic growth and diversification. A leading example is the Leather Sub-sector Strategy, which is focused on the establishment of a Leather Park in Lobatse at a total cost of about P225 million. Government has agreed to finance the park’s primary infrastructure, a Common Effluent Treatment Plant, estimated to cost P102 million, while other components of the project will be financed through private sector investment.

 

19. Government had also budgeted over P20 million to provide temporary assistance for over 12 months to support 34 textile companies, employing 2,912 workers.

 

20. While the nurturing of SMMEs, support for existing industries and value addition remain critical in our achievement of job creation, we further anticipate that over the next few years local formal sector employment will be generated with the emergence of new economic opportunities through the synergies generated by the development growth nodes or clusters across the country.

 

21. In the Chobe region, for example, we anticipate an expansion of opportunities in tourism, construction, transport services and agriculture resulting from the construction of the road and rail bridge at Kazangula and phase one of the water pipeline to Pandamatenga, along with associated infrastructure. It is estimated that when completed these two mega-projects will create over 9000 permanent jobs.

 

22. Additional emerging labour intensive opportunities are already being generated in our urban areas, as reflected in Selebi-Phikwe’s development as a metallurgical hub, the continued growth of Gaborone as a global diamond as well as regional technical services centre, and Francistown’s growth as a nexus for trade and transport. We further anticipate additional jobs through synergies generated by new mining activities, the continued expansion of commercial agriculture and the development of Trans-Kgalagadi road and potential rail corridor.

 

COMPETITIVENESS    

 

23. A key to unlocking these job creation opportunities will be increasing our global competitiveness. To improve our competitiveness ranking in the area of goods market efficiency we have tightened our market monitoring for greater efficiency in the provision of goods and services, while the Competition Authority is reviewing mergers and potential cartel activity involving both local and foreign companies.

 

24. Madam Speaker, job creation is inevitably linked to investment. In this respect the latest FDI Intelligence report indicates that Global Greenfield FDI showed signs of recovery, increasing by an estimated 11% from 2012 to 2013. The increase in local investment has been even greater, with UNCTAD’s 2014 World Investment report showing Botswana having grown by 27% in 2013.

 

25.  The Botswana International Trade Centre (BITC) continues to promote our country as a competitive location for investment, making business contacts and generating leads. During the 2013-2014 financial year, BITC helped realise a total combined investment capital of just over 1 billion pula, of which P 642 million was from foreign direct investment (FDI) and P449 million came from new domestic investments. In 2012/13, BITC further recorded P1.9 billion worth of goods and services exported into the region and beyond, of which P738 million was attributable to financial and international business services by the financial services cluster.

 

26. Botswana was ranked number one in the 2014 Baseline Profitability Index, surpassing Hong Kong as a location for medium to long term returns on investment. In essence the Index suggests that investors can expect to do well here once they have established themselves in our market.

 

27. Government is, furthermore, working to limit the number of licenses and permits, while allowing mixed land use zoning, adopting risk based approach for Environmental Impact Assessments and Management Plans, and decentralising the management of electricity connections.

 

28.  Government has also embarked on a National Work Ethic programme to promote productivity. So far, 254 facilitators have been assessed to implement the programme, which commenced in May 2014.

 

29. The drafting of a Bill which will provide the legal framework for the establishment of Special Economic Zones and the Special Economic Zone Authority is being finalized.

 

30. The Rural Development Council (RDC) has been upgraded as the national consultative body to promote and coordinate the implementation of rural development policies and programmes. As a result community based projects such as the Zutshwa Salt Project and the Mogobane Irrigation Scheme, to mention some, have been resuscitated.

 

CITIZEN EMPOWERMENT

 

31. Madam Speaker, it is pleasing to note that to date, CEDA has funded 5,462 enterprises with a total value of nearly P8.55 billion, in the process creating over 48,935 thousand jobs.  During the 2013/14 financial year, CEDA assisted 151 new enterprises with a total monetary value of P152 million, collectively generating 1042 new jobs.

 

32. Since its inception, LEA has also facilitated the creation of 4995 new jobs, including 568 in the ongoing financial year. The Authority has further trained a total of 9,317 entrepreneurs. In an effort to inculcate an entrepreneurial culture, LEA embarked upon the Entrepreneurship Awareness Workshops among secondary school leavers, vocational trainees and prison inmates; over 26,000 of whom have been trained.

 

33. Madam Speaker, through the Botswana Bureau of Standards (BOBS), we have encouraged our small and medium enterprises to implement quality assurance activities within their businesses. Progress has been made in certification of goods especially in the building and construction industry. To further ensure that prescribed goods entering our borders comply with domestic standards, a BOBS office has been opened at the Tlokweng Border.

 

RULE OF LAW

 

34. Madam Speaker, adherence to the rule of law remains a cornerstone to our national development. It is thus encouraging that independent comparative surveys, as well as domestic polling, consistently place us among the best in the world as well as first in Africa in terms of our upholding the rule of law while ensuring the safety and security of all our citizens. These surveys include:

 

• 2014 Ibrahim Index of African Governance, where we ranked first in the category of safety and security;

• World Justice Project’s 2014 Rule of Law Index, where we were ranked 25th in the world as well as first in Africa;

• 2014 Global Peace Index where we were at 36th place, ranking above half of European countries surveyed;

• 2014 Legatum Index for Governance and Rule of Law, where we were ranked 28th in the world; and

• 2013 Global Democracy Index, where besides ranking 35 out of 167 countries we achieved a near perfect score in the area of civil liberties.

 

35.  In light of such reputable findings it is unfortunate to say the least that some individuals, working through foreign as well as domestic media, including rumour mongering on social media, have attempted to instil the perception of Batswana living in fear. This is in an apparent effort to undermine this country’s longstanding and shared record of peace, order and good Government.

 

36. While the mass circulation of false and malicious reports intended to incite undue alarm may be aimed at promoting the political agenda of some, it is at the collective cost of tarnishing the image of the country as a whole. It is also a threat to the economy we all must depend upon for our livelihoods. Such disinformation should therefore be rejected with contempt by all peace-loving Batswana. All citizens, residents and potential visitors to Botswana can be confident that this Government will continue to both abide and uphold the rule of law without fear or favour.

 

37. Let me, nonetheless, also observe that we have not, and shall not, allow past achievements or international accolades to breed complacency as we recognise that, here as elsewhere, criminal activity is constantly evolving and increasingly sophisticated. We therefore remain determined to pursue a zero tolerance approach to all forms of criminal activity, including corruption.

 

38. To counter emerging domestic and trans-national challenges the Police Service has deployed integrated law enforcement strategies to combat all forms of criminality and anti-social behaviour. This has involved an ongoing redirection of resources to deal with violent and intrusive, cross border and cyber based criminal activities.

 

39. Whilst total recorded crime excluding road traffic violations rose by 4.7% during the year 2013, significant reductions were, however, registered in respect of violent and intrusive crimes.  Offences in this category, which included burglary, store breaking, robbery, house breaking, threats to kill, murder, rape, motor vehicle and stock theft, declined by 15.4%.

 

40. Road traffic management poses an additional policing challenge. Analysis of road accidents shows a youth bias, expressed in reckless driving, often aggravated by the influence of alcohol. As a result of the increase in the intensity of road policing initiatives, the number of detected road traffic offences rose by 32.4%, while there was a corresponding decrease in the number of fatal road accidents by 2.6%.

 

41. Madam Speaker, the Department of Prisons and Rehabilitation continues to improve security in the prisons and rehabilitation of offenders. While overcrowding has been a problem in some of the Prison institutions, there has been substantial reduction in congestion since 2008. In June 2014 there were 3824 offenders held in prisons, which was 13% below the authorised holding capacity.

 

42. Madam Speaker, the internal and external challenges of today’s constantly changing security landscape, call for a structurally aligned, strategically focused and adequately resourced, as well as highly trained and motivated, defence force. The BDF will thus continue to evolve its structures and strategies to defend the nation, while continuing to provide assistance to other law enforcement agencies in combating crime, including poaching.

 

ACCESS TO JUSTICE

 

43. Madam Speaker, as was most recently demonstrated in the Judgments of the High Court and the Court of Appeal upholding the constitutionality of the Standing Orders of this very House, our Judiciary continues to independently and effectively deliver on its constitutional mandate of settling disputes, both large and small, without fear or favour.  This Government will, as always, respect decisions of the Courts and expects all citizens to do the same.  Equally, we must all display tolerance and recognize everyone’s right to approach the Courts for the resolution of any legal issue no matter how strongly we may disagree.

 

44. To improve everyday access to justice several special court projects like the stock theft, maintenance, traffic, small claims and most recently corruption court have been put in place so as to speed up and improve the case disposal rates, while promoting greater access to justice by simplifying court rules and processes to make them more user friendly.  In addition a Court Annexed Mediation will be in place by the end of the current financial year.  This f

Press Briefing by Press Secretary Josh Earnest, Deputy National Security Advisor for Strategic Communications Ben Rhodes and U.S. Trade Representative Michael Froman

The White House

Office of the Press Secretary

For Immediate Release

November 11, 2014

Intercontinental Hotel
Beijing, China

10:56 A.M. CST

MR. EARNEST:  Good morning, everybody.  It’s nice to see you all.  You don’t look nearly as bleary-eyed as I expected.  I’m joined today by Ben Rhodes, the President’s Deputy National Security Advisor, and Ambassador Mike Froman, who is the United States Trade Representative.

Ambassador Froman has, as you would expect, primarily focused on the aspects of the President’s trip that’s focused on the economy and strengthening the American economy and expanding economic opportunity for Americans back home.  That is, as you would expect, a core component of the President’s agenda while he out here so Mike has got a couple of things to talk to you about.

Then we’ll turn it over to Ben, who will do a review of some of the other aspects of the agenda that the President has been discussing in the context of these APEC meetings but also what we’ll be focused on in the context of the President’s bilateral meetings with President Xi that will begin later on this evening.

And then after that, the three of us will be up here to take questions you have on any topic.  We’ll do this for 45 minutes or so.  All right, Ambassador Froman, would you like to start us off?

AMBASSADOR FROMAN:  Well, thanks, Josh, and I’d like to start with an announcement on an important breakthrough we had in our negotiations with China on the Information Technology Agreement, or ITA, and that’s news that the President just shared with his other APEC leaders at the leaders summit.

Last night, we reached a breakthrough in our ongoing efforts to expand the Information Technology Agreement.  This is a WTO agreement that eliminates tariffs on high-tech products among 54 economies, including the U.S. and China.  And to give you some idea of the importance of this agreement, the last time the WTO agreed to eliminate tariffs on IT products was in 1996 when most of the GPS technology, much of the medical equipment software, high-tech gadgetry that we rely on in our daily lives didn’t even exist.  In fact, since that time, global trade in these types of high-tech products have reached $4 trillion annually.  And despite the explosion of trade, the coverage of the ITA of products has never been expanded.

And so that’s why for the last two years, we’ve been working to –- very intensively –- with our global partners to expand the Information Technology Agreement.  But unfortunately, during the summer of 2013, those talks broke down due to disagreements over the scope of coverage -– what list of products would be covered by the agreement, with most countries, led by the U.S., working to achieve an ambitious outcome.

Since that time, the United States and China have been working to close our differences but without a breakthrough sufficient to resume the plurilateral negotiations in Geneva.  And that finally changed here last night with an agreement between the U.S. and China that we expect will pave the way for the resumption of ITA negotiations in Geneva and their swift conclusion.  And that will be the first major tariff-cutting agreement in the WTO in 17 years.  At a time when there have been a lot of FTAs and other regional arrangements, the WTO hasn’t actually cut tariffs in 17 years and the ITA presents the first opportunity to do that.

This is encouraging news for the U.S.-China relationship.  It shows how the U.S. and China work together to both advance our bilateral economic agenda but also to support the multilateral trading system.  And it also underscores the importance of institutions like APEC — regional organizations — APEC actually gave birth to the ITA back in 1996.  It’s always been a key part of the ITA –- APEC leaders have always called for swift conclusion of the ITA so this is another indication of the utility of forums like this.

Industry estimates have concluded that successfully concluding the ITA would eliminate tariffs on roughly $1 trillion of global sales of IT products.  It would contribute to global GDP $190 billion and would support up to 60,000 additional U.S. jobs in technology and manufacturing.  And by also boosting productivity around the world and particularly in developing countries.

So we’re going to take what’s been achieved here in Beijing back to the Geneva and work with our WTO partners.  And while we don’t take anything for granted, we’re hopeful that we’ll be able to work quickly to bring ITA to a successful conclusion, and that will help support good-paying jobs in the United States, where we lead the world in creating and selling made-in-America high-tech products that the world is hungry to buy.

Let me conclude just about — a word perhaps about TPP, which has obviously been another area of major focus while we’re here.  As you all know, President Obama convened the TPP leaders yesterday.  They had a very productive conversation.  It was a good opportunity to take stock of where we were in the negotiations, to provide political impetus and guidance in terms of resolving the remaining issues.  All the leaders made clear in that joint statement that we’ve narrowed many of the gaps.

There’s still work to be done, but the end of these important negotiations is coming into focus, and that’s awfully important to the United States from a number of perspectives — it’s with 40 percent of the global economy covered by TPP, some of the fastest-growing markets in the world successfully concluding TPP will help support jobs, promote growth, strengthen the middle class in the United States.  It’s a key part of our rebalancing strategy, it underscores how the U.S. is embedded in this region and how the economic wellbeing of this region is integrally related to the wellbeing of the economy in the United States.

And with that, I’ll turn it over to Ben.

MR. RHODES:  Great, I’ll just give a brief preview of the President’s upcoming meetings here in China, and then we can take your questions on Mike’s issues or any other issues in foreign or domestic policy.

With respect to the bilateral visit here to China, the two issues that we’ve highlighted over the course of the last two days I think are the key priorities that we were able to get down and closed out around this bilateral visit:  That is the visa announcement that was made yesterday, and then the bilateral understanding on ITA that was reached today.

I think what speaks to the significance and dynamism of the U.S. economic — U.S.-China economic relationship.  Today at APEC that is clearly going to be broadened out into a discussion in regional issues related to trade and economic cooperation, as well as a number of other areas.

But as you know, tonight the President will have a dinner with President Xi Jinping of China to kick off the state visit portion of our time here in Beijing.  And then tomorrow, the two leaders will have bilateral meetings, as well.

In addition to discussing and marking the progress that’s been made on these bilateral economic issues, they’ll also discuss a range of other bilateral and global issues that are of mutual interest to the United States and China.

Specifically I’d expect there to be a discussion around our cooperation on clean energy and climate change as our two countries prepare for the ongoing international climate negotiations heading into next year.

We’ll have a discussion of a number of regional security issues, among them our shared commitment to denuclearization on the Korean Peninsula, as well as the security environment in the broader Asia Pacific region, including our interest in maritime security and the situation in the South and East China Sea.  We’ll discuss our military-to-military relationship and what we can do to develop greater dialogue and cooperation and confidence-building measures working together.

There will certainly be a discussion of the ongoing talk in Iran with Iran over its nuclear program.  And Secretary Kerry will be joining the President from Oman, where he’s been in a trilateral dialogue with the Foreign Minister of Iran and Cathy Ashton from the European Union.

Cybersecurity, of course, will be an important focus for the President given some of our concerns related to cybersecurity and the theft of intellectual property.  Afghanistan is an area where we are looking to cooperate with China.  We very much welcomed President Ghani visit here to Beijing earlier in the year and believe that China can be a partner in promoting development and stability in Afghanistan going forward.

Global issues like Ebola and ISIL will certainly be a part of the discussion.  And we’ve worked with China to enlist them in the effort to fight the outbreak of Ebola in West Africa.  And then, of course, as is always the case when we meet with China we’ll have a discussion around areas where we have differences — not just cybersecurity, but issues related to human rights and universal values.

So there will be a very broad agenda.  I think we’ve already had very good progress on our leader economic priorities heading into the visit with the ITA and visa understandings that were reached.  I think that shows an ability to identify areas of practical cooperation with China even as we’re, of course, going to have differences on a range of other political, economic and security issues.

And so tomorrow we’ll have those believe meetings.  And then the President will be hosted at a lunch here.  He’ll have a chance to meet with a range of Chinese officials before leaving for the EAS and ASEAN summits in Naypyidaw.

So with that, we’ll move to questions.

MR. EARNEST:  Let’s get started.  Julie, do you want to take us up?

Q       I have one two for Mike and one for Ben also.  Mike, can you say exactly what the U.S. and China agreed to that led to the breakthrough?  And, Ben, with the Obama and Xi bilat starting, the President has invested a lot of personal time in trying to build a relationship with Xi.  At the same time, China continues to be provocative on cyber and maritime issues.  How do you see their personal relationship at this point?  And how does that affect their conversations over the next two days?

AMBASSADOR FROMAN:  Sure, so the ITA is basically a list of tariff lines that are to be covered by tariff elimination.  And we now have agreed to more than 200 tariff lines representing about a trillion dollars of trade to be covered by the ITA.  And some of the — for the last six months we’ve been focused not just on the quantity of the lines, but the quality of the lines.  And the lines that have the greatest potential, for example, for U.S. exports, where the U.S. plays a leading role, areas of expected future growth.  So things like high-end semiconductors where there are tariffs up to 25 percent currently.  We already export over $2 billion of high-tech, high-end semiconductors even with 25 percent tariffs.  Eliminating those tariffs will obviously expand that trade significantly.  It’s an area where we have a comparative advantage, and where we can support a lot of good well-paying American jobs.

Same thing on medical equipment, MRIs, CAT scans.  We export more than $2 billion of those products a year, and they face high tariffs around the region — 8 percent in some places, as well as tariffs elsewhere.  This will eliminate those tariffs and allow us to expand our exports.

Same is true on some of the high-tech instruments that have become components in advanced manufacturing that we’re very much involved in.  So those were some of the issues that we had a breakthrough on that will allow the negotiations now to move forward in Geneva.

MR. RHODES:  Sure, Julie, on your second question, the President has invested a good deal of time and energy in his relationship with President Xi.  I think if you look at the breadth of the agenda, it’s clearly, as Secretary Kerry said, the most consequential bilateral relationship in the world.  And what they were able to do at Sunnylands is cover this whole spectrum of issues.  And, in fact, actually the ITA came up at Sunnylands so this was an area of focus on our trade agenda.

And I think what the President was able to do is convey in that meeting his thinking on all these issues, both strategically and at a tactical level, and he was able to hear the same from President Xi.  Again, Xi Jinping has clearly established himself as a strong and assertive leader here in China.  And the way we look at the relationship is there, at any given time, are going to be areas where we can identify ways to make progress and then there are going to be areas where we’re going to have differences.

And I think we’ve been opportunistic in saying, okay, where do we have an agreement that we can drive the relationship forward on something like visas or ITA.  But on, frankly, the global security issues like Iran and North Korea, the Chinese have been constructive partners.  In the Iran negotiations, they have played a constructive role in being unified with the P5-plus-1, in pressing Iran to take this opportunity to demonstrate that their program is peaceful.  In North Korea, they’ve taken a very strong line to support the notion that denuclearization has to be the goal of any discussions with North Korea.

When we look at the global issues, we’ve encouraged China to play a more assertive role on things like Ebola.  We want them to be stepping up to the plate and kicking in more resources so we welcome the desire from China that is clearly on display here at this summit to play a role in the international community commensurate to its economic and political standing, and its standing as the world’s most populous nation.

At the same time, we’re going to be very clear when we believe that China’s actions are actually pushing outside the boundaries of what we believe to be the necessary international norms that govern the relations between nations and the ways in which we resolve disputes.  And so when we see things on cyber security where we have Chinese actions that disadvantage U.S. businesses or steal intellectual property, we’re going to be very candid about that.

On maritime security, what we’ve said is we’re not a claimant, but there cannot be a situation where a bigger nation is simply allowed to bully smaller nations.  There has to be a means of resolving disputes through international law and international cooperation through discussion between China, for instance, and ASEAN countries on the South China Sea, dialogue between China and Japan on issues related to the Senkakus.  And to that end, actually, we welcomed the meeting yesterday between President Xi and Prime Minister Abe as an opportunity to reduce the tensions between those two countries.

So I think the benefit of the personal relationship is that they know where they’re coming from.  There’s no mystery in our position on these issues, there’s no mystery on the Chinese position.  What we need to do is find when there’s an opening, we take it, and we run through that opening, we work together.  And when there’s a difference, we’re just going to keep raising it repeatedly with China, raising it in international forums like this and try to find ways to encourage China to work within an international system that ultimately is going to be the best way of delivering stability, prosperity, security to this part of the world and also dealing with global challenges.

Q       One for Ambassador Froman and one for Ben.  Ambassador, what are the remaining sticking points when it comes to TPP?  And you say the end of negotiations are coming into focus –- what specifically does that mean?  Do you have a timeline in your head for when there might be an actual deal?  And, Ben, can you talk a little bit about what, if any, specific asks President Obama will have on Ebola and ISIS when he meets with President XI?

MR. EARNEST:  Okay, so just to repeat –- I’ll try to repeat the questions just so everybody can hear them.  So the question about TPP –- final sticking points and timeline for completion, and then any requests that President Obama will make related to ISIS -– ISIL and Ebola.  So, Mike, do you want to go first?

AMBASSADOR FROMAN:  Well, with TPP, it’s a two-track negotiation.  There’s market access and then there are the rules.  In market access, we’ve made very significant progress with most countries, including Japan, on agriculture and on autos we’ve made progress.  We’re not done yet, there are still outstanding issues, but we have made quite good progress there in recent weeks.

On the rules issues, we’re working to close out issues and narrow differences on the remaining.  I’d say areas that there are still issues we need to work through include intellectual property rights, state-owned enterprises, the environment –- those are three examples of areas where we’re paying particular attention to, to try and further narrow the differences and find appropriate landing zones.

In terms of the end coming into focus, these negotiations are an ongoing reiterative process.  And at every stage, we close out issues, we narrow differences, we try and find landing zones, and then we try and build consensus around them.  And I think it’s becoming clearer and clearer what the final landing zones might look like, but we still have some work to do, both to define them and then build support for them.

Q       But can you put any type of timeline —

AMBASSADOR FROMAN:  We’re going to complete it as soon as we achieve the ambitious, comprehensive high standards we set out for ourselves and we’re all working very hard to do that.  There’s a lot of momentum, all the countries are very focused on doing that, but we want to make sure that we get it right.

MR. RHODES:  Kristen, I think on Ebola we’ve encouraged the Chinese and they have made commitments, both financial commitments in the provision of health care workers and support for health care infrastructure in West Africa.  So I think we’ve welcomed those commitments.  We are always encouraging nations to consider ways to do more, but also to galvanize international action — as we head into the G20, for instance.  So I think at the G20 this will be a topic among the countries in Brisbane.  And China obviously has a key role to play there.  So I don’t want to suggest that it’s kind of the lead item on the agenda but I think given the focus that we have on Ebola right now, we want to make sure we’re understanding what the Chinese contributions are, and then how we can work together on a collaborative basis heading into the G20 to get the international community to continue to step up and provide resources.

On ISIL, with respect to China, we obviously wouldn’t anticipate them playing a role in the military coalition.  I think all the countries here in the Asia Pacific region share the concern about foreign fighters going to and from Iraq and Syria, so we can have a discussion around those issues.  I think regionally, too, of course we’ve made clear that any lasting solution is going to have to deal with the political situation inside of Syria.  So it’s an opportunity to exchange views about how to bring about the type of transition that could ultimately end the civil war in Syria.

So I think more likely that they’re going to spend a lot of their time on some of the other issues that I mentioned –- Iran, North Korea, cyber, mil-mil relations, Asia Pacific –- but we want to make sure China is invested on the global agenda that we’re focused on and I think Ebola and ISIL clearly plays into that, particularly on the Ebola front where they can kick in significant resources.

And Ebola is an area where what we said to the Chinese is, there’s both the commitments you can kick in here on Ebola with respect to money and health care workers and infrastructure but also how we’re thinking about infectious disease going forward, and how we have the Global Health Security Initiative where nations are anticipating what’s going to be needed if there are additional outbreaks of different diseases.  And we’ve seen airborne diseases here in the Asia Pacific region.  So I think we want to make sure that when we talk about China playing a bigger role ono the world stage, it’s exactly those types of issues where they can bring resources and expertise to bear in fighting not just Ebola but future infectious disease.

Q       Ambassador Froman, please.  What about the TISA, the Trade in Services Agreement?  There was hope that maybe some steps ahead could have been done also on that subject within the WTO.  Also do you think that you could every close quickly the TPP without a TPA?  And thirdly, what about the development bank for investment in infrastructure that China is building up?  Is the U.S. now open to have it and maybe to participate in it?

MR. EARNEST:  I’ll just repeat the questions.  The Trade in Services Agreement in the context of the broader trade negotiations.  A question about TPA and — what was the last one?  The development bank.

AMBASSADOR FROMAN:  Well, we’ve had quite good progress over the course of this year on the Trade In Services Agreement negotiations.  Several rounds and countries putting on the table offers.  And we have a robust work program going into next year as well.  So there is a lot of work being done on that.  But I would just put in the context of today’s announcement.  I think that the ITA announcement is a significant step in terms of showing the vitality of these plurilateral agreements where countries – likeminded countries can come together and make progress in trade liberalization, whether it’s in Geneva, the WTO, or elsewhere.  So ITA, we took a major step forward today.  TISA is well on its way, the Trade In Services Agreement.  And we have a very good work program ahead.  And earlier this year, we launched the Environmental Goods Agreement negotiation, which also includes China and we hope to work well with China and the other parties in the Environmental Goods Agreement to make progress on that in the coming year or so as well.

On TPP and TPA, our view has always been that the President has made clear that of course he would like to get a Trade Promotion Authority, he’d like to finish TPP consistent with it being an ambitious, comprehensive, high-standard agreement as soon as possible.  And we are working in parallel tracks on that, that ultimately the only guarantee that a trade agreement earns the support of Congress is that we bring back a good agreement.  And our focus is on bringing back an agreement that meets those standards.

On the infrastructure front, obviously the U.S. is very active in the G20 and a variety of other forums, including here at APEC, in talking about the importance of infrastructure and financing for infrastructure.  We have been a strong supporter of the World Bank and the Asian Development Bank.  And we think it’s important that whatever mechanisms are put in place, they live up to the high standards of the multilateral development banks in terms of procurement practices, environmental practices; that they have the very highest standards that exist for international lending.

Q       For Ben.  Ben, before you left on the trip, I think you met with NGOs that were doing work on human rights and democracy in Burma.  What message were they giving to you?  And how do you respond to them when they say, as they maybe have to journalists, it’s not a bump in the road on the reforms when you have the violence going on in some parts of the country.  I think the violence — you have to do more to stand up to — how did you talk to them about that?  And also, how do you carry that message forward in Burma?  What notes will you strike so that the United States doesn’t look like they’re maybe lecturing but rather trying to encourage further —

MR. EARNEST:  Just to repeat the question for everybody else in the room.  Question about how you respond to concerns that have been raised by human rights advocates about the slow pace of progress in Burma, and how does that impact the message that you’ll deliver to Burmese officials when the President is there later this week.

Q       (Inaudible.)

MR. RHODES:  Well, David, I did meet with a number of NGOs, human rights advocates, a number of Burmese separately from that as well who are engaged in civil society there.  I also talked to a lot of the congressional staff that is focused on these issues, given Congress’s interest.  And I think our message is – let me just step back here.  On the one hand, what we’ve seen in the last five years in Burma is transformational.  The opening of a country that had been completely closed off for decades, the opening of some political space, the release of Aung San Suu Kyi, the release of political prisoners, and the initiation, really, of a kind of politics in Burma that just didn’t exist several years ago.  But it’s a country with enormous challenges and enormous needs.  It has a lot to do.

And you don’t complete those types of transitions quickly or easily.  This is going to take years to work through all the different issues that have to be addressed inside of Burma.  However, I think we need to be practical about the timelines associated with those transitions.  When we look at, for instance, Indonesia, the President met with the newly elected President of Indonesia yesterday.  It took many years for them to work through elections and constitutional reforms and dealing with different ethnic groups in the country.  So we’re taking a view here in Burma that this is enormous opportunity for the people inside the country, enormous opportunity for democratization.  However, I think that we are concerned about areas where we do not see progress and where we see significant challenges.  And I think there are really three broad categories that we’re going to be focused on heading into this visit.  One is the ongoing process of political reform in the country.

And, again, what I said to the people I met with is that we share the same objective here –- we share the objective of there being a credible election next year in the parliamentary elections in which the Burmese people can choose their leadership but we also share the objective of supporting the process of constitutional reform inside of Burma.  One election isn’t going to fix all the problems.  There needs to be constitutional reform that enables there to be a fuller transition from military to civilian rule, that enables Burma to choose their own leaders.  And the President will definitely be discussing the progress in planning for those elections but also the progress on, and the need for constitutional reform.  And that’s something that he’ll talk to Thein Sein and Aung San Suu Kyi about.

Secondly, there is the issue in Rakhine State.  And here I think is we’ve seen the most troubling difficulties with the humanitarian situation deteriorating in Rakhine State.  A very specific issue having to do with the treatment of the Rohingya population there.  And there, too, I think we share the same objective of the human rights community.  We want to see better humanitarian access to the Rohingya, to help alleviate the humanitarian situation.  We would like to see a long-term plan, an action plan that does not rely on camps but rather allows people to settle in communities and pursue development within the country.  And we would like to see a process where the Rohingya can become citizens of Burma without having to self-identify as something other than who they are, which is citizens of –- prospective citizens of Burma.

So We’ve been working very hard in the country, working with other countries to try to bring a focus on the situation in Rakhine State, and it will certainly be front and center in the President’s discussions.

Then the third area is the ethnic insurgencies and the ceasefires that have been reached.  Here, I think the government has made a good deal of progress.  They have reached individual ceasefires with many of the different ethnic group.  The Kachin is one that we’ve been particularly focused on of late.  But they’re working to translate that into a nationwide ceasefire that can lead into a process of reconciliation that addresses the underlying issues of ethnic political participation, of economic development in the ethnic areas, and the role of the military as well.

And we believe that there’s a real opportunity here for the government to move forward with this plan.  But again, it has to be one that doesn’t just put a lid on things, but addresses the underlying challenges and works towards the type of federal union that I think has been contemplated in many of the discussions with the ethnic groups.

So we’re coming at a time where a lot of these are in flux.  But the fact of the matter is they can be dealt with through politics — and that’s new in Burma.  That doesn’t mean it’s perfect, but it means that people are going to get around the table; there’s going to be a process for reviewing the constitutional amendments.  There’s going to be elections.  There are going to be talks ongoing with the ethnic groups.  And so we want this opening to continue to move forward.  We want the trajectory to continue to be one of progress.

And the United States can best — I think to sum up my message, the United States can best move that forward by engagement.  If we disengage, frankly I think that there’s a vacuum that could potentially be filled by bad actors.  But when we’re at the table, when we’re pressing these issues, we’re bringing more attention to the situation in Rakhine State.  We are working to bring the parties together in the political process.  We can help facilitate and support through development assistance the implementation of the nationwide ceasefire.

So I covered a lot of ground there, but the bottom line here is I think that we share the same objectives with the advocacy community here.  We are pursuing those objectives through engagement, and we’re clear-eyed about where there’s been progress and where there needs to be more.  And we believe we can best move that along by the President raising this with Thein Sein, with Aung San Suu Kyi.  But you’ll notice he’s also meeting with civil society, he’s meeting with young people.  We’re sending the message that we’re engaging very broadly in this country because we care deeply about its future and we see a real opportunity, but that opportunity can only be seized if they continue moving in the right direction and don’t let some of the recent very significant challenges through the reform off course.

MR. EARNEST:  Carol.

Q       I have one for each of you actually.  On the ITA, can you explain what the difference this one is going to make to the tech industry given that — and how it will impact consumers, and if China got any concessions in this breakthrough?  And then, Ben, you mentioned that Obama and Xi are going to talk about military-to-military cooperation.  Can you guys talk on those building measures?  And have you guys reached agreements on notifying each other about military activities and on a code of conduct for encounters in sea and air?

Josh, on the net neutrality announcement, can you talk about why you guys did that now and what you’re trying to accomplish, and what sort of pushback can you expect from the new Congress?  And whether or not the President has talked to Comcast about it?

MR. EARNEST:  Mike, I’ll let you go first.  Do you want to repeat the question for — I think I lost track by the end.

AMBASSADOR FROMAN:  The benefits of ITA.

Q       Right.  (Off mic) and how it’s going to affect consumers.

AMBASSADOR FROMAN:  Well, in these tariff reduction agreements, it obviously benefits both the producers who can now sell more of their product, but also the consumers — because they’ll see access to products more easily.  And when you’re talking about medical devices, for example — medical equipment, like MRIs and CAT scans, and a whole variety of implantable devices — that means better health care for people all over the world.

The tariffs range as high as 25 percent for some of the next generation semi-conductors; 30 percent for loud speakers; 30 percent for certain software media; 30 percent for video game consoles.  So some of the tariffs are in the 5 to 8 percent range, some are in the 25 to 30 percent range.  And right now the trade in these cover lines is about $1 trillion, and we’d expect it to grow significantly for the benefit of consumers and the benefits of producers, including a lot of products made in the United States.  We export over a billion dollars of these products right now, even with these barriers in place, and that will help support more jobs in the United States.

Q       (Inaudible)

AMBASSADOR FROMAN:  In trade negotiations there’s always issues of how the obligations are phased in over time, and that will be part of what’s discussed in Geneva.

MR. RHODES:  Sure, on the specific nature of the confidence-building measures with the Chinese and mil-mil ties.  I don’t want to get ahead of the discussions, but we’ve certainly been focused on both just simply the lines of communication with China, but also how to address some of the challenges we’ve seen recently, for instance, with respect to circumstances where we certainly came a little too close for comfort between the United States and Chinese military assets.  And so we’re looking at what practical things can be done to build confidence and have more transparency.  So we’ll keep you updated on that.  I don’t want to get ahead of the leaders.

But the bottom-line principle is, first of all, it’s incredibly important that we avoid inadvertent escalation and that we don’t find ourselves having an accidental circumstance lead into something that could precipitate conflict.  So there’s enormous value in that type of dialogue.

And the second point I think is it’s good for the region if the United States and China are able to have greater transparency between our militaries.  I think that will ultimately promote stability.  And we’ve encouraged that type of transparency across the region — whether it’s an ASEAN code of conduct or whether it’s the type of dialogue that President Xi and Prime Minister Abe had yesterday.  This is something that we’ve been encouraging all of our partners to do — to be more transparent, to build confidence, develop practical means to avoid an inadvertent escalation.

So it will be an important topic of their meeting, and we’ll keep you updated on it.

Q       So just the two things that —

MR. RHODES:  I mean, there are those and then there’s just the broader nature of our military-to-military relationship and how we interact, how we have exchanges.  So I think we’ll have more to say on this, but I don’t want to get ahead of the leaders.

MR. EARNEST:  And then before we move on to — just on the net neutrality question that you raised earlier, Carol — I know that there are members of Congress on both sides of this issue who have made their views known.  The White House has been in touch with the business community on a variety of issues, as we always are.  And I know that this is something that, again, on both sides of this issue they are very strongly held views.

The position that the President articulated in the statement that was released today is consistent with the President’s previously expressed strongly held views about the important of an open Internet; that the Internet has been the source of innovation, that it’s been good for the economy, in particular in the United States.  And putting in place a regulatory regime that does not allow some of those companies to sort of extend some preferential treatment to some content is an important way that we can protect the freedom and openness that’s associated with the Internet that will ensure that it continues to be a space that’s open to innovation and progress.

But again, this is something that has been — has engendered strongly held views on both sides, so I would anticipate this will continue to be a pretty robust debate in the political sphere back home in the United States.

I will say that in terms of the timing of this announcement, it is not related to this specific trip; that there are some regulatory decisions that are due.  And the President felt like this was an appropriate time to, again, reiterate his views about the important principle that’s at stake here.

Ed.

Q       Ben, I had a question about Putin in terms of — I know it was just a brief conversation so far.  But can you say anything that happened there?  But also more importantly moving forward what you hope to accomplish, what message you hope to send to Putin because we’ve heard again and again that sanctions are working against Russia.  And certainly we’ve seen the ruble in the last couple days — there’s been an economic impact.  But the administration put out a statement a day or two ago saying that heavy artillery and tanks are being sent to the front line basically by Russia.  And that’s your own assessment.  So doesn’t that suggest that the sanctions are not stopping them from this heavy influence inside Ukraine?

MR. EARNEST:  The question is about the exchange between the President — President Obama and President Putin yesterday and the impact of sanctions on influencing Russia’s actions in Ukraine.  Ben, you want to take that.

MR. RHODES:  Sure.  Well, first of all, their interaction, as I think we said last night, it was very brief.  The leaders greeted each other as the President greeted many leaders.  They did not have the substantive exchange that they do today on the margins of APEC, where I think there’s a lot more time.  We’ll certainly let you know.

But, Ed, I think — first on the message and then on the situation in Ukraine specifically, on Ukraine, we continue to be deeply troubled by Russia’s activities.  And I guess to take your question head-on, the sanctions are clearly succeeding and having an impact on the Russian economy.  There’s no question that if you look at every metric from the status of the ruble, to their projections for growth, that the Russian economic picture is grim and getting grimmer because of the sanctions.

The sanctions have yet to sufficiently affect Russia’s calculus as it relates to Ukraine.  That’s why we continue to impose them.  That’s why we continue to be very clear about where we need to see better Russian action, specifically, as you said, we’ve seen the continued provision of support to the separatists, including heavy weapons that are in complete violation of the spirit of the Minsk agreement.  And what our message is to Russia is there’s an agreement that you reached with the government in Kyiv, and you just abide by that agreement.  The separatists must abide by that agreement.  And escalating the situation by providing these types of weapons into Ukraine is clearly not in service of that process.

And what Russia will find is, if they continue to do that, it’s a recipe for isolation from a broad swath of the international community.  It’s a recipe for the type of economic disruption they’ve seen from the sanctions going forward.

So our message is one of resolve in insisting upon the sovereignty and territorial integrity of Ukraine.  It’s a message that there is a road map here through the Minsk agreement that should be followed.  And the President will certainly I think express that view publicly and privately in the coming days and weeks.

I think more broadly with Russia, I think at the same time we’ve had differences with them on Ukraine, we’re working to pursue an Iran agreement.  We’re working in a range of areas where we can make progress together.  But clearly what we’ve seen is a troubling focus from President Putin on the situation in Ukraine that is going to demand a response from the international community going forward, just as it has the last several months.  And the United States is going to be committed to leading that response.

MR. EARNEST:  Mark.

Q       Thank you.  Just a question for Mike and then a question either for Mike or Ben — if more appropriate.

On the trade talks, Mike, I’m paraphrasing, but you said earlier the best way to get Congress to pass a TPP deal is to bring them a very good agreement.  And some trade analysts say that that sort of has it backwards, that you sort of need to get the TPA authority first because that allows you to obtain concessions from trading partners.

I’m wondering sort of whether you think you can get those concessions without the President having TPA, and whether foreign leaders have pressed the President in the wake of the elections to try to get that authority from Congress.

And then secondly on cyber, the working group that Secretary Kerry set up on the cybersecurity issues obviously stopped working after the charges were brought against the Chinese military officers for hacking.  Will President Obama in his talks with President Xi encourage him, ask him to resume the dialogue of that working group?

MR. EARNEST:  So just to restate the two issues on the microphone, the second question was about the cybersecurity working group and the relationship between the U.S. and China and how the President will raise that with President Xi when they discuss it tomorrow.

And then the first question was related to does the Ambassador feel as if he can reach a good agreement with other countries without having TPA authority first, right?  Okay.

Ambassador Froman.

AMBASSADOR FROMAN:  Well, our approach has always been to pursue both in parallel and to make clear that ultimately, again, as I said the only guarantee that agreement gets the support of Congress is that it is a good agreement and meets that ambitious, comprehensive, high-standard outcome that we have sought to achieve.

I think — we have an ongoing discussion with our trading partners.  They follow our political system very closely, and we have made clear — and I think they understand — that every country has its domestic processes to go through on trade agreements.  And we’re responsible for ours, and they’re responsible for theirs.  And as the President has made clear that he wants to work with leaders in Congress, Republican and Democratic leaders in Congress, to advance the trade agenda, that has allowed our negotiations to continue.  So we’re continuing to work in parallel to close out the TPP negotiations consistent with the high standard that we’ve set for ourselves.  And we’re continuing to work with Congress to achieve trade promotion authority with as broad bipartisan support as possible.

MR. EARNEST:  Ben, do you want to do the cyber?

MR. RHODES:  Yes, Mark, it’s certainly the case that after those charges were brought we did see a chill in the cyber dialogue.  I think the fact that we pursued those cases demonstrates that we’re not going to simply stand idly by.  If we see activity that we don’t like, that we can call out, we’re going to do that.

At the same time, though, we do believe that it’s better if there’s a mechanism for a dialogue where we can raise concerns directly with one another.  So I think President Obama will highlight the importance of having a means to have a cyber-dialogue so that our governments can share information.  We can be direct about areas of concern.  We can try to find ways to build confidence in that space, as well.

So it is something where we’ve been very firm in our position.  We did see a Chinese reaction to those charges.  Again, we’re going to continue to call out behavior as we see it.  But I think the message in the bilat today, and has it has been going forward, is better for us to have a means to have a dialogue, just as we do on a whole host of other issues through the Strategic and Economic Dialogue, so that we can be more transparent.

MR. EARNEST:  Major.

Q       Ben, on Ukraine, I’m just trying to get a sense, if the President wants to use this venue for the G-20 as an opportunity to engage Putin directly and say, what’s happening in Ukraine right now?  Which seems to be an escalation after several months of relative calm, to protest in a very specific way, and to convey that message to him directly.

Secondarily, can you in any way shape or form provide any clarity on the status al-Baghdadi?

MR. EARNEST:  So just to repeat the two questions.  The first is does the President plan to raise directly with President Putin the concerns that the United States has about their actions on Ukraine either while we’re here at APEC or in the context of the G-20 meetings.

And then an update on the latest assessment about the strike against ISIL that may have had impact on al-Baghdadi.

Ben, do you want to —

MR. RHODES:  Well, Major, I think our position on Ukraine is well known, and it’s manifested in our sanctions and our policy.  So I don’t think we’re necessarily looking to focus to make this a — to go out of our way to try to make the focus of these multilateral Ukraine in the way that we did when we were in Europe, when it was obviously a more natural venue.

That said, I think if the President has the opportunity to talk President Putin, I know he’ll be expressing the need to highlight and get back to the Minsk agreement and express concern over these latest reports.

I also know that other leaders share those concerns, as well.  And yesterday, for instance, with Prime Minister Abbott, we discussed the situation in Ukraine.  He’s obviously very focused on the MH17 investigation and the need for there to be justice for Australian families.  So it’s not simply the United States.  You have a number of leaders — Chancellor Merkel, Prime Minister Abbott, a number of other European leaders — Prime Minister Cameron — who share our concerns.

And so this is not just simply a U.S. view.  I think it’s probably held among many of our friends and allies.  And so I can’t predict exactly what will happen except to say that I know where different nations stand, and I know that that’s what they’ve been saying to the Russians.

Q       Is it fair to interpret, Ben, then that you don’t consider what’s happening right now to be particularly alarming?

MR. RHODES:  We do consider it to be particularly alarming.  That’s why we’ve spoken out about it.  I guess what I’m saying is our position is very clear on this, and the pathway out of this is very clear.  It’s to get back to the Minsk agreement.  And the pattern of imposing consequences on Russia when we see an escalation is also established, as well.

So again, I could anticipate knowing how these meetings go that as the President has an opportunity to engage with leaders like Chancellor Merkel, for instance, on the margins of the G-20, this will certainly come up.  And again, I was just highlighting that President Putin knows full well where we stand.  And we’ve made that clear through not just our words, but our policies, our sanctions.  And that’s go to continue to be our approach here.

On Baghdadi, we cannot confirm his status at this point.  As you know, we did take a strike that successfully hit a number of ISIL vehicles that we assessed was associated with ISIL leadership.  We obviously take time to do due diligence to get an understanding of what the impact was.

The message I think is very clear, though, which is that we’re not going to allow for a safe haven for ISIL and its leadership and its fighters in Iraq or Syria.  And they had for months.  They were able to operate freely.  And I think what they’re finding now — whether it’s outside of Kobani, whether it’s in Anbar province, whether it’s in northern Iraq, whether it was that strike outside of Mosul — that if they move, we’re going to hit them.

Q       Just to clarify — you’re saying you don’t —

MR. RHODES:  I don’t have an update on his status.  No.

MR. EARNEST:  Josh.

Q       Two for Ben.  The first one on Indonesia and the second one in China.  At the meetings yesterday, were there any — meeting yesterday between the President and President Widodo, was there any discussion of Hambali, the terrorist suspect that’s been locked up at Guantanamo for more than 10 years.  I think President Bush at one point promised to return him to Indonesia for trial.  Regardless of whether it came up, what’s going to happen to that individual?  Is there any plan to do anything with him or just keep him at Guantanamo indefinitely?

And then on the Chinese front, given the concerns about press freedom in China, can you explain the President’s decision to do a written interview with the Xinhua Agency, since the Chinese leaders have been criticized in the past for insisting on sort of canned interviews with American news outlets?

MR. EARNEST:  The two questions.  Did the President discuss with the Indonesian leader the status of an Indonesian terror suspect that’s being held at Guantanamo?  And the decision-making behind the President’s decision to do a written interview with Xinhua.

Ben, do you want to take those?

MR. RHODES:  Yes.  Well, on the first question, it did not come up in the discussion.  Counterterrorism did, ISIL did.  We discussed ways to share information.  And we have a good relationship with Indonesia on information sharing related to counterterrorism.  And so those issues were addressed.

But on his specific status, I’ll have to check, Josh, on exactly what the status of his case is.  As you know, we’ve reviewed each one and have a very rigorous process to determine who is cleared for transfer, who is not.  So we can get back to you on that.

On the second question, look, it’s very — when we go on trips, this is something we do everywhere.  As you know from covering us, we tend to do written interviews with outlets when we arrive in a country.

Our view is on the one hand, we need to engage.  And the more the President’s voice can be heard in a country the better because people understand where we come from.  So we do engage Chinese media.  We engage CCTV in the Briefing Room every day.  We engage Xinhua.

At the same time, we’ll raise issues of press freedom.  And the President has raised it directly with President Xi in their believe meetings.  We’ve raised our concerns about the status of some U.S. media organizations and the treatment — the adjudication of their visas.  We’ve raised, again, our concern on having more free access to information here — not just as it relates to the news media, but as it relates to Internet.

So these are things that we will consistently raise, but again, I think better for the President’s voice to get out and to be heard in a country.  We use those interviews as important venues to address different issues.  But in no way does that diminish the fact that we have concerns about the press freedom here in China, just as we do in a range of other countries that we’ve visited who have — who are on a spectrum of how they treat the press.

MR. EARNEST:  Mr. Acosta.

Q       Yes, just to follow up on that with Ben.  What does the President see as his legacy with China?  Is it more engaging with China, but not changing China’s behavior?  Because I was struck by something the President said yesterday with Prime Minister Abbott that press freedoms he likes, that those are U.S. values.  But he does not expect China to have those traditions, to follow those traditions.  Why not?  Why not publicly with Xi push the Chinese to adopt a more American value system on press freedoms and human rights?

MR. EARNEST:  To repeat the question again.  Jim’s question is about who aggressively the President pushes the Chinese on some of the human rights concerns that the President himself has spoken about pretty publicly.

Q       And how that fits into his legacy?

MR. EARNEST:  Yes, and how that fits into his legacy, with that relationship.

MR. RHODES:  Yes, so I’ll start with the human rights piece.  Jim, the President doesn’t just see these as American values.  There are certain things that are universal values.  They’re embedded in the Universal Declaration of Human Rights at the United Nations.  And they should be able to take root in any society.  When you talk about freedom of speech, freedom of association, again, America has championed those values, but we believe that they are universal.

I think what the President is speaking about is the fact that China is at a different stage of development.  Obviously, it has different traditions.  But we do raise these issues.  And we do believe that certain things are universal, the right to, again, speak your mind, access information, to freedom of assembly.  And so it’s something that we’re going to press.  It’s something that comes up in every meeting.  It’s something that we raise publicly, as well.  And at the end of the day, again, I think the people of China are going to determine the future of their country.  But we want to make sure that just as we want China to live up to the rules of the road, we want them to live up to the rules of the road on universal values.

In a place like Hong Kong, that involves respect for freedom of assembly.  It also involves the people of Hong Kong being able to select their own leaders, as was agreed to, to choose their own leadership, again, which was the one county, two systems notion.

In terms of the President’s legacy, I think there’s — what did we get done with China.  On a bilateral basis to, again, improve the American economy, to save the global economy — and coordinated action with China was critical to that — to take the steps we’ve taken on this trip that will promote U.S. exports, promote more tourism and investment in the United States.  All that will have a positive economic impact for America and the American people.

Then I think, however, we want to look at where do we enlist China in regional and global efforts.  Because, again, we want them to play a bigger role.  We want them to be a part of international climate negotiations because you can’t deal with climate change unless China is coming to the table in a serious way.

We want them to be a part of settling disputes and resolving disputes around maritime security in the region.  We want them to be part of pursuing an agreement with Iran over its nuclear program.  So China kind of fits into the type of international order we’re trying to build in which nations are invested in solving problems.

And that very much speaks to rebalance, the signature Asia Pacific policy of the President’s.  We want to see this region more prosperous, more cooperative; again, a place of robust American engagement in ways that support our economy; support the security of our allies and the civility of the region; support the values we care about in a place like Burma where we have an ongoing transition.  And that mitigates the risk of conflict that could derail the extraordinary progress we see here.

So again, when we look at his legacy, it’s going to be where do we move the ball forward bilaterally in ways that benefit the American people?  How do we embed China, working with them, in an international system that can solve problems like climate change and maritime security?  And how is this region a more stable, prosperous and secure place which has robust American engagement.  They’re critical to all those things.  And human rights in our view is a part of the international norms that we uphold.

So just as we care about maritime security and cybersecurity, we care about universal values.  And that’s going to be a part of how we judge the status of the relationship.

Q       You mentioned Iran a couple of times.  If I could just follow up on that.  November 24th is coming up very quickly.  Do you foresee a scenario where that deadline might be put back a little bit?  And you’ve seen Netanyahu’s comments, where he seems to be pretty upset about Khamenei tweeting about the (inaudible) and what do you make of that?

MR. EARNEST:  Can you repeat the question?

MR. RHODES:  Yes, so the question.  Was the states of the Iran negotiations heading to the 24th and the Israeli Prime Minister’s comments on the Supreme Leader’s tweet.

On the first question, what we’ve been focused on is driving towards what progress can we make towards an agreement for the 24th.  We have not focused on discussions with Iran on extending those discussions because we want to keep the focus on closing gaps.

Secretary Kerry was meeting into the night in Oman.  He’s currently on a plane, set to arrive in Beijing.  He will give the President an update on where things stand and what progress he made, so President Obama will hear directly from him about the status of the talks.

And then there are negotiations scheduled in Vienna where we’ll see where we can get by the 24th, and we’ll keep people posted on where things stand.

With respect to the — first of all, the sentiments expressed by the Supreme Leader’s office in that tweet.  They’re obviously outrageous.  It’s the type of rhetoric we’ve seen from the Iranian leadership for years.  We completely reject it, of course.

The fact of the matter is what we’ve always said is even as we pursue this effort around diplomacy on the Iranian nuclear program, that’s about addressing a security concern of the United States and Israel and the international community.  If we can prevent Iran from obtaining a nuclear weapon, that’s in all of our interests.

At the same time, it doesn’t lessen our concern over other Iranian behaviors, including the virulent anti-Israeli rhetoric that has been a part of their political tradition.  So we’ll continue to speak out against that.

With respect to the agreement itself, though, what we would say is, again, if we can verifiably discern that Iran is not building a nuclear weapon, that it’s program is for peaceful purposes, that’s a good thing.  That’s far better than an outcome where Iran is back to trying to accumulate more stockpile, enriching at a higher percent and getting more breakout capacity.  So we’ve already frozen their nuclear — the progress of their nuclear program.  We’ve rolled back the stockpile just during these negotiations.

If we can get a comprehensive agreement, we would say that would be in the interest of American national security and also the security of our friends and allies.

MR. EARNEST:  We’re nearing the one-hour mark here, so we’ll just do two more.  Ching-Yi and then Jim Avila, I’ll let you wrap up.  Go ahead.

Q       Thank you, thank you, Josh.  First question is to Ambassador Froman.  According to interview with Xinhua, President Obama say our summit will also be an opportunity to make progress toward ambitious bilateral investment treaty.  So what kind of progress?  What kind of breakthrough that we can expect about the VIT?

And also the second question is to Ben.  Other than ITA and the visa, what else deliverables that the U.S. is looking forward to reaching this time.  Thank you.

MR. EARNEST:  Repeat the question so everybody can hear.  Ambassador Froman, an update on progress related to the VIT negotiations.  And, Ben, what other deliverables do you anticipate out of the meetings between President Obama and President Xi.

Ambassador Froman?

AMBASSADOR FROMAN:  Well, as you may recall it was about a year and a half ago that China agreed to negotiate a bilateral investment treaty on the basis of what we call a negative list, which is to open up their economy but for specific carve-outs that they negotiate with us.  And that was a major step forward, as were some of the other provisions that we agreed to then.

Since that time we’ve had very good discussions in the bilateral investment treaty channel.  We’ve had a series of rounds to walk through our model of it and to talk about how it would be applied in the case of China.  We have further work to do.  Next year, early next year, China has agreed to give us their first version of their negative list.  And it will be very important if we’re to achieve early progress in these negotiations that that list be as short and as focused, as narrowly tailored as possible.  And we’re encouraging our Chinese counterparts, including while we’re here for this visit and around this summit to focus on making that list as narrow and as short as possible so that we can proceed with negotiations and make progress next year.

MR. RHODES:  I, of course, will let the leaders speak to the specific deliverables.  I think we certainly focused on the visa issue and ITA in these first couple of days because of the economic theme of APEC and the venue of the CEO forum.  So again, I think the President’s meeting will certainly address economic issues.  But I think we’ll also d

Two Europes or One Europe?

European Commission

[Check Against Delivery]

José Manuel Durão Barroso

President of the European Commission

Valedictory speech by President Barroso

European Parliament plenary session

Strasbourg, 21 October 2014

Mr President, Honourable Members,

First of all, I would like to thank you for the invitation to address this Parliament in what would be the last time I have this opportunity. In fact, we are coming to the end of my second mandate as the President of the European Commission and I am very happy to be here with you and my colleagues to present to you our bilan, since this is my second Commission, I think I can also refer to the last ten years.

I want to share with you my feelings, my emotions, what I think about the way the European Union has responded to these very challenging times and what I think are the most important challenges for the future.

I think you can agree with me that these have been exceptional and challenging times. Ten years of crisis, and response of the European Union to this crisis. Not only the financial and sovereignty debt crisis – let’s not forget at the beginning of my first mandate we had a constitutional crisis, when two founding members of the European Union rejected, in referenda, the Constitutional Treaty. So we had a constitutional crisis, we had a sovereign debt and financial crisis, and in the most acute terms we now have a geopolitical crisis, as a result of the conflict between Russia and Ukraine.

The constitutional crisis that we had was in fact solved through the Lisbon Constitutional Treaty. The reality is that at that time, many people were saying that it would be impossible for the European Union to find a new institutional setting. And in fact there were moments of ambiguity and doubt. But basically, we could keep most of the acquis of the European Union, including most of the new elements of the Lisbon Constitutional Treaty, which was ratified by all Member States including those that today seem to have forgotten that they have ratified the Lisbon Treaty.

More recently – because I learned to leave to the end the economic issues because they are still with us – we had this very serious challenge and threat to our stability, in Europe, coming from the unacceptable behaviour of Russia regarding Ukraine. And we took a principled position. We offered Ukraine an association agreement and a free trade agreement and I am happy that, in spite of all the difficulties, Ukraine was there, signing and ratifying the association agreement, and I want to congratulate this Parliament, because the same day at the same hour the Parliament in Ukraine was ratifying this agreement, you were also ratifying the agreement showing you can offer hope to Ukraine as part of the European family of nations.

At the moment I am speaking to you, this crisis is not yet solved – we know that. But I think we can be proud that we have kept a position of principle, that we have condemned in the most unequivocal terms the actions of Russia and that in fact an association agreement was ratified, not only with Ukraine, but also with Georgia and Moldova because I believe we have a duty to those countries that are looking to Europe with their spirit and their hope to share with us the same future and because they want to share with us the same values.

At this moment we are still mediating and, today, there is a meeting mediated by the Commission on energy with the Russian government and the Ukrainian government, so a political negotiated solution is possible, we are working for that. It is in the interest of all the parties to have a political agreement, but a political agreement that respects the principles of international law, a political agreement that respects the right of country that is our neighbour to decide its own future and a political agreement that respects the sovereignty, the independence of that country. So, we should be proud of what we have been doing in this very challenging geopolitical crisis.

And we also had the financial and sovereign debt crisis. The reality is that the crisis was not born in Europe, but the fact is that because we were not prepared, because the Euro-area had not yet the instruments, we were very much affected by it – not only in financial terms, in economic terms, in social terms and in political terms. I think this crisis was probably the biggest since the beginning of the European integration process in the 50s of the last century. Let’s now put things into perspective.

Dear Members of Parliament,

Let’s remind ourselves what was the main opinion of most analysts in the economic and financial media, or even many of our countries or outside of Europe, about what could happen: everybody was predicting Greek exit, Greece exiting the Euro, and, of course, Greece exiting Euro would certainly, immediately have had a cascading effect in other countries, a domino effect that was indeed already felt in countries such as Ireland or Portugal. But let’s not forget, Spain was also under very heavy pressure, and Italy. We were staring into the abyss. I remember well what happened in discussions in the margins of G20 in Cannes in 2011, I remember well when analysts were predicting with almost unanimity a Greek exit and at least 50% of them were predicting the implosion of the Euro. And what happened? Not only was there no exit of the Euro, now we are to welcome the 19th member of the Euro, Lithuania will join us in the 1st of January 2015. And not only did Greece not leave the Euro area, it has enlarged and the European Union has been enlarging as well. This is a point that has been very much underestimated in our analysis.

2004, the year I had the pleasure and the honour to assume the leadership of the European Commission, do you remember that we were 15? Today, we have 28 countries. So we have almost doubled the membership of the European Union during this crisis. Is there a better proof of the resilience and the capacity of adaptation of our Union? The fact that we were able to remain united and open during the crisis I think confirms the extraordinary resilience and the strength of the European Union and this should not be underestimated.

I know that, for some, these things do not count for much. They are in a way making an idealisation of the past; they dream probably of a closed Europe; they think Europe was better when half of Europe was under totalitarian communism. I don’t think that. I think Europe today is better than when half of Europe was under communism. The fact that the European Union was able, during all this crisis, to open, to consolidate and to unite on a continental scale almost all of Europe around the values of peace, of freedom and of justice, I think it is a great thing we should commemorate and not to be ashamed of, as some seem to be.

So, this is I think also a reason to commemorate. Many people were predicting, as you probably remember, those of you following these issues at that time, that the European Commission would not be able to function with 25 or 27 or 28 Members, that the European Union would be blocked. The reality is that the European Union was not blocked by the enlargement; the reality that I can share with you now is that sometimes it was more difficult to put together some of the founding Members of the Union than all the 28 countries of Europe.

So I think we should be proud of that as well, collectively, because the European Union was able to remain united and open during the crisis. And when I say open, I mean it in all senses of the word, including with an open attitude towards the world. For instance, when we have promoted a proactive climate agenda after the failure of the Doha Development Round and the Doha trade talks. And we are now leading in that sense, because I believe that trade can be one of the best ways to support growth globally and in the European Union. Or when we, because it was an initiative of the European Union, went to the former President of the United States of America, inviting him and convincing him to organise the first G20 meeting at Heads of State or Government level, because that was a way of having a global cooperative approach and to avoid the return to ugly, nasty protectionism. That could be a temptation in times of crisis. So we were able to keep Europe not only united and, in fact, enlarging its membership, but also open to the rest of the world.

But now, are we stronger or are we weaker? I know that the most critical people today will say that we are weaker. But are we really?

In fact, when the crisis erupted, we had almost no instruments to respond to it. We were facing, as it was said at that time, an unprecedented crisis. Yet we had no mechanisms, for instance to support the countries that were facing the immediate threat of default. A lot has been done. We have collectively, the Commission and the Member States and always with the strong support of the Parliament, we have created a new system of governance. We have today a much more reinforced governance system than before, including with unprecedented powers for the community institutions, and we have done everything to keep the community method at the centre of our integration. For instance, the Commission today has more powers in terms of governance of the Eurozone than before the crisis. The European Central Bank has today the possibility to make direct supervision of the banks in Europe, something that would have been considered impossible earlier; it would have been almost unimaginable before the crisis. And I remember when we spoke about the banking union, when I gave an interview saying that we need a banking union, I received some phone calls from capitals saying ‘Why are you speaking about the banking union? This is not in the Treaties’. And I responded, ‘Yes it is not in the Treaties, but we need it if we want to fulfil the objective of the Treaties, namely the objective of stability and growth’. And today we have a banking union.

Honourable members,

If we look at things in perspective and we think where we were ten years ago and where we are now, we can say with full rigour and in complete observance of the truth that today the European Union, at least in the euro area, is more integrated and with reinforced competences, and we have now, through the community method, more ways to tackle crisis, namely in the euro zone. Not only in the system of governance in the banking union, but also in the legislation of financial stability, financial regulation, financial supervision.

We have presented around 40 new pieces of legislation that were all of them approved by the European Parliament. And once again I want to thank you, because in almost all those debates the European Parliament and the European Commission were on the same side of the debate and were for more ambition, not less ambition for Europe. And so today, I can say that we are stronger, because we have a more integrated system of governance, because we have legislation to tackle abuses in the financial markets, because we have much clearer system of supervision and regulation. So, I think we are now better prepared than we were before to face a crisis, if a crisis like the ones we have seen before should come in the future.

Of course, you can say that there are many difficulties still. Yes, and I am going to say a word about this in a moment regarding the prospects for growth, but please do not forget where we were. We were very close to default, or, to use a less polite word, to a bankruptcy of some of our Member States. And look at where we are now. From the countries that had to ask for adjustment programmes, Portugal and Ireland exited the programme successfully. Ireland is now one of the fastest growing countries in Europe. And in fact all the others that were under the imminent threat of collapsing, are now in a much more stable mood. Spain, that asked for a programme for the banks, also has improved successfully. So in fact only two countries of all those, because we should not also forget the Central and Eastern European countries that also had adjustment programmes, even if they were not yet in the euro area, only two countries are still completing their adjustment programmes.

The deficits now on average in the Eurozone are 2.5%. This is much less than in the United States or in Japan. So, in terms of stability, we are much better now than before. By the way, the Eurozone has a trade surplus. The European Union in general now will have a surplus in goods, in services and, for the first time in many years, in agriculture.

I am saying that because very often the opinion in some of the political sectors is that we are losing with globalisation. This is not the case. Some countries of our Union in fact are not winning that battle, but on average we can say that Europe is gaining the global battle in terms of competition, namely in terms of trade and investment.

But of course, growth is still timid. I think that basically we cannot say that the crisis is completely over, because threats remain, but we have won the battle of stability. Today nobody in the world will honestly bet on the end of the euro. The euro has shown that it is a very strong, credible and indeed stable currency. The reality is that our growth is still timid and clearly below expectations.

So what can we do for growth? This is the important question. And for that I need to make a reminder once again. I know very well that very often the European Union policy and namely the European Commission policy has been presented as completely focused on austerity. I think this is a caricature.

We have constantly asked at least for three important lines – fiscal consolidation certainly, for the countries that are feeling the pressure of the markets. It would be completely irresponsible if they could not frontload a programme of rigour to correct their public finances, but we have always said with equal vigour, probably some would not like to listen, the need for structural reforms, for competitiveness, because the reality is that even before the crisis we were growing under our potential, that is the reality, and with serious problem of lack of competitiveness in some of our countries and so that is why we needed more ambitious structural reforms.

But we have also argued in favour of investment. I have always said that we need more investment, public and private investment. Private investment will come the more we show that we have competitive economies that we can attract private investment. Indeed I am now happy to see that most of our countries, certainly at a different pace, but they are pursuing ambitious structural reforms that would have been considered completely impossible before the crisis.

And the reality is, if we want to be honest in terms of the analysis that the countries that have suffered the most during the financial crisis were precisely those that have lost in terms of cost competitiveness before the crisis. And now, for instance the reforms that have been made by Spain, by Ireland, by Portugal, by Greece, are impressive.

Now, apart from the political consolidation and the structural reforms, we have always seen the need for more investment. Private investment, but public investment as well. You will remember the debate about the MFF. President Schultz remembers certainly. We were together in many meetings asking the Member States to do more in terms of investment and the most important instrument we have at European level for investment is the Multiannual Financial Framework, that is around one trillion euros.

So if there is not more ambitious investment it was not because of a lack of ambition of this Commission, or a lack of ambition of this Parliament. It was because of the opposition of some capitals. This is the reality. We are for solid investment, targeted investment for growth. Not only with the MFF. Remember the proposals that for instance here in the State of the Union speeches with you I have put forward. The increase of the capital for the EIB that finally was agreed. The project bonds that the Member States have accepted, but only as pilot project bonds. The facility that we have created for SMEs with loans from the EIB and funds from the structural funds, from our budget. Unfortunately only two countries wanted to pursue that line.

Or, for instance, the programme for youth, the Youth Guarantee that we have proposed and that the Member States have agreed. But now with the Youth Employment Initiative, only two countries have accepted to have a dedicated programme for youth employment.

So, my dear colleagues, let’s be clear: we are for investment. I wish all the best to the new Commission and to my friend and colleague Jean-Claude Juncker, to have the support of the Member States for a more ambitious investment programme for the next years. I believe this is possible now, I believe the awareness is much bigger on this matter. But once again this is part of a comprehensive strategy that combines fiscal consolidation with structural reforms and investment, and, of course, all the measures taken by us in terms of the banking union and in terms of financial regulation for stability.

And I’m saying this with this vigour because I think it would be now a mistake, after everything we have done, to give up, to show less determination, to abandon the road of structural reform. I think we have done a part of the job, stability is broadly there, growth, even if it is slower than what we would like to have, but now we need determination to complete the reforms so that sustainable growth, not growth fuelled by debt, excessive public or private debt – because such growth is artificial, it’s a fictional growth, and afterwards, sooner or later, we would pay the price – but sustainable growth – that I believe it is possible if we continue the courageous path of reforms and a stronger governance for the European Union.

I don’t have the time now to go over all the other policies we have been developing over the years. But let me just highlight one or two, because I think they are very much at the moment of decision, and I think they are important.

I’m extremely proud that is was my Commission in my first mandate, in 2007, that put forward the most ambitious programme for climate protection in the world. And we are still leading in the world in terms of the climate agenda.

In fact, we were able to join the climate agenda with the energy security agenda, and I’m saying that because this week we are going to have an important discussion in Brussels at Heads of State and Government level, and I hope that the European Union will keep its leadership role – of course not to be isolated but to have others, because we have a responsibility towards our planet. And this is was certainly one of the great advances of these years, that the European Union was able to make the most important and bold steps in terms of fighting climate change.

Another area where I think we could very proud is – in spite of all the restrictions because of our financial situation – that it was possible in the MFF to get 30% more for Horizon 2020, for research and technology. I think there is a great opportunity now for us to do more in that area, as also in the culture side, with our Creative Europe programme.

The reality is that in some areas it was possible, in spite of the economic and financial crisis, to increase investment at European level.

But I’m also very proud that in spite of the pressures of our budgets, we could always be there in terms of development aid and neighbourhood policy.

Whenever there was a big tragedy in the world, from the tsunami in Indonesia to the recent Ebola crisis, from the Syrian refugee crisis to Darfur, we were there, we were among the first. And I think we, Europeans, should also be proud of that, because we are still, together with our Member States, the most important donor for development aid in the world. That is something that corresponds very much to our values and I’m happy that in spite of all the crises we did not abandon our obligations in terms of development cooperation.

I have already said a word about trade. I think it is very important to keep an ambitious trade agenda, an open Europe but for free and fair trade. And the Commission has concluded a record number of agreements, not only with South Korea, Singapore, Central America – the first region to reach an agreement -, Peru, Ecuador, recently with Canada, with Western Africa, Eastern Africa and Southern Africa. And I could also mention some others that are now progressing, like Japan, the United States and also an investment agreement with China.

So we are the most important trade bloc in the world. We are the biggest economy in the world.

And I’m saying that because today I know it’s very fashionable the pessimism, the defeatism about Europe, what I call the intellectual glamour of pessimism. But I believe that we have a good record to show and I believe that together, collectively, we are much stronger and we can better defend our interests and protect our values.

Dear colleagues – I call you colleagues because I believe we have been sometimes in discussions but we have been colleagues in this great enterprise that is the European project -, I think politically we have some lessons to draw.

One is that we have shown great resilience. I think we can say that the forces of integration are stronger than the forces of disintegration. And I believed that day and night, sometimes in very dramatic moments, sometimes when I had to make dramatic appeals to some capitals: to the richer countries, asking them to show more solidarity; and to the poorer countries asking them to show more responsibility.

Sometimes we have done it very discretely, it’s true. The European Commission is probably more discreet than others. I did not want the Commission to be part of the cacophony of different voices during the most acute moments of the crisis. It was extremely market sensitive that situation. But I can tell you, in my full conscience, that we have done everything we could with existing instruments to avoid the fragmentation of the euro or to avoid a division in the European Union. And I very often had to call on my colleagues in the European Council, Heads of State and Government, to show the ethics of European responsibility.

But one of the lessons I draw from this is that if eventually it was possible to come to decisions, it is true that it was sometimes extremely painful and difficult. And took time. We have said also, and I think it is something that we can all agree: democracy is slower than the markets are.

The Commission would have preferred, and I’m sure this Parliament as well, decisions to be bolder, more comprehensive, faster. But we are a Union of democratic states, we are not a super state. And we have to respect different sensitivities.

One of the conclusions I draw from these ten years of experiences is the need to cooperate between institutions. I know sometimes it is more popular to put forward impossible ideas and to criticise others. But I firmly believe that we need to engage with different institutions, that it is not a solution to oppose the countries to the European Union. On the contrary, we have to show to our countries that they are stronger if they are part of the European Union. That we are not diluting their national identity but, on the contrary, we are asking them to share their sovereignty so they can project better their interests globally. I’m firmly convinced of this.

And I’m saying this to you now, as I am leaving in a few days: my only interest is that these lessons are learned so that we do not repeat some mistakes in the future. At the same time, I think we can say that it is not through confrontation but through cooperation that we can attain our objectives.

At the moment I prepare to hand over this very challenging and interesting job to my good friend Jean-Claude Juncker, I want to say here, on my behalf and on behalf of all my colleagues of the Commission, that we wish the new Commission all the best, that they have a great challenge ahead of them but that they could count also on our support. And I’m sure of the support that this Parliament is going to give to them.

Because, Mr President, the relations were not always perfect. But I think you can agree that we were able to establish a fruitful relationship between the Parliament and the Commission.

I’ve been in this Parliament more than 100 times. There was never a Commission that was so often represented in the Parliament as my two Commissions. We have established this cooperation and I’m so grateful because this Parliament, sometimes with very strong demands, was always supportive of the community method, was always supporting the community institutions. And I believe this is very important for the future of Europe.

My dear colleagues of the European project,

The way to solve the problems we have in Europe is not through revolution and even less through counter-revolution. It’s by compromise, it’s by reform. Evolution and reform. We have to reform to adapt to the new challenges but not with new clashes between the institutions, not with clashes against our countries. And I believe that if this idea of strong cooperation putting the European common good above all else, I think my colleague and friend Jean-Claude Juncker and his new Commission will have success, of course based on the support I’m sure you are going to give them.

Because the European Union is a union of values. In these last days I had to face many journalists and they asked me ‘what was your most emotional moment? Which moment did you prefer?’ And I have many, and I also had very difficult ones, to be honest. But one of my most emotional moment was when, on behalf of the European Union, together with Martin Schulz and the President of the European Council, Herman Van Rompuy, we received the Nobel Peace Prize on behalf of the European Union.

I think this was a powerful reminder sent to us from the global community that we count in this world and that what we do is very important. That the values that were at the origin of the creation of our Union, namely the value of peace, are still at our essence today. And that we have to fight for them.

And I think is the moment I really said I want to share with all those in the different institutions, including this Parliament, that have been working for a united, open and stronger Europe. And when I leave this office, with all my colleagues at the Commission, I can tell you that we have not achieved everything we could, or everything we would have liked to have achieved, but I think we have worked with the right conscience, putting the global interest of the European Union above specific interests. And I believe that now there are conditions to continue to do work for a united, open and stronger Europe.

I thank you for your attention.

Auf wiedersehen, goodbye, au revoir, adeus.

Muito obrigado, thank you very much.

Following the statements of the Members of the Parliament, President Barroso made the following closing remarks:

Mr President,

I should like to take up a number of the points raised by the previous speakers. Firstly, I believe that proof that we – and by “we” I mean the Commission of which I have had the honour of being Presidentare on the right track lies in the fact that the criticisms have come from the opposite ends of the spectrum, though often couched in the same terms, resolutely ignoring the difficulties and extraordinary challenges that we have had to face and failing to put forward any coherent response.

The truth is that we have been through possibly the worst economic and financial crisis we have seen since the countries of Europe began to come together and that it was not the European Union or Europe that spawned the crisis. This is what some defenders of national sovereignty, as they like to call themselves, do not or will not understand. It was not Europe that created excessive private debt or caused the financial sector to behave irresponsibly. Quite the opposite – this all took place under national scrutiny, or rather lack thereof. Europe is the answer. We now have one of the most ambitious regulatory and supervisory systems in the world, if not the most ambitious. In other words, saying that Europe is worse off because of the European Union is simply not true. It shows a complete lack of respect and a lack of intellectual rigour. Europe is not responsible for the financial crisis, which had its roots in the United States. Europe had its weaknesses, but what the European Union did was to respond. The blame for this does not lie with the European Union, and I believe this is something that all those who share the European ideal – be they at the left, right or centre of the political spectrum – should have the courage to state, because by remaining silent we will be reinforcing the populist rhetoric of the extreme right and extreme left.

I listened carefully to those of you who said that populism was on the rise and who laid the blame for this at the door of the European Union. Ladies and gentlemen, this is not true. It is abundantly clear that populism and xenophobia exist outside the European Union. Look at the anti-immigrant incidents that have taken place in Switzerland. Look at what happened in Norway when that terrorist killed all those young people because he was opposed to a multicultural Europe. Look at the Tea Party movement in the United States. Is Europe to blame for America’s Tea Party movement?

We are currently seeing an aggressive form of populism around the world, which espouses arguments from both the left and the right. Sometimes it is difficult to tell the difference. So to say the European Union is responsible for this shows a lack of intellectual rigour and a lack of political integrity. What we have to do, as Europeans, is to demonstrate that it was not Europe that caused the crisis or the public debt in the Member States. There was little that Europe could do when, for example, one Member State falsified its accounts. This is something Europe had to face. The first initiative of my second Commission was to ask the Member States to give us more powers to supervise national statistics, because in my first Commission this was rejected. And not by Greece. It was rejected by the big Member States, which were reluctant to hand more powers over to the European Union. So if we really want to have a debate, let us be quite clear and strict in terms of intellectual integrity and political candour.

Ladies and gentlemen, there is one thing that I would like to say to you with the greatest of conviction. The team that I have had the honour of heading has worked with enormous commitment and diligence, whilst always putting Europe’s interests first. There is something that I want to say to you, since this is a political assembly with a wealth of political dynamics, but where the emphasis is always on the common European good. My Commission was not made up of colleagues from the EPP, socialists or liberals. It was made up of people who worked for Europe. My party is the EPP and I am proud of that, but, as President of the Commission, my party is Europe and that is the message I wish to convey, in particular to the major forces of the pro-European centre-left and centre-right.  Differences must, of course, be aired, but they must not be allowed to weaken the pro-European camps. We cannot hand the extreme right or extreme left anything else on a plate. Pro-European forces must come together. They must have the courage to defend Europe. They must do so at national level, and not just here in Strasbourg. We need a major coalition of this nature for Europe because I believe that we have the strength to win the battles of the present and those of the future.

Thank you very much for your attention.

Remarks to the American Legion

The White House

Office of the Press Secretary

For Immediate Release

August 26, 2014

Charlotte Convention Center
Charlotte, North Carolina

12:07 P.M. EDT

THE PRESIDENT:  Thank you so much.  Please, everybody, have a seat.  Hello, Legionnaires!

AUDIENCE:  Hello!

THE PRESIDENT:  I want to thank Commander Dellinger for the introduction, but more importantly, for your service in the Army.  And as you conclude your tenure as Commander, thank you for your tireless commitment to America’s veterans. 

I want to thank the entire leadership team for welcoming me here today, including your National Adjutant, Dan Wheeler; your Executive Director in Washington, Peter Gaytan; Nancy Brown-Park, all the spouses, daughters — (applause) — hey! — sisters of the Auxiliary, and the Sons of the American Legion.  (Applause.)  And let me say that I join you in honoring the memory of a friend to many of you — an Army veteran and a great Legionnaire from North Carolina, Jerry Hedrick.  (Applause.) 

To Senators Richard Burr and Kay Hagan, Mayor Dan Clodfelter — thank you for welcoming us to the great state of North Carolina and to Charlotte, and for your great support of our troops and our veterans.

And I do have to mention the President of Boys Nation –Matthew Ellow, from Lacey’s Spring, Alabama.  I welcomed Matthew and all the incredible young people of Boys and Girls Nation to the White House last month.  I was running a little bit late, so they just started singing, filling the White House with patriotic songs.  And then they sang Happy Birthday to me, so I was pretty moved.  And they’re a tribute to the Legion and to our country.   

I’ve brought with me today our new Secretary of Veterans Affairs, Bob McDonald.  (Applause.)  And for those of you who are not aware, Bob is one of America’s most accomplished business leaders.  He comes from a military family.  He excelled at West Point, served as an Army Airborne Ranger — so he’s got a reputation for jumping into tough situations.  (Laughter.)  And he’s hit the ground running, visiting hospitals and clinics across the country, hearing directly from veterans and helping us change the way the VA does business.  And by the way, Washington doesn’t agree on much these days, but he got confirmed 97 to 0.  (Applause.)  People understand he’s the right man for the job.  He has my full support.  And, Bob, I want to thank you for once again serving your country.  (Applause.) 

It’s an honor to be back with the American Legion.  In the story of your service we see the spirit of America.  When your country needed you most, you stepped forward.  You raised your right hand, you swore a solemn oath.  You put on that uniform and earned the title you carry to this day — whether Soldier, Sailor, Airman, Marine, Coast Guardsman.   

Among you are proud veterans of World War II; of Korea; of Vietnam; of Desert Storm and the Balkans; and our newest veterans — from Iraq and Afghanistan.  Across the generations, you served with honor.  You made us proud.  And you carry the memory of friends who never came home — our fallen, our prisoners of war, those missing in action — heroes that our nation can never forget.

When you took off that uniform, you earned another title –the title of veteran.  And you never stopped serving.  As Legionnaires, you put on that cap, wore that emblem — “for God and country” — and took care of one another, making sure our veterans receive the care and the benefits that you’ve earned and deserve. 

And just as you defended America over there, you helped build America here at home — as leaders and role models in your communities, as entrepreneurs and business owners, as champions for a strong national defense.  You helped the United States of America become what we are today — the greatest democratic, economic, and military force for freedom and human dignity that the world has ever known.

Now, these are challenging times.  I don’t have to tell you that.  Around the world as well as here at home.  You turn on the TV and we’re saturated with heartbreaking images of war and senseless violence and terrorism and tragedy.  And it can be easy to grow cynical or give in to the sense that the future we seek is somehow beyond our reach.  But as men and women who have been tested like few others, you should know better.  You know that cynicism is not the character of a great nation.  And so, even as we face, yes, the hard tasks of our time, we should never lose sight of our progress as a people or the strength of our leadership in the world.

Think about it — six years after the worst financial crisis since the Great Depression — in some ways, the crisis had the potential of being worse than the Great Depression — thanks to the decisions we made to rescue our economy, thanks to the determination of the American people, we are stronger at home.  Over the past 53 months, our businesses have added nearly 10 million new jobs — the longest streak of private sector job creation in American history.  Construction and housing are rebounding.  Our auto industry and manufacturing are booming.  Our high school graduation rate is at a record high.  More young people are earning their college degrees than ever before.  Millions more Americans now have quality, affordable health care.  We’ve cut the deficit by more than half.  And now we have to sustain this momentum so more people share in this progress, so our economy works for every working American.

And just as we’re stronger at home, the United States is better positioned to lead in the 21st century than any nation on Earth.  It’s not even close.  We have the most powerful military in history — that’s certainly not close.  From Europe to Asia, our alliances are unrivaled.  Our economy is the most dynamic.  We’ve got the best workers.  We’ve got the best businesses.  We have the best universities and the best scientists.  With our domestic energy revolution, including more renewable energy, we’re more energy independent.  Our technologies connect the world.  Our freedoms and opportunities attract immigrants who “yearn to breathe free.”  Our founding ideals inspire the oppressed across the globe to reach for their own liberty.  That’s who we are.  That’s what America is.  

And moreover, nobody else can do what we do.  No other nation does more to underwrite the security and prosperity on which the world depends.  In times of crisis, no other nation can rally such broad coalitions to stand up for international norms and peace.  In times of disaster, no other nation has the capabilities to deliver so much so quickly.  No nation does more to help citizens claim their rights and build their democracies.  No nation does more to help people in the far corners of the Earth escape poverty and hunger and disease, and realize their dignity.  Even countries that criticize us, when the chips are down and they need help, they know who to call — they call us.  That’s what American leadership looks like.  That’s why the United States is and will remain the one indispensable nation in the world.   

Now, sustaining our leadership, keeping America strong and secure, means we have to use our power wisely.  History teaches us of the dangers of overreaching, and spreading ourselves too thin, and trying to go it alone without international support, or rushing into military adventures without thinking through the consequences.  And nobody knows this better than our veterans and our families — our veteran families, because you’re the ones who bear the wages of war.  You’re the ones who carry the scars.  You know that we should never send America’s sons and daughters into harm’s way unless it is absolutely necessary and we have a plan, and we are resourcing it and prepared to see it through.  (Applause.)  You know the United States has to lead with strength and confidence and wisdom.

And that’s why, after incredible sacrifice by so many of our men and women in uniform, we removed more than 140,000 troops from Iraq and welcomed those troops home.  It was the right thing to do.  It’s why we refocused our efforts in Afghanistan and went after al Qaeda’s leadership in the tribal regions in Afghanistan and Pakistan, driving the Taliban out of its strongholds, and training Afghan forces, which are now in the lead for their own security.  In just four months, we will complete our combat mission in Afghanistan and America’s longest war will come to a responsible end.  And we honor every American who served to make this progress possible — (applause) — every single one, especially the more than 2,200 American patriots who made the ultimate sacrifice in Afghanistan to keep us safe. 

And now, as Afghans continue to work towards the first democratic transfer of power in their history, Afghan leaders need to make the hard compromises that are necessary to give the Afghan people a future of security and progress.  And as we go forward, we’ll continue to partner with Afghans so their country can never again be used to launch attacks against the United States.  (Applause.)

Now, as I’ve always made clear, the blows we’ve struck against al Qaeda’s leadership don’t mean the end to the terrorist threat.  Al Qaeda affiliates still target our homeland — we’ve seen that in Yemen.  Other extremists threaten our citizens abroad, as we’ve seen most recently in Iraq and Syria.  As Commander-in-Chief, the security of the American people is my highest priority, and that’s why, with the brutal terrorist group ISIL advancing in Iraq, I have authorized targeted strikes to protect our diplomats and military advisors who are there.  (Applause.)

And let me say it again:  American combat troops will not be returning to fight in Iraq.  I will not allow the United States to be dragged back into another ground war in Iraq.  Because ultimately, it is up to the Iraqis to bridge their differences and secure themselves.  (Applause.)  The limited strikes we’re conducting have been necessary to protect our people, and have helped Iraqi forces begin to push back these terrorists.  We’ve also been able to rescue thousands of men and women and children who were trapped on a mountain.  And our airdrops of food and water and medicine show American leadership at our best.  And we salute the brave pilots and crews who are making us proud in the skies of Iraq every single day.  (Applause.) 

And more broadly, the crisis in Iraq underscores how we have to meet today’s evolving terrorist threat.  The answer is not to send in large-scale military deployments that overstretch our military, and lead for us occupying countries for a long period of time, and end up feeding extremism.  Rather, our military action in Iraq has to be part of a broader strategy to protect our people and support our partners to take the fight to ISIL. 

So we’re strengthening our partners — more military assistance to government and Kurdish forces in Iraq and moderate opposition in Syria.  We’re urging Iraqis to forge the kind of inclusive government that can deliver on national unity, and strong security forces and good governance that are ultimately going to be the antidote against terrorists.  And we’re urging countries in the region and building an international coalition, including our closest allies, to support Iraqis as they take the fight to these barbaric terrorists.

Today, our prayers are with the Foley family in New Hampshire as they continue to grieve the brutal murder of their son and brother Jim.  But our message to anyone who harms our people is simple:  America does not forget.  Our reach is long.  We are patient.  Justice will be done.  We have proved time and time again we will do what’s necessary to capture those who harm Americans — (applause) — to go after those who harm Americans.  (Applause.) 

And we’ll continue to take direct action where needed to protect our people and to defend our homeland.  And rooting out a cancer like ISIL won’t be easy and it won’t be quick.  But tyrants and murderers before them should recognize that kind of hateful vision ultimately is no match for the strength and hopes of people who stand together for the security and dignity and freedom that is the birthright of every human being.

So even as our war in Afghanistan comes to an end, we will stay vigilant.  We will continue to make sure that our military has what it needs.  And as today’s generation of servicemembers keeps us safe, and as they come home, we also have to meet our responsibilities to them, just as they meet their responsibilities to America.  (Applause.)

When I was here at the Legion three years ago, I said that the bond between our forces and our citizens has to be a sacred trust, and that for me, for my administration, upholding our trust with our veterans is not just a matter of policy, it is a moral obligation. 

And working together, we have made real progress.  Think about it.  Working with the Legion and other veterans service organizations, we’ve been able to accomplish historic increases to veterans funding.  We’ve protected veterans health care from Washington politics with advanced appropriations.  We’ve been able to make VA benefits available to more than 2 million veterans who didn’t have them before, including more Vietnam vets who were exposed to Agent Orange.  (Applause.)  We’ve dedicated major new resources for mental health care.  We’ve helped more than 1 million veterans and their families pursue their education under the Post-9/11 GI Bill.

    And moreover, as the Legion and other veterans groups have said, once veterans get in the door the care you receive from the VA is often very good.  The specialized care is among the best in the world.  And many of the hardworking folks at the VA are veterans themselves — veterans serving veterans.  And we can never thank them enough for their good work. 

But what we’ve come to learn is that the misconduct we’ve seen at too many facilities — with long wait times, and veterans denied care, and folks cooking the books — is outrageous and inexcusable.  (Applause.)

As soon as it was disclosed, I got before the American people and I said we would not tolerate it.  And we will not.  And I know the Legion has been on the frontlines, fanning out across the country, helping veterans who’ve been affected.  And I know Bob is going to give you an update on the actions that we’re taking.  But what I want you to know, directly from me, is that we’re focused on this at the highest levels.  We are going to get to the bottom of these problems.  We’re going to fix what is wrong.  We’re going to do right by you, and we are going to do right by your families.  And that is a solemn pledge and commitment that I’m making to you here.  (Applause.)

Already we’re making sure that those responsible for manipulating or falsifying records are held accountable.  We’re reaching out to veterans — more than a quarter million so far  — to get them off wait lists and into clinics.  We’re moving ahead with reforms at the Veterans Health Administration.  And to help get that done, you supported, and Congress passed, and I signed into law the Veterans Access, Choice and Accountability Act, which means more resources to help the VA hire more doctors and nurses and staff.  It means if you live more than 40 miles from a VA facility, or your VA doctors can’t see you fast enough, we’ll help you go to a doctor outside the VA.

And we’re instituting a new culture of accountability.  Bob doesn’t play.  Bob likes to recall a cadet prayer from West Point, which should be the ethos of all of us:  “Choose the harder right instead of the easier wrong.”  And with the new legislation that I signed into law, Bob and the VA now have the authority to more quickly remove senior executives who don’t meet our high standards.  If you engage in unethical practices, or cover up a serious problem, you should be and will be fired.  (Applause.)

And by the way, if you blow the whistle on higher-ups because you’ve identified a legitimate problem, you shouldn’t be punished, you should be protected.  (Applause.)

So my bottom line is this:  Despite all the good work that the VA does every day, despite all the progress that we’ve made over the last several years, we are very clear-eyed about the problems that are still there.  And those problems require us to regain the trust of our veterans, and live up to our vision of a VA that is more effective and more efficient and that truly puts veterans first.  And I will not be satisfied until that happens.  (Applause.)

And we’re in the midst of a new wave of veterans — more than a million servicemembers returning to civilian life.  So we have to do more to uphold that sacred trust not just this year or next year, but for decades to come.  We’re going to have to stay focused on the five priorities that I outlined last year.  And I just want to reiterate them for you just so you know what it is that we’re committing to.

Number one, we need to make sure our veterans have the resources you deserve.  And the new funding we just helped — we just passed with the help of Senators Burr and Kay, that helps.  But as you know, it’s not enough.  Even in these tough fiscal times, I’ve, therefore, proposed another increase in veterans funding for next year.  And I’ll continue to resist any effort to exploit the recent problems at the VA to turn veterans health care into a voucher system.  We don’t need vouchers.  You need VA health care that you have earned and that you can depend on.  (Applause.)  We need to make the system work.

Second, we need to make sure veterans are actually getting the health care you need when you need it.  Reforming the VHA and more doctors and staff is a good step.  But with this new wave of veterans, we’ve got to deliver the care our newest veterans need most.  And that includes tailored care that treats our women veterans with respect and dignity.  (Applause.)  It means doing even more to help veterans from all wars who are struggling with traumatic brain injury and post-traumatic stress.  And we have to end this tragedy of suicide among our troops and veterans.  (Applause.)  As a country, we can’t stand idly by on such tragedy. 

So we’re doing even more — more than ever — more awareness, more outreach, more access to mental health care.  So long as any servicemember or veteran is suffering, or feels like they have nowhere to turn, or doesn’t get the support that they need, that means we haven’t done enough.  And we all know we need to do more.  Veterans called for it.  We heard you — which is why today I’m announcing 19 new executive actions to help improve mental health care for those American heroes and their families.  (Applause.)

So just one example:  We’re expanding suicide prevention training across the military and the VA, so colleagues and clinicians can spot the warning signs and encourage our troops and veterans to seek help.  We’ll improve access to care, with more peer support — veterans counseling veterans — at VA hospitals and clinics.  We’re calling on Congress to help us ensure that our troops get coverage for mental health care that’s on par with the coverage for other medical conditions.  And we’re going to make it easier for servicemembers being treated for mental health conditions to continue their care as they transition to the VA, so automatically connecting them with the support they need, making sure they don’t lose access to any medications they may be taking.

And maybe most of all, we’re going to keep saying loud and clear to anyone out there who’s hurting, it is not a sign of weakness to ask for help; it is a sign of strength.  Talk to a friend.  Pick up the phone.  You are not alone.  We are here for you.  And every American needs to know if you see someone in uniform or a veteran who is struggling, reach out and help them to get help.  They were there for America.  We now need to be there for them.  (Applause.) 

Our third priority:  We have to keep attacking the disability claims backlog.  Now, the good news is, since its peak last year, we’ve worked with you to slash the backlog by more than 50 percent.  There had been a surge in the backlog in part because of an influx of new veterans; in part because we opened it up for folks who had PTSD, folks with Agent Orange symptoms.  And now we’ve had to work that backlog back down.  The trend lines are good.  But we don’t just want those claims processed fast; we need to make sure they get processed right. 

So we’re going to keep at this until we end this backlog once and for all.  And as we do, we’re going to keep working to liberate you from those mountains of paper.  We’ve got to move towards a paperless system — electronic health records that our troops and veterans can keep for life, and that could cut down on some of the bureaucratic red tape so that you’re getting the benefits that you’ve earned a little bit faster.  (Applause.)   

Number four:  We need to uphold the dignity and rights of every veteran, and that includes ending the tragedy of homelessness among veterans.  (Applause.)  Again, we’ve got good news to report.  Today, I can announce that, working together over the last few years, we have been able to reduce the number of homeless veterans by one-third.  (Applause.)  And that means on any given night, there are 25,000 fewer veterans on the streets or in shelters.  But we’re not going to stop until every veteran who has defended America has a home in America.  That’s a basic commitment that we have to uphold.  (Applause.)   

And finally, we need to make sure our troops and veterans have every opportunity to pursue the American Dream.  That includes a home of their own.  You know, under the law, our servicemembers are entitled to reduced mortgage rates, but the burden is on them to ask for it and prove they’re eligible, which means a lot of folks don’t get the low rates they deserve.

So, today, we’re turning that around.  We’re announcing a new partnership in which some of America’s biggest banks and financial institutions will simplify the process, proactively notify servicemembers who qualify for lower rates and make it easier to enroll.  In other words, we’re going to help more of our troops and military families own their own home without a crushing debt.  (Applause.)

We’re also going to keep helping our troops transition to civilian life.  Because of the work we’ve done together, if you already have a military truck driver’s license, every state now waives the skills test so it’s easier for you to get a commercial driver’s license.  (Applause.)  And we’re going to keep pushing more states to recognize the incredible skills and training of our veterans.  If you could do a job in a warzone, if you’re a medic in a warzone, you shouldn’t have to go take nursing 101 to work in a hospital here in the United States.  (Applause.)  If you can handle million-dollar pieces of equipment in a warzone, that should count for something in getting certified back here at home.  If you can do the kinds of jobs so many of you have done in the most extreme circumstances, I’m pretty confident you can do that job right here at home.  (Applause.)

To help our troops and veterans pursue their education, we worked with loan servicers to automatically cap interest rates on student loans to our servicemembers at 6 percent.  For veterans going back to school under the Post-9/11 GI Bill, we’ll keep standing up against dishonest recruiting and predatory practices that target and prey on you and your families.  So far, about 6,000 colleges and universities have pledged to adhere to our principles of excellence, promising to do right by our veterans.  And more than a thousand colleges and universities have adopted our “8 Keys” to make sure that they’re truly welcoming veterans and helping them succeed on campus.  And by the way, every school in America should join them.  You should be proud if you’re educating a veteran, and you should be doing right by them.  (Applause.)

And we’re going to keep helping our veterans find those private sector jobs worthy of your incredible talents.  Our new online Veterans Employment Center is a single one-stop shop connecting veterans and their spouses to more than 1.5 million jobs that are open right now.  And we’re joining with states and local leaders to identify nearly two dozen cities and regions with the most opportunities for veterans.  And with Michelle and Dr. Jill Biden leading the call, America’s businesses are joining forces to hire or train veterans and spouses — more than half a million so far, and growing. 

So veterans’ unemployment is going down, and it’s now actually lower than the national average.  It was higher to begin with, and we have been driving it down.  But we’ve got more to go, especially for our post-9/11 veterans.  So we’re going to keep saying to every business in America, if you want somebody who knows how to get the job done, no matter the mission, hire a veteran.  Hire a vet.  (Applause.)

So fixing what’s broken at the VA; ensuring the resources you deserve; delivering the health care that you’ve earned; eliminating the backlog; standing up for your rights and dignity; helping you realize the American Dream that you so honorably defended — these are our commitments to you.  This is what we’re focused on.  This is what we can do together — especially as our war in Afghanistan comes to an end and we welcome home our newest veterans.

There are a lot of them here tonight.  We salute Captain Scott Miller of Indiana, a proud Hoosier and a proud Marine.  In Afghanistan, he went out on dangerous patrols, traveling to remote villages, meeting with tribal elders, building trust, forging partnerships to push back insurgents.  And here at the Legion, he continues to serve by encouraging businesses across America to give back to the veterans who defended our way of life and make our prosperity possible.  So thank you, Scott.  Where is Scott here today?  (Applause.)  We are proud of him.  There here is.

We salute Master Sergeant Carol Barker of Greensboro, North Carolina.  As a first sergeant of her medevac unit, she was responsible for more than a hundred troops, helped save the lives of our wounded warriors in those critical first hours when life so often hung in the balance.  And here at the Legion, she continues to serve, helping homeless veterans come in off the streets, and begin their lives anew with a roof over their heads.  Thank you, Carol.  Where’s Carol?  (Applause.)

We salute Sergeant Joe Grassi, who grew up just outside New York City.  After his hometown was attacked on 9/11, he left his civilian job, he joined the Army.  A squad leader in Afghanistan, he spent most of his time on the flight line, in the 120-degree heat, supplying our helicopter crews.  And here at the Legion, he continues to serve, helping veterans complete their disability claims, and raising his voice in Washington for a strong national defense, because, he says, “Some things are worth fighting for.  America is worth fighting for.”  Thank you, Joe.  We’re proud of you.  Thank you, sir.  (Applause.)

Scott, Carol, Joe — they’re among the patriots here today who served in Afghanistan and Iraq.  And I would ask all our Post-9/11 Generation veterans to stand if you are able and accept the thanks of a grateful nation.  I ask these men and women to stand because the American people have to know that even as our war in Afghanistan comes to an end, our obligation to this generation of veterans has only just begun.  And this cannot just be the work of government and veterans groups alone.  I want every American to take this commitment seriously.  Please stand, Post-9/11 Generation, all of you who’ve served in Afghanistan and Iraq.  We’re grateful for you.  (Applause.)

This is not just a job of government.  It’s not just a job of the veterans’ organizations.  Every American needs to join us in taking care of those who’ve taken care of us.  Because only 1 percent of Americans may be fighting our wars, but 100 percent of Americans benefit from that 1 percent.  A hundred percent need to be supporting our troops.  A hundred percent need to be supporting our veterans.  A hundred percent need to be supporting our military families.  (Applause.)  

And everybody can do something.  Every American.  Every business.  Every profession.  Every school.  Every community.  Every state.  All of us, as one American team.  That’s how we will truly honor our veterans.  That’s how we will truly say thank you.  That’s how we will uphold the sacred trust with all who’ve served in our name.

God bless you.  God bless our veterans.  God bless the United States of America.  Thank you very much.  (Applause.)

END
12:41 P.M. EDT

Remarks by National Security Advisor Susan E. Rice Keynote Address at the Center for a New American Security Annual Conference

The White House

Office of the Press Secretary

For Immediate Release

June 11, 2014

Remarks by National Security Advisor Susan E. Rice
“The Strength of American Leadership, the Power of Collective Action”

Keynote Address at the Center for a New American Security Annual Conference
Washington, DC

As Prepared for Delivery

Thank you so much Richard for that kind welcome.  And, to my good friends and former colleagues— Michele Flournoy and Kurt Campbell— I can’t help but note how well-rested you both look.  I’m only a little bitter.  Still, I want to thank you for your stellar service to our country both from inside government and now, again, as leading thinkers on national security.

CNAS, which you founded, does a remarkable job of preparing our next generation of national security leaders.  That work is critical, because our nation needs bright, dedicated young women and men who care deeply about our world.  We need a diverse pipeline of talent ready and eager to carry forward the mantle of American leadership.  So, thank you all. 

As President Obama told West Point’s graduating class two weeks ago, the question is not whether America will lead the world in the 21st century, but how America will lead.  No other nation can match the enduring foundations of our strength.  Our military has no peer.  Our formidable economy is growing.  We are more energy independent each year.  Our vibrant and diverse population is demographically strong and productive.  We attract hopeful immigrants from all over the world.  Our unrivaled global network of alliances and partnerships makes us the one nation to which the world turns when challenges arise.  So, American leadership is and will remain central to shaping a world that is freer, more secure, more just and more prosperous.

At West Point, President Obama outlined how America will lead in a world that is more complex and more interdependent than ever before.  As we move out of a period dominated by the wars in Iraq and Afghanistan, we will lead by drawing on every element of our national power.  That power starts with our unparalleled military might, used wisely and when necessary to defend America’s core interests – the security of our citizens, our economy, and our allies.  We will lead by strengthening effective partnerships to counter an evolving terrorist threat.  We will lead by rallying coalitions and marshaling the resources of our partners to address regional and global challenges.  And, we will lead by standing firm in defense of human dignity and equality, while steering the course of history toward greater justice and opportunity for all. 

Today, I’d like to focus on one pillar of that strategy—mobilizing coalitions.  Indeed, galvanizing the international community to address problems that no one nation can solve alone is the bread and butter of our global engagement.  And, in many ways, it’s both the hardest and the most important element of how America leads on the world stage.          

This concept is not new.  Collective action has long been the hallmark of effective American leadership.  The United Nations, NATO and our Asian alliances were all built on the foundation of American strength and American values.  American leadership established the Bretton Woods system and supported open markets, spurring a rapid rise in global living standards.  Nor is this approach the province of one political party.  It was President Reagan who negotiated the Montreal Protocol, hailed today as our most successful international environmental treaty.  President George H.W. Bush insisted on UN backing and assembled a broad coalition before sending American troops into the Gulf.  And, President Clinton led the campaign to enlarge NATO, opening Europe’s door to the very nations who, as Secretary Albright put it, “knocked the teeth out of totalitarianism in Europe.”  Our history is rich with successes won not as a lone nation, but as the leader of many. 

Now, our approach must meet the new demands of a complex and rapidly changing world.  The architecture that we built in the 20th century must be re-energized to deal with the challenges of the 21st.  With emerging powers, we must be able to collaborate where our interests converge but define our differences and defend our interests where they diverge. Our coalitions may be more fluid than in the past, but the basics haven’t changed.  When we spur collective action, we deliver outcomes that are more legitimate, more sustainable, and less costly.   

As global challenges arise, we turn first, always, to our traditional allies.  When Russia trampled long-established principles of sovereignty, territorial integrity, and international law with its illegal annexation of Crimea, the United States rallied the international community to isolate Russia and impose costs. With American leadership, the world condemned the seizure of Crimea through an overwhelming vote in the UN General Assembly.  We expelled Russia from the G8.  Last week, the G7 met for the first time in 17 years, and we continued to concert our approach to Ukraine and other pressing global challenges.  We’ve reinforced the unity of our NATO Alliance and bolstered our commitment to Article 5.  President Obama has pledged to invest an additional $1 billion to bolster the security of our Eastern European allies against threats or intimidation.  More U.S. Army and Air Force units are now deployed to Central and Eastern Europe, more American ships patrol the Black Sea, more American planes police the Baltic skies.  And, meanwhile, with the support of the international community, Ukrainians have the chance to write a new chapter in their history. 

By working in lockstep with the EU and other partners, we imposed sanctions that are biting the Russian economy.  The IMF, the World Bank and private sector estimates all suggest that $100-200 billion in capital will flow out of Russia this year, as investors move their money to more reliable markets.  Russia’s economy contracted in the first quarter, and the IMF has declared that the country is likely in recession.  Its credit now rates just above junk status.  Russia has lost standing, influence, and economic clout by the day.  With our closest partners—Europe, the G7 and other key allies —we continue to send a common message:  Russia must cease aggression against Ukraine, halt support for violent separatists in the East, seal the border, and recognize the newly elected Ukrainian government.  If Russia does not, it faces the very real prospect of greater pressure and significant additional sanctions.

The speed and unity of our response demonstrates the unique value of America’s leadership.  Unilateral sanctions would not have had the same bite as coordinated efforts with the EU.  American condemnations alone do not carry the same weight as the UN General Assembly.  Bilateral U.S. assistance to Ukraine could not match the roughly $15 billion IMF program.  And, for our Eastern allies, American security guarantees are most powerful when augmented by NATO’s security umbrella.  

The United States’ commitment to the security of our allies is sacrosanct and always backed by the full weight of our military might.  At the same time, we expect our partners to shoulder their share of the burden of our collective security.  Collective action doesn’t mean the United States puts skin in the game while others stand on the sidelines cheering.  Alliances are a two-way street, especially in hard times when alliances matter most. 

As we approach the NATO summit in Wales this September, we expect every ally to pull its full weight through increased investment in defense and upgrading our Alliance for the future.  Europe needs to take defense spending seriously and meet NATO’s benchmark—at least two percent of GDP—to keep our alliance strong and dynamic.  And, just as we reassure allies in the face of Russia’s actions, we must upgrade NATO’s ability to meet challenges to its south—including by reinforcing the President’s commitment to build the capacity of our counterterrorism partners. 

Likewise, our historic alliances in Asia continue to underwrite regional stability, as we move toward a more geographically distributed and operationally resilient defense posture.  In the face of North Korea’s increasing provocations, we’ve developed a tailored deterrence strategy and counter provocation plan with South Korea, and we are updating our defense cooperation guidelines with Japan for the first time in almost two decades.  We aim also to deepen trilateral security cooperation and interoperability, which President Obama made a central focus of his summit with the leaders of Japan and Korea in March and his trip to the region in April. 

Improved coordination is a necessity in the Middle East as well.  The 35,000 American service members stationed in the Gulf are a daily reminder of our commitment to the region and clear evidence that the United States remains ready to defend our core interests, whether it’s disrupting al-Qa’ida or preventing Iran from developing a nuclear weapon.  At the same time, we look to our partners, both individually and through the Gulf Cooperation Council, to cooperate on missile defense and develop other critical deterrence capabilities, including in the spheres of counter-piracy, maritime security, counterterrorism and counter-proliferation. 

America will always maintain our iron-clad commitment to the security of Israel, ensuring that Israel maintains its qualitative military edge and can protect its territory and people.  Equally, we consistently defend Israel’s legitimacy and security in the UN and other international fora.  In turn, we expect Israel to stand and be counted with the US and other partners on core matters of international law and principle, such as Ukraine.

Drawing on the strength of our alliances and the reach of our partnerships, the United States’ brings together countries in every region of the world to advance our shared security, expand global prosperity, and uphold our fundamental values.    

Let me start with our shared security.  To responsibly end our war in Afghanistan, President Obama first rallied our NATO allies and ISAF partners to contribute more troops to the coalition, surging resources and helping Afghan forces take charge of their nation’s security.  As we bring America’s combat mission to an end, we’ve enlisted our allies and partners to make enduring commitments to Afghanistan’s future—so that Afghan Security Forces continue to have the resources they need, and the Afghan people have our lasting support.

Partnership is also the cornerstone of our counter-terrorism strategy designed to meet a threat that is now more diffuse and decentralized.  Core al-Qa’ida is diminished, but its affiliates and off-shoots increasingly threaten the U.S. and our partners, as we are witnessing this week in Mosul.  The United States has been fast to provide necessary support for the people and government of Iraq under our Strategic Framework Agreement, and we are working together to roll back aggression and counter the threat that the Islamic State of Iraq and Levant poses to the people of the region.  Yet, as President Obama said at West Point, we must do more to strengthen our partners’ capacity to defeat the terrorist threat on their home turf by providing them the necessary training, equipment and support.  That is why the President is asking Congress for a new Counterterrorism Partnership Fund of up to $5 billion to assist nations on the frontlines of terrorism to fight al-Qa’ida, its affiliates, and groups that embrace its violent extremist ideology.   

To shrink terrorist safe-havens and end civil conflicts, which can be breeding grounds for transnational threats, we continue to lead the international community to strengthen the foundations of peace and security.  The U.S. is the largest supporter of UN peace operations, which both reduce the need to deploy our own armed forces and mitigate the risks that fragile and failed states pose.  When violence in South Sudan broke out in December, and the world’s youngest country reached the brink of all-out war, the United States led the Security Council to augment the UN mission in South Sudan and re-focus it on protecting civilians, while we recruited, trained and equipped additional peacekeepers.  Since December, nearly 2,000 more troops have surged into South Sudan, with approximately another 1,700 expected this month. 

In Syria, by contrast, we have seen the failure of the UN Security Council to act effectively, as Russia and China have four times used their vetoes to protect Assad.  With fighting escalating, terrorist groups associated with al-Qa’ida are gaining a greater foothold in Syria, the horrific humanitarian costs are mounting, and the stability of neighboring countries is threatened.  So, while Russia and Iran continue to prop up the regime, the United States is working with our partners through non-traditional channels to provide critical humanitarian assistance and, through the London-11 group, to ramp up our coordinated support for the moderate, vetted Syrian opposition— both political and military.      

Yet, even as we strongly oppose Russia on Syria and Ukraine, we continue to work together to eliminate Assad’s chemical weapons and to prevent Iran from obtaining a nuclear weapon.  We built an unprecedented sanctions regime to pressure Iran while keeping the door open to diplomacy.  As a consequence, working with the P5+1, we’ve halted Iran’s progress toward a nuclear weapon and rolled it back in key respects.  Now, we are testing whether we can reach a comprehensive solution that resolves peacefully the international community’s concerns about Iran’s nuclear program and bolsters our shared security.

In today’s world, the reality is: many transnational security challenges can only be addressed through collective action.  Take the threat of nuclear material in terrorist hands.  One unlocked door at any of the facilities worldwide that house weapons-usable material is a threat to everyone.  That’s why President Obama created the Nuclear Security Summit.  So far, 12 countries and 24 nuclear facilities have rid themselves of highly-enriched uranium and plutonium.  Dozens of nations have increased security at their nuclear storage sites, built counter-smuggling teams, or enhanced their nuclear security training.  Our nuclear security regime is stronger today, because we created a coalition to address the problem, and we’ll keep the momentum going when we host the fourth Nuclear Security Summit in 2016.

Consider, as well, infectious diseases like MERS, bird flu or Ebola, which present yet another type of threat to our security.  In 2012, 80 percent of countries failed to meet the World Health Organization’s deadline for preparedness against outbreaks.  The international community needed a shot in the arm.  So, the United States brought together partners from more than 30 countries and multiple international institutions to develop the Global Health Security Agenda, which we launched in February.  Our strategy, backed by concrete commitments, will move us towards a system that reports outbreaks in real time and ensures nations have the resources to contain localized problems before they become global pandemics.

As we confront the grave and growing threat of climate change, the United States is leading the world by example.  As National Security Advisor, part of my job is to focus on any threat that could breed conflict, migration, and natural disasters.  Climate change is just such a creeping national security crisis, and it is one of our top global priorities. 

Our new rule, announced last week, to reduce carbon pollution from power plants by 30 percent compared to 2005 levels is the most ambitious climate action ever taken in the U.S.  It’s the centerpiece of our broader climate action plan.  And, as we work toward the meeting in Paris next year to define a new global framework for tackling climate change, we’re challenging other major economies to step up too.  We’re working intensively with China, the world’s biggest emitter, to bend down their emissions curve as fast as possible.  We’ve built international coalitions to address short-lived climate pollutants like black carbon, HFCs and methane.  And, we’ve led in encouraging private investment in green infrastructure projects overseas, while reducing incentives for high-carbon energy investment.    

Our security also relies on defining and upholding rules that govern our shared spaces—rules that reject aggression, impede the ability of large nations to bully smaller ones, and establish ways to resolve conflicts peacefully.  A key element of our Asia Rebalance is collaborating with our partners to strengthen regional institutions and international norms.  That’s why we are working with ASEAN to advance a code of conduct for the South China Sea that would enhance maritime security, reinforce international law, and strengthen the regional rules of the road. 

Similarly, we are building partnerships to set standards of behavior to protect the open, reliable, and interoperable Internet, and to hold accountable those who engage in malicious cyber activity.  That’s why we’re working with our partners to expand international law enforcement cooperation and ensure that emerging norms, including the protection of intellectual property and civilian infrastructure, are respected in cyberspace.   For example, last week, working with 10 countries and numerous private sector partners, we successfully disrupted a “botnet” that had been used to steal hundreds of millions of dollars and filed criminal charges against its Russia-based administrator.  Last month, the Department of Justice indicted five Chinese military officials for hacking our nation’s corporate computers, making it clear there’s no room for government-sponsored theft in cyberspace for commercial gain.  We are working with our allies through efforts like the Freedom On-Line Coalition and the Internet Governance Forum to preserve the open Internet as driver for human rights and economic prosperity.

This brings me to the second key reason we mobilize collective action—to expand our shared prosperity.  In 2009, facing the biggest financial crisis since the Great Depression, President Obama led to establish the G20 as the premier forum for international economic cooperation.  We needed more voices at the table, writing the rules for the global economy and committing to dramatic measures to restore growth.  Our efforts included mobilizing more resources for the IMF and World Bank to support the most vulnerable countries.  And, thanks to a broad and concerted international effort, the global economy has turned the corner.

Last year, we played a key role in enabling the 157 members of the WTO to reach a landmark agreement that will modernize the entire international trading system.  In every region of the world, we’ve brought nations together to increase trade and develop high-standard agreements to further boost growth and job creation.  This is a key pillar of our rebalance to Asia, where we’re working with 12 economies, representing almost 40 percent of global GDP, to finalize an ambitious Trans-Pacific Partnership.  With the Trans-Atlantic Trade and Investment Partnership, we’re taking what is already the largest trading partnership in the world to a new level.  To increase trade both within Africa and between Africa and the United States, we will join with Congress to extend and update the African Growth and Opportunity Act before it expires next year. 

In regions brimming with economic potential, including Africa, Latin America and Southeast Asia, we’re supporting entrepreneurship and fostering private sector investment.  Our Power Africa initiative will double access to electricity across the continent through more than $15 billion in private sector commitments.  We’re assisting young people throughout Africa and South East Asia to develop their business and entrepreneurship skills, as well as their leadership. 

As we approach 2015, we’re pressing our partners to deliver on the Millennium Development Goals and to devise bold new goals that will guide the next phase of the fight against poverty.  Building on the extraordinary progress in many developing countries, our approach isn’t simply about pledging more money, it’s about bringing together resources and expertise from every sector to do more with what we have and to support models of economic growth that fuel new markets.  We’re building public-private partnerships, investing in academic breakthroughs, supporting non-profits that translate ideas into action, and creating stronger connections among them all.   

Take, for example, the progress we’ve made in agricultural development.  Back in 2009, at the G8 meeting in L’Aquila, President Obama made food security a global priority backed by billions of dollars in international commitments.  In 2012, the President launched the New Alliance for Food Security and Nutrition, which has now grown to ten African countries, more than 160 companies, and delivered more than $7 billion in responsible planned investments in African agriculture.  And through our Feed the Future partnerships, millions of smallholder farmers are planting better seeds, using better fertilizers, and seeing their incomes rise. 

Which leads me to the third key reason we mobilize collective action.  For, however much we might like to, we rarely can force nations to respect the rights of their citizens.  So we must catalyze the international community to uphold universal values, build broad coalitions to advance human rights, and impose costs on those who violate them.  

Human rights must be protected for everyone, especially traditionally marginalized communities such as ethnic or religious minorities, LGBT persons, migrant workers, and people with disabilities.  That’s why President Obama decided to join the UN Human Rights Council, so we could lead in reforming that flawed institution from within.  In fact, we have made it more effective.  Because of our efforts, the Council has spent far more time spotlighting abuses in Qadhafi’s Libya, Syria, Sudan, North Korea and Iran than demonizing Israel. 

At the same time, the Open Government Partnership initiated by President Obama in 2011, has grown from eight countries to 64, all working together to strengthen accountable and transparent governance.  Our Equal Futures Partnership unites two dozen countries in a commitment to take concrete steps to empower women in their societies both economically and politically.  And, as civil society comes under attack in more and more places, we’re bringing countries and peoples together to counter restrictions and strengthen protections for civil society.

Moreover, we’ve focused the global community on elevating that most basic aspect of human dignity—the health and well-being of the most vulnerable people.  We’re partnering with nations that invest in their health systems.  We’re working with NGOs to improve child and maternal health, end preventable diseases, and make progress towards a goal that was inconceivable just a decade ago—the world’s first AIDS-free generation. 

Across all these vital and far-reaching challenges, we continue to bring the resources of the United States and the reach of our partnerships to bear to forge a safer and more prosperous world.  Our goals are bold and won’t be realized overnight, but the essence of U.S. leadership, as always, remains our ambition, our determination, and our dauntless vision of the possible – the pursuit of a world free of nuclear weapons; a world where extreme poverty is no more; where people are free to choose their own leaders; and where no child’s potential is cut short by a circumstance of her birth. 

We’ve earned our unparalleled position in the world through decades of responsible leadership.  We affirm our exceptionalism by working tirelessly to strengthen the international system we helped build.  We affirm it daily with our painstaking efforts to marshal international support and rally nations behind our leadership.  We affirm it by taking strong action when we see rules and norms broken by those who try to game the system for their own gain.  As President Obama told those graduating cadets at West Point, “What makes us exceptional is not our ability to flout international norms and the rule of law; it’s our willingness to affirm them through our actions.” 

As we leave an era of American foreign policy dominated by war, we are in a much stronger position to shape a more just and secure peace.  In doing so, we will be vigilant against threats to our security, but we also recognize that we are stronger still when we mobilize the world on behalf of our common security and common humanity.  That is the proud tradition of American foreign policy, and that is what’s required to shape a new chapter of American leadership.

Thank you very much. 

The Brussels G7 Summit Declaration

Brussels, Belgium – 5 June 2014

1. We, the Leaders of Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, the President of the European Council and the President of the European Commission, met in Brussels on 4 and 5 June 2014. This Group came together because of shared beliefs and shared responsibilities. We are profoundly committed to the values of freedom and democracy, and their universality and to fostering peace and security. We believe in open economies, open societies and open governments, including respect for human rights and the rule of law, as the basis for lasting growth and stability. For nearly forty years, we have shown through our actions that collective will can be a powerful catalyst for progress. Our efforts to address major global challenges have also been guided by a commitment to transparency, accountability and partnership with other concerned members of the international community. We remain bound together as a group by these values and this vision. Guided by these shared values and principles, we will continue to work together to meet the challenges of our times. We thank the European Union for hosting this Summit and welcome Germany’s Presidency.

Global Economy

2. Supporting growth and jobs remains our top priority. The global economy has strengthened since we met at Lough Erne, downside risks remain which will need to be managed carefully. Advanced economies are recovering, but continued and sustained growth is needed to bring down unemployment, particularly among young people and the long-term unemployed.

3. We will take further steps to support strong, sustainable and balanced growth, with a common goal of increasing the resilience of our economies. We will present ambitious and comprehensive growth strategies at the G20 Summit in Brisbane, to include action across a broad front including in the areas of investment, small and medium enterprises, employment and participation of women, and trade and innovation, in addition to macroeconomic policies. We will continue to implement our fiscal strategies flexibly to take into account near-term economic conditions, so as to support economic growth and job creation, while putting debt as a share of GDP on a sustainable path.

4. We agreed that 2014 will be the year in which we focus on substantially completing key aspects of the core financial reforms that we undertook in response to the global financial crisis: building resilient financial institutions; ending too-big-to-fail; addressing shadow banking risks; and making derivatives markets safer. We remain committed to the agreed G20 roadmap for work on relevant shadow banking activities with clear deadlines and actions to progress rapidly towards strengthened and comprehensive oversight and regulation appropriate to the systemic risks posed. We will remain vigilant in the face of global risk and vulnerabilities. And we remain committed to tackling tax avoidance including through the G20/Organisation of Economic Cooperation and Development (OECD) Base Erosion and Profit Shifting Action Plan as set out in the agreed timetable, and tax evasion, where we look forward to the rapid implementation of the new single global standard for automatic exchange of tax information. We call on all jurisdictions to take similar action.

5. Trade and investment are key engines for jobs and growth. We reaffirm our commitment to keep our markets open and to fight all forms of protectionism including through standstill and rollback. We are committed to strengthening the rules-based multilateral trading system. We will protect and promote investment and maintain a level playing field for all investors. International standards for public export finance are crucial for avoiding or reducing distortions in global trade. Since we met at Lough Erne, we have made substantial progress on major trade negotiations: Canada-EU; Japan-EU; Canada-Japan; EU-US; the Trans-Pacific Partnership; and the Trade in Services Agreement. We aim to finalise them as soon as possible. We are committed to liberalising trade in environmental goods and services, including through an Environmental Goods agreement. We will work to conclude an expanded Information Technology Agreement as soon as possible. These agreements and initiatives can help support and will be consistent with the multilateral trading system and act as building blocks for future multilateral deals. We welcome the successful outcomes of the 9th World Trade Organisation (WTO) Ministerial Conference. We will prioritise full and swift implementation of the Bali Package, in particular the Trade Facilitation Agreement. We will continue to provide, within our current Aid for Trade commitments, substantial support and capacity building to help implement this agreement, in particular to the benefit of the Least Developed Countries. We fully support efforts in the WTO to secure swift agreement to a balanced work programme for completing the Doha Round.

Energy

6. The use of energy supplies as a means of political coercion or as a threat to security is unacceptable. The crisis in Ukraine makes plain that energy security must be at the centre of our collective agenda and requires a step change to our approach to diversifying energy supplies and modernising our energy infrastructure. Under the Rome G7 Energy Initiative, we will identify and implement concrete domestic policies by each of our governments separately and together, to build a more competitive, diversified, resilient and low-carbon energy system. This work will be based on the core principles agreed by our Ministers of Energy on May 5-6 2014, in Rome:

  • Development of flexible, transparent and competitive energy markets, including gas markets.
  • Diversification of energy fuels, sources and routes, and encouragement of indigenous sources of energy supply.
  • Reducing our greenhouse gas emissions, and accelerating the transition to a low carbon economy as a key contribution to sustainable energy security.
  • Enhancing energy efficiency in demand and supply, and demand response management.
  • Promoting deployment of clean and sustainable energy technologies and continued investment in research and innovation.
  • Improving energy systems resilience by promoting infrastructure modernization and supply and demand policies that help withstand systemic shocks.
  • Putting in place emergency response systems, including reserves and fuel substitution for importing countries, in case of major energy disruptions.

7. Based on these principles we will take the following immediate actions:

  • We will complement the efforts of the European Commission to develop emergency energy plans for winter 2014-2015 at a regional level.
  • Working with international organisations such as the International Energy Agency (IEA), the International Renewable Energy Agency, and the international financial institutions, we will supply technical assistance, including leveraging the private sector, and facilitate exchanges with Ukraine and other European countries seeking to develop indigenous hydrocarbon resources and renewable energies, as well as to improve energy efficiency.
  • We will conduct assessments of our energy security resilience and enhance our joint efforts, including on critical infrastructure, transit routes, supply chains and transport.
  • We will ask the IEA, in close cooperation with the European Commission, to present by the end of 2014 options for individual and collective actions of the G7 in the field of gas security.

8. We will also:

  • Promote the use of low carbon technologies (renewable energies, nuclear in the countries which opt to use it, and carbon capture and storage) including those which work as a base load energy source; and
  • Promote a more integrated Liquefied Natural Gas (LNG) market, including through new supplies, the development of transport infrastructures, storage capabilities, and LNG terminals, and further promotion of flexible gas markets, including relaxation of destination clauses and producer-consumer dialogue.

9. We ask our Energy Ministers to take forward this Rome G7 Energy Initiative and report back to us in 2015.

Climate Change

10. Urgent and concrete action is needed to address climate change, as set out in the Intergovernmental Panel on Climate Change’s Fifth Assessment Report. We therefore remain committed to low-carbon economies with a view to doing our part to limit effectively the increase in global temperature below 2°C above pre-industrial levels. We affirm our strong determination to adopt in 2015 a global agreement – a new protocol, another legal instrument or an agreed outcome with legal force under the convention applicable to all parties – that is ambitious, inclusive and reflects changing global circumstances. We will communicate our intended nationally determined contributions well in advance of the 21st session of the Conference of the Parties (COP21) in Paris (by the first quarter of 2015 by those Parties ready to do so) and call on others to follow our lead. We welcome the Climate Summit of the United Nations Secretary General in September and his invitation to all Parties to prepare for ambitious contributions and to deliver concrete action to reduce emissions and strengthen resilience. We look forward to a successful Summit.

11. We reaffirm our support for the Copenhagen Accord commitments to mobilise USD 100 billion per year by 2020 from a wide variety of sources, both public and private, to address the climate mitigation and adaptation needs of developing countries in the context of their meaningful and transparent mitigation actions. We welcome the adoption of the Green Climate Fund’s operating rules and the decision to commence its initial resource mobilisation in the coming months. We remain committed to the elimination of inefficient fossil fuel subsidies and continued discussions in the OECD on how export credits can contribute to our common goal to address climate change. We will strengthen efforts to improve measurement, reporting, verification and accounting of emissions and improve the reporting of international climate finance flows, consistent with agreed decisions of the United Nations Framework Convention on Climate Change. We will work together and with others to phase down the production and consumption of hydrofluorocarbons (HFC) under the Montreal Protocol. We will also continue to take action to promote the rapid deployment of climate-friendly and safe alternatives in motor vehicle air-conditioning and we will promote public procurement of climate-friendly HFC alternatives.

Development

12. The pursuit of sustainable and inclusive development and greater prosperity in all countries remains a foundational commitment that unites our people and our countries. We continue to implement the commitments we have made at previous Summits. To be accountable we will provide a report in 2015 on progress toward their attainment.

13. We commit to work with all partners to agree an ambitious and universal post-2015 agenda, anchored in a single set of clear and measurable goals. That agenda should complete unfinished business of the Millennium Development Goals. It should be centred on people and focused both on the eradication of extreme poverty, promoting development and on balancing the environmental, economic and social dimensions of sustainable development, including climate change. It should also promote peace and security, democratic governance, the rule of law, gender equality and human rights for all. We are committed to build a global partnership with shared responsibility and mutual accountability to ensure its implementation. We await the synthesis report of the United Nations Secretary General in the second half of 2014. We welcome the African Union’s common position.

14. We will continue to promote inclusive and resilient growth in Africa, working with governments and citizens in Africa to enhance governance and transparency, improve infrastructure, notably in the energy sector, eliminate trade barriers, facilitate trade and investment, and strengthen the responsible and sustainable management of natural resources and the revenues they generate. We welcome the active role of the African Union and the New Partnership for Africa’s Development in the process of reforming the Africa Partnership Forum.

15. Security and development are the prerequisite of a lasting peace in regions affected by the scourge of war, terrorism, organized crime, corruption, instability and poverty, notably the Sahel region, Somalia, Nigeria, South Sudan and Central African Republic. We welcome efforts by African partners and the African Union, supported by the international community, aimed at building their capacities to respond to crises and support stabilisation.

16. We confirm our strong commitment to the Deauville Partnership and our support to Arab countries in transition in their efforts to improve governance and stimulate inclusive growth and job creation, particularly for their youth and women. Our Foreign and Finance Ministers will meet in the margins of United Nations General Assembly, and the International Monetary Fund/World Bank Annual Meetings, to take forward the Partnership.

17. We remain committed to work towards common global standards that raise extractives transparency, which ensure disclosure of companies’ payments to all governments. We welcome the progress made among G7 members to implement quickly such standards. These global standards should continue to move towards project-level reporting. Those governments that are signing up to the Extractive Industries Transparency Initiative standard will voluntarily report their revenues. We confirm our commitment to implement fully the extractive partnerships launched in 2013.

18. We today announce a new initiative on Strengthening Assistance for Complex Contract Negotiations (CONNEX) to provide developing country partners with extended and concrete expertise for negotiating complex commercial contracts, focusing initially on the extractives sector, and working with existing fora and facilities to avoid duplication, to be launched in New York in June and to deliver improvements by our next meeting, including as a first step a central resource hub that brings together information and guidance.

19. We will continue to work to tackle tax evasion and illicit flows of finance, including by supporting developing countries to strengthen their tax base and help create stable and sustainable states. We renew our commitment to deny safe haven to the proceeds of corruption, and to the recovery and return of stolen assets. We remain committed to prevent the misuse of companies and other legal arrangements such as trusts to hide financial flows stemming from corruption, tax evasion, money laundering, and other crimes, ensuring that beneficial ownership information is available in a timely fashion to financial intelligence units, tax collection and law enforcement agencies, for example through central registries or other appropriate mechanisms, leading by example in implementing the Financial Action Task Force and other relevant international standards and our national action plans in line with the principles we agreed at Lough Erne. Greater transparency in this area will help developing countries.

20. Recent events illustrate that corruption undermines trust in governments and limits economic growth. We will build on existing efforts, including in the G20, to take additional steps to prevent this. We continue our engagement to and support of United Nations Office on Drugs and Crime and the World Bank’s Stolen Asset Recovery Initiative. We welcome the outcomes of the Ukraine Forum on Asset Recovery and look forward to the third Arab Forum on Asset Recovery. The G7 remains committed to working with governments and global financial centres to follow up on asset recovery efforts.

21. We remain committed to the Muskoka Initiative on maternal, newborn and child health, and welcome the call made at the Saving Every Woman, Every Child Summit in Toronto to accelerate progress on this global priority. In addition we are committed to ensuring sexual and reproductive health and reproductive rights, and ending child, early and forced marriage and female genital mutilation and other harmful practices. The health and well-being of women and children are improved through ensuring universal access to affordable, quality, essential health services, strengthening health, education and child protection systems and improving nutrition and access to immunisation. We recognise the impact of the GAVI Alliance (Global Alliance for Vaccines and Immunisation) and welcome its efforts to expand access to vaccines to an additional 300 million children during 2016-2020. We welcome Germany’s offer to host the second replenishment in early 2015, reaffirm our commitment, and call on other public and private donors to contribute to the replenishment of the GAVI Alliance. We reaffirm our commitment to an AIDS free generation and to the Global Fund to fight AIDS, Tuberculosis and Malaria to reduce the burden of these three major infectious diseases on eligible countries and regions.

22. To address the threat posed by infectious diseases, we support the Global Health Security Agenda and commit to working with partner countries to strengthen compliance with the World Health Organisation’s (WHO) International Health Regulations and enhance health security around the world. We commit to working across sectors to prevent, detect and respond to infectious diseases, whether naturally occurring, accidental, or the result of a deliberate act by a state or non-state actor. That includes building global capacity so that we are better prepared for threats such as the recent Ebola outbreak in West Africa and working together, in close cooperation with WHO, to develop a Global Action Plan on antimicrobial resistance.

23. We continue to strongly support comprehensive approaches to achieve global food security and nutrition. We look forward to the second International Conference on Nutrition in November 2014 and the Expo Milan 2015, which will provide a platform for the global post-2015 debate on sustainability and food and nutrition security. We continue to support the New Alliance for Food Security and Nutrition under strong African leadership and the successful completion of principles for responsible agricultural investment by the Committee on World Food Security. These will better enable smallholder farmers, especially women, to benefit from sustainable rural development. We continue to support the consistent implementation of the Voluntary Guidelines on Responsible Governance of Tenure of Land, Fisheries and Forests, including by building on the land partnerships we launched in 2013 and the Global Agriculture and Food Security Programme.

Ukraine

24. We welcome the successful conduct under difficult circumstances of the election in Ukraine on 25 May. The strong voter turnout underlined the determination of Ukraine’s citizens to determine the future of their country. We welcome Petro Poroshenko as the President-elect of Ukraine and commend him for reaching out to all the people of Ukraine.

25. In the face of unacceptable interference in Ukraine’s sovereign affairs by the Russian Federation, we stand by the Ukrainian government and people. We call upon the illegal armed groups to disarm. We encourage the Ukrainian authorities to maintain a measured approach in pursuing operations to restore law and order. We fully support the substantial contribution made by the Organisation for Security Cooperation in Europe (OSCE) to the de-escalation of the crisis through the Special Monitoring Mission and other OSCE instruments. We commend the willingness of the Ukrainian authorities to continue the national dialogue in an inclusive manner. We welcome the “Memorandum of Peace and Unity” adopted by the Verkhovna Rada on 20 May and express the wish that it can be implemented rapidly. We also encourage the Ukrainian parliament and the Government of Ukraine to continue to pursue constitutional reform in order to provide a framework for deepening and strengthening democracy and accommodating the rights and aspirations of all people in all regions of Ukraine.

26. The G7 are committed to continuing to work with Ukraine to support its economic development, sovereignty and territorial integrity. We encourage the fulfilment of Ukraine’s commitment to pursue the difficult reforms that will be crucial to support economic stability and unlock private sector-led growth. We welcome the decision of the International Monetary Fund (IMF) to approve a $17 billion programme for Ukraine, which will anchor other bilateral and multilateral assistance and loans, including around $18 billion foreseen to date from G7 partners. We welcome the swift disbursement of macro-economic support for Ukraine. We support an international donor coordination mechanism to ensure effective delivery of economic assistance and we welcome the EU’s intention to hold a high-level coordination meeting in Brussels. We welcome ongoing efforts to diversify Ukraine’s sources of gas, including through recent steps in the EU towards enabling reverse gas flow capacities and look forward to the successful conclusion of the talks, facilitated by the European Commission, on gas transit and supply from the Russian Federation to Ukraine.

27. We are united in condemning the Russian Federation’s continuing violation of the sovereignty and territorial integrity of Ukraine. Russia’s illegal annexation of Crimea, and actions to de-stabilise eastern Ukraine are unacceptable and must stop. These actions violate fundamental principles of international law and should be a concern for all nations. We urge the Russian Federation to recognise the results of the election, complete the withdrawal of its military forces on the border with Ukraine, stop the flow of weapons and militants across the border and to exercise its influence among armed separatists to lay down their weapons and renounce violence. We call on the Russian Federation to meet the commitments it made in the Geneva Joint Statement and cooperate with the government of Ukraine as it implements its plans for promoting peace, unity and reform.

28. We confirm the decision by G7 countries to impose sanctions on individuals and entities who have actively supported or implemented the violation of Ukraine’s sovereignty and territorial integrity and who are threatening the peace, security and stability of Ukraine. We are implementing a strict policy of non-recognition with respect to Crimea/Sevastopol, in line with UN General Assembly Resolution 68/262. We stand ready to intensify targeted sanctions and to implement significant additional restrictive measures to impose further costs on Russia should events so require.

29. The projects funded by the donor community to convert the Chernobyl site into a stable and environmentally safe condition have reached an advanced stage of completion. While recognizing the complexity of these first of a kind projects, we call upon all concerned parties to make an additional effort to bring them to a satisfactory conclusion and call upon project parties to keep costs under control. This remains a high priority for us.

Syria

30. We strongly condemn the Assad regime’s brutality which drives a conflict that has killed more than 160,000 people and left 9.3 million in need of humanitarian assistance. We denounce the 3 June sham presidential election: there is no future for Assad in Syria. We again endorse the Geneva Communiqué, which calls for a transitional governing body exercising full executive powers and agreed by mutual consent, based on a vision for a united, inclusive and democratic Syria. We strongly condemn the violations of international humanitarian law and human rights and indiscriminate artillery shelling and aerial bombardment by the Syrian regime. There is evidence that extremist groups have also perpetrated grave human rights abuses. All those responsible for such abuses must be held to account. We welcome the commitment of the National Coalition and Free Syrian Army to uphold international law. We deplore Russia and China’s decision to veto the UN Security Council (UNSC) Resolution draft authorising referral to the International Criminal Court and demanding accountability for the serious and ongoing crimes committed in Syria.

31. We are committed to supporting the neighbouring countries bearing the burden of Syrian refugee inflows and deplore the failure to implement UNSC Resolution 2139 on humanitarian assistance. We urge all parties to the conflict to allow access to aid for all those in need, by the most direct routes, including across borders and conflict lines, and support further urgent action by the UNSC to that end. In our funding we decide to give particular support to humanitarian actors that can reach those most in need, including across borders. We call for the international community to meet the enormous funding needs of the UN appeals for Syria and its neighbours. We resolve to intensify our efforts to address the threat arising from foreign fighters travelling to Syria. We are deeply concerned by allegations of repeated chemical agent use and call on all parties in Syria to cooperate fully with the Organisation for the Prohibition of Chemical Weapons (OPCW) fact-finding mission. We call on Syria to comply with its obligations under UNSC Resolution 2118, decisions of the Executive Council of the OPCW and the Chemical Weapons Convention to ensure the swift removal of its remaining chemical stockpile for destruction, and to destroy its production facilities immediately and answer all questions regarding its declaration to the OPCW.

Libya

32. We reaffirm our support for a free, prosperous and democratic Libya which will play its role in promoting regional stability. We express serious concern at the recent violence and urge all Libyans to engage with the political process through peaceful and inclusive means, underpinned by respect for the rule of law. We urge continued and coordinated engagement by the international community to support the Libyan transition and efforts to promote political dialogue, in coordination with the UN and with the UN Support Mission in Libya fulfilling its mandate in that respect. We ask all in the international community to respect fully Libyan’s sovereignty and the principle of non-intervention in its affairs. In this framework, we commend the proposal of the High National Electoral Commission, endorsed by the General National Congress, to convene the elections on June 25. We emphasise the importance of these elections in restarting the political process and appreciate the vital work of the Constitution Drafting Assembly.

Mali and Central African Republic

33. We welcome the ceasefire signed on May 23 by the Malian Government and armed groups in the North of Mali, thanks to efforts by the African Union, through its Presidency, and the UN. We reaffirm our strong commitment to a political solution and to an inclusive dialogue process that must start without delay, as prescribed by the Ouagadougou agreement and UNSC decisions. We fully support the United Nation’s Multidimensional Integrated Stabilisation Mission in Mali efforts in stabilising the country and, with the commitment of neighbouring countries, including Algeria, Mauritania and the Economic Community of West African States, in working for a durable settlement respectful of the unity, territorial integrity and national sovereignty of Mali.

34. We commend the role played on the ground in the Central African Republic by the AU-led International Support Mission to the Central African Republic, together with the forces sent by France and the European Union, to support the transition and encourage the Transitional Authorities to take urgent concrete steps toward holding free, fair, transparent and inclusive elections. We fully support the UN efforts in the areas of security, reconciliation, preparation of the elections, and humanitarian assistance.

Iran

35. We reaffirm our strong commitment to a diplomatic resolution of the Iranian nuclear issue and welcome the efforts by the E3+3, led by High Representative Ashton, and Iran to negotiate a comprehensive solution that provides confidence in the exclusively peaceful nature of Iran’s nuclear programme. We underline the importance of the continuing effective implementation by the E3+3 and Iran of the Joint Plan of Action. We call on Iran to cooperate fully with the International Atomic Energy Agency on verification of Iran’s nuclear activities and to resolve all outstanding issues, including, critically, those relating to possible military dimensions. We strongly urge Iran to fully respect its human rights obligations. We call on Iran to play a more constructive role in supporting regional security, in particular in Syria, and to reject all acts of terrorism and terrorist groups.

North Korea

36. We strongly condemn North Korea’s continued development of its nuclear and ballistic missile programmes. We urge North Korea to abandon all nuclear weapons and existing nuclear and ballistic missile programmes and to comply fully with its obligations under relevant UNSC resolutions and commitments under the September 2005 Joint Statement of the Six-Party Talks. We call on the international community to implement fully UN sanctions. We reiterate our grave concerns over the ongoing systematic, widespread and gross human rights violations in North Korea documented in the report of the UN Commission of Inquiry, and urge North Korea to take immediate steps to address these violations, including on the abductions issue, and cooperate fully with all relevant UN bodies. We continue to work to advance accountability for North Korea’s serious human rights violations.

Middle East Peace Process

37. We fully support the United States’ efforts to secure a negotiated two-state solution. We regret that greater progress has not been made by the parties and urge them to find the common ground and political strength needed to resume the process. A negotiated two-state solution remains the only way to resolve the conflict. We call on both sides to exercise maximum restraint and to avoid any unilateral action which may further undermine peace efforts and affect the viability of a two-state solution.

Afghanistan

38. We renew our long-term commitment to a democratic, sovereign, and unified Afghanistan and our enduring partnership with the Government of Afghanistan based on the principles of mutual respect and mutual accountability. The first round of presidential elections and the provincial council elections marked a historic achievement, especially for the more than 2.5 million women who voted, and we look forward to the completion of the electoral process. We continue to assist the Government of Afghanistan to strengthen their institutions of governance, reduce corruption, combat terrorism, support economic growth, and counter narcotics. We continue to actively support an inclusive Afghan-led and Afghan-owned process of reconciliation.

Maritime Navigation and Aviation

39. We reaffirm the importance of maintaining a maritime order based upon the universally-agreed principles of international law. We remain committed to international cooperation to combat piracy and other maritime crime, consistent with international law and internationally recognised principles of jurisdiction in international waters. We are deeply concerned by tensions in the East and South China Sea. We oppose any unilateral attempt by any party to assert its territorial or maritime claims through the use of intimidation, coercion or force. We call on all parties to clarify and pursue their territorial and maritime claims in accordance with international law. We support the rights of claimants to seek peaceful resolution of disputes in accordance with international law, including through legal dispute settlement mechanisms. We also support confidence-building measures. We underscore the importance of the freedom of navigation and overflight and also the effective management of civil air traffic based on international law and International Civil Aviation Organization standards and practices.

Other issues

40. We reaffirm our commitment to the protection and promotion of all human rights and fundamental freedoms, including religious freedom, for all persons. We recognise the need to show unprecedented resolve to promote gender equality, to end all forms of discrimination and violence against women and girls, to end child, early and forced marriage and to promote full participation and empowerment of all women and girls. We look forward to the Global Summit to End Sexual Violence in Conflict taking place in London later this month.

41. We reiterate our condemnation of terrorism and our commitment to cooperate in all relevant fora to prevent and respond to terrorism effectively, and in a comprehensive manner, while respecting human rights and the rule of law. We condemn the kidnapping of hundreds of schoolgirls by Boko Haram as an unconscionable crime and intend do everything possible to support the Nigerian government to return these young women to their homes and to bring the perpetrators to justice.

42. We confirm that non-proliferation/disarmament issues remain a top priority and welcome the G7 Non-proliferation Directors Group statement issued today.

The Brussels G-7 Summit Declaration

The White House

Office of the Press Secretary

For Immediate Release

June 05, 2014

Brussels, Belgium
June 5, 2014

1.       We, the Leaders of Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, the President of the European Council and the President of the European Commission, met in Brussels on 4 and 5 June 2014. This Group came together because of shared beliefs and shared responsibilities. We are profoundly committed to the values of freedom and democracy, and their universality and to fostering peace and security. We believe in open economies, open societies and open governments, including respect for human rights and the rule of law, as the basis for lasting growth and stability.  For nearly forty years, we have shown through our actions that collective will can be a powerful catalyst for progress. Our efforts to address major global challenges have also been guided by a commitment to transparency, accountability and partnership with other concerned members of the international community. We remain bound together as a group by these values and this vision. Guided by these shared values and principles, we will continue to work together to meet the challenges of our times. We thank the European Union for hosting this Summit and welcome Germany’s Presidency.

Global Economy

2.       Supporting growth and jobs remains our top priority. The global economy has strengthened since we met at Lough Erne, downside risks remain which will need to be managed carefully. Advanced economies are recovering, but continued and sustained growth is needed to bring down unemployment, particularly among young people and the long-term unemployed.

3.       We will take further steps to support strong, sustainable and balanced growth, with a common goal of increasing the resilience of our economies. We will present ambitious and comprehensive growth strategies at the G-20 Summit in Brisbane, to include action across a broad front including in the areas of investment, small and medium enterprises, employment and participation of women, and trade and innovation, in addition to macroeconomic policies. We will continue to implement our fiscal strategies flexibly to take into account near-term economic conditions, so as to support economic growth and job creation, while putting debt as a share of GDP on a sustainable path.

4.       We agreed that 2014 will be the year in which we focus on substantially completing key aspects of the core financial reforms that we undertook in response to the global financial crisis: building resilient financial institutions; ending too-big-to-fail; addressing shadow banking risks; and making derivatives markets safer. We remain committed to the agreed G-20 roadmap for work on relevant shadow banking activities with clear deadlines and actions to progress rapidly towards strengthened and comprehensive oversight and regulation appropriate to the systemic risks posed. We will remain vigilant in the face of global risk and vulnerabilities. And we remain committed to tackling tax avoidance including through the G-20/Organisation of Economic Cooperation and Development (OECD) Base Erosion and Profit Shifting Action Plan as set out in the agreed timetable, and tax evasion, where we look forward to the rapid implementation of the new single global standard for automatic exchange of tax information. We call on all jurisdictions to take similar action.

5.       Trade and investment are key engines for jobs and growth. We reaffirm our commitment to keep our markets open and to fight all forms of protectionism including through standstill and rollback. We are committed to strengthening the rules-based multilateral trading system. We will protect and promote investment and maintain a level playing field for all investors. International standards for public export finance are crucial for avoiding or reducing distortions in global trade. Since we met at Lough Erne, we have made substantial progress on major trade negotiations: Canada-EU; Japan-EU; Canada-Japan; EU-US; the Trans-Pacific Partnership; and the Trade in Services Agreement. We aim to finalise them as soon as possible. We are committed to liberalising trade in environmental goods and services, including through an Environmental Goods agreement. We will work to conclude an expanded Information Technology Agreement as soon as possible. These agreements and initiatives can help support and will be consistent with the multilateral trading system and act as building blocks for future multilateral deals. We welcome the successful outcomes of the 9th World Trade Organisation (WTO) Ministerial Conference.  We will prioritise full and swift implementation of the Bali Package, in particular the Trade Facilitation Agreement. We will continue to provide, within our current Aid for Trade commitments, substantial support and capacity building to help implement this agreement, in particular to the benefit of the Least Developed Countries. We fully support efforts in the WTO to secure swift agreement to a balanced work programme for completing the Doha Round.

Energy

6.       The use of energy supplies as a means of political coercion or as a threat to security is unacceptable. The crisis in Ukraine makes plain that energy security must be at the centre of our collective agenda and requires a step change to our approach to diversifying energy supplies and modernising our energy infrastructure. Under the Rome G-7 Energy Initiative, we will identify and implement concrete domestic policies by each of our governments separately and together, to build a more competitive, diversified, resilient and low-carbon energy system.  This work will be based on the core principles agreed by our Ministers of Energy on May 5-6 2014, in Rome:

  • Development of flexible, transparent and competitive energy markets, including gas markets.
  • Diversification of energy fuels, sources and routes, and encouragement of indigenous sources of energy supply.
  • Reducing our greenhouse gas emissions, and accelerating the transition to a low carbon economy as a key contribution to sustainable energy security.
  • Enhancing energy efficiency in demand and supply, and demand response management.
  • Promoting deployment of clean and sustainable energy technologies and continued investment in research and innovation.
  • Improving energy systems resilience by promoting infrastructure modernization and supply and demand policies that help withstand systemic shocks.
  • Putting in place emergency response systems, including reserves and fuel substitution for importing countries, in case of major energy disruptions.

7.       Based on these principles we will take the following immediate actions:

  • We will complement the efforts of the European Commission to develop emergency energy plans for winter 2014-2015 at a regional level.
  • Working with international organisations such as the International Energy Agency  (IEA), the International Renewable Energy Agency, and the international financial institutions, we will supply technical assistance, including leveraging the private sector, and facilitate exchanges with Ukraine and other European countries seeking to develop indigenous hydrocarbon resources and renewable energies, as well as to improve energy efficiency.
  • We will conduct assessments of our energy security resilience and enhance our joint efforts, including on critical infrastructure, transit routes, supply chains and transport.
  • We will ask the IEA, in close cooperation with the European Commission, to present by the end of 2014 options for individual and collective actions of the G-7 in the field of gas security.

8.       We will also:

  • Promote the use of low carbon technologies (renewable energies, nuclear in the countries which opt to use it, and carbon capture and storage) including those which work as a base load energy source; and
  • Promote a more integrated Liquefied Natural Gas (LNG) market, including through new supplies, the development of transport infrastructures, storage capabilities, and LNG terminals, and further promotion of flexible gas markets, including relaxation of destination clauses and producer-consumer dialogue.

9.       We ask our Energy Ministers to take forward this Rome G-7 Energy Initiative and report back to us in 2015.

Climate Change

10.      Urgent and concrete action is needed to address climate change, as set out in the Intergovernmental Panel on Climate Change’s Fifth Assessment Report. We therefore remain committed to low-carbon economies with a view to doing our part to limit effectively the increase in global temperature below 2°C above pre-industrial levels. We affirm our strong determination to adopt in 2015 a global agreement – a new protocol, another legal instrument or an agreed outcome with legal force under the convention applicable to all parties – that is ambitious, inclusive and reflects changing global circumstances. We will communicate our intended nationally determined contributions well in advance of the 21st session of the Conference of the Parties (COP21) in Paris (by the first quarter of 2015 by those Parties ready to do so) and call on others to follow our lead. We welcome the Climate Summit of the United Nations Secretary General in September and his invitation to all Parties to prepare for ambitious contributions and to deliver concrete action to reduce emissions and strengthen resilience. We look forward to a successful Summit.

11.      We reaffirm our support for the Copenhagen Accord commitments to mobilise USD 100 billion per year by 2020 from a wide variety of sources, both public and private, to address the climate mitigation and adaptation needs of developing countries in the context of their meaningful and transparent mitigation actions. We welcome the adoption of the Green Climate Fund’s operating rules and the decision to commence its initial resource mobilisation in the coming months.  We remain committed to the elimination of inefficient fossil fuel subsidies and continued discussions in the OECD on how export credits can contribute to our common goal to address climate change. We will strengthen efforts to improve measurement, reporting, verification and accounting of emissions and improve the reporting of international climate finance flows, consistent with agreed decisions of the United Nations Framework Convention on Climate Change.  We will work together and with others to phase down the production and consumption of hydrofluorocarbons (HFC) under the Montreal Protocol. We will also continue to take action to promote the rapid deployment of climate-friendly and safe alternatives in motor vehicle air-conditioning and we will promote public procurement of climate-friendly HFC alternatives.

Development

12.      The pursuit of sustainable and inclusive development and greater prosperity in all countries remains a foundational commitment that unites our people and our countries. We continue to implement the commitments we have made at previous Summits. To be accountable we will provide a report in 2015 on progress toward their attainment.

13.      We commit to work with all partners to agree an ambitious and universal post-2015 agenda, anchored in a single set of clear and measurable goals. That agenda should complete unfinished business of the Millennium Development Goals. It should be centred on people and focused both on the eradication of extreme poverty, promoting development and on balancing the environmental, economic and social dimensions of sustainable development, including climate change. It should also promote peace and security, democratic governance, the rule of law, gender equality and human rights for all. We are committed to build a global partnership with shared responsibility and mutual accountability to ensure its implementation. We await the synthesis report of the United Nations Secretary General in the second half of 2014. We welcome the African Union’s common position.

14.      We will continue to promote inclusive and resilient growth in Africa, working with governments and citizens in Africa to enhance governance and transparency, improve infrastructure, notably in the energy sector, eliminate trade barriers, facilitate trade and investment, and strengthen the responsible and sustainable management of natural resources and the revenues they generate. We welcome the active role of the African Union and the New Partnership for Africa’s Development in the process of reforming the Africa Partnership Forum.

15.      Security and development are the prerequisite of a lasting peace in regions affected by the scourge of war, terrorism, organized crime, corruption, instability and poverty, notably the Sahel region, Somalia, Nigeria, South Sudan and Central African Republic. We welcome efforts by African partners and the African Union, supported by the international community, aimed at building their capacities to respond to crises and support stabilisation.

16.      We confirm our strong commitment to the Deauville Partnership and our support to Arab countries in transition in their efforts to improve governance and stimulate inclusive growth and job creation, particularly for their youth and women. Our Foreign and Finance Ministers will meet in the margins of United Nations General Assembly, and the International Monetary Fund/World Bank Annual Meetings, to take forward the Partnership.

17.      We remain committed to work towards common global standards that raise extractives transparency, which ensure disclosure of companies’ payments to all governments.  We welcome the progress made among G-7 members to implement quickly such standards. These global standards should continue to move towards project-level reporting. Those governments that are signing up to the Extractive Industries Transparency Initiative standard will voluntarily report their revenues. We confirm our commitment to implement fully the extractive partnerships launched in 2013.

18.      We today announce a new initiative on Strengthening Assistance for Complex Contract Negotiations (CONNEX) to provide developing country partners with extended and concrete expertise for negotiating complex commercial contracts, focusing initially on the extractives sector, and working with existing fora and facilities to avoid duplication, to be launched in New York in June and to deliver improvements by our next meeting, including as a first step a central resource hub that brings together information and guidance.

19.      We will continue to work to tackle tax evasion and illicit flows of finance, including by supporting developing countries to strengthen their tax base and help create stable and sustainable states. We renew our commitment to deny safe haven to the proceeds of corruption, and to the recovery and return of stolen assets. We remain committed to prevent the misuse of companies and other legal arrangements such as trusts to hide financial flows stemming from corruption, tax evasion, money laundering, and other crimes, ensuring that beneficial ownership information is available in a timely fashion to financial intelligence units, tax collection and law enforcement agencies, for example through central registries or other appropriate mechanisms, leading by example in implementing the Financial Action Task Force and other relevant international standards and our national action plans in line with the principles we agreed at Lough Erne. Greater transparency in this area will help developing countries.

20.      Recent events illustrate that corruption undermines trust in governments and limits economic growth. We will build on existing efforts, including in the G-20, to take additional steps to prevent this. We continue our engagement to and support of United Nations Office on Drugs and Crime and the World Bank’s Stolen Asset Recovery Initiative. We welcome the outcomes of the Ukraine Forum on Asset Recovery and look forward to the third Arab Forum on Asset Recovery. The G-7 remains committed to working with governments and global financial centres to follow up on asset recovery efforts.

21.      We remain committed to the Muskoka Initiative on maternal, newborn and child health, and welcome the call made at the Saving Every Woman, Every Child Summit in Toronto to accelerate progress on this global priority. In addition we are committed to ensuring sexual and reproductive health and reproductive rights, and ending child, early and forced marriage and female genital mutilation and other harmful practices. The health and well-being of women and children are improved through ensuring universal access to affordable, quality, essential health services, strengthening health, education and child protection systems and improving nutrition and access to immunisation. We recognise the impact of the GAVI Alliance (Global Alliance for Vaccines and Immunisation) and welcome its efforts to expand access to vaccines to an additional 300 million children during 2016-2020. We welcome Germany’s offer to host the second replenishment in early 2015, reaffirm our commitment, and call on other public and private donors to contribute to the replenishment of the GAVI Alliance. We reaffirm our commitment to an AIDS free generation and to the Global Fund to fight AIDS, Tuberculosis and Malaria to reduce the burden of these three major infectious diseases on eligible countries and regions.

22.      To address the threat posed by infectious diseases, we support the Global Health Security Agenda and commit to working with partner countries to strengthen compliance with the World Health Organisation’s (WHO) International Health Regulations and enhance health security around the world.  We commit to working across sectors to prevent, detect and respond to infectious diseases, whether naturally occurring, accidental, or the result of a deliberate act by a state or non-state actor. That includes building global capacity so that we are better prepared for threats such as the recent Ebola outbreak in West Africa and working together, in close cooperation with WHO, to develop a Global Action Plan on antimicrobial resistance.

23.      We continue to strongly support comprehensive approaches to achieve global food security and nutrition. We look forward to the second International Conference on Nutrition in November 2014 and the Expo Milan 2015, which will provide a platform for the global post-2015 debate on sustainability and food and nutrition security. We continue to support the New Alliance for Food Security and Nutrition under strong African leadership and the successful completion of principles for responsible agricultural investment by the Committee on World Food Security. These will better enable smallholder farmers, especially women, to benefit from sustainable rural development. We continue to support the consistent implementation of the Voluntary Guidelines on Responsible Governance of Tenure of Land, Fisheries and Forests, including by building on the land partnerships we launched in 2013 and the Global Agriculture and Food Security Programme.

Ukraine

24.   We welcome the successful conduct under difficult circumstances of the election in Ukraine on 25 May. The strong voter turnout underlined the determination of Ukraine’s citizens to determine the future of their country.  We welcome Petro Poroshenko as the President-elect of Ukraine and commend him for reaching out to all the people of Ukraine.

25.   In the face of unacceptable interference in Ukraine’s sovereign affairs by the Russian Federation, we stand by the Ukrainian government and people. We call upon the illegal armed groups to disarm. We encourage the Ukrainian authorities to maintain a measured approach in pursuing operations to restore law and order. We fully support the substantial contribution made by the Organisation for Security and Cooperation in Europe (OSCE) to the de-escalation of the crisis through the Special Monitoring Mission and other OSCE instruments. We commend the willingness of the Ukrainian authorities to continue the national dialogue in an inclusive manner. We welcome the “Memorandum of Peace and Unity” adopted by the Verkhovna Rada on 20 May and express the wish that it can be implemented rapidly.  We also encourage the Ukrainian parliament and the Government of Ukraine to continue to pursue constitutional reform in order to provide a framework for deepening and strengthening democracy and accommodating the rights and aspirations of all people in all regions of Ukraine.

26.   The G-7 are committed to continuing to work with Ukraine to support its economic development, sovereignty and territorial integrity. We encourage the fulfilment of Ukraine’s commitment to pursue the difficult reforms that will be crucial to support economic stability and unlock private sector-led growth. We welcome the decision of the International Monetary Fund (IMF) to approve a $17 billion programme for Ukraine, which will anchor other bilateral and multilateral assistance and loans, including around $18 billion foreseen to date from G-7 partners.  We welcome the swift disbursement of macro-economic support for Ukraine. We support an international donor coordination mechanism to ensure effective delivery of economic assistance and we welcome the EU’s intention to hold a high-level coordination meeting in Brussels. We welcome ongoing efforts to diversify Ukraine’s sources of gas, including through recent steps in the EU towards enabling reverse gas flow capacities and look forward to the successful conclusion of the talks, facilitated by the European Commission, on gas transit and supply from the Russian Federation to Ukraine.

27.   We are united in condemning the Russian Federation’s continuing violation of the sovereignty and territorial integrity of Ukraine.  Russia’s illegal annexation of Crimea, and actions to de-stabilise eastern Ukraine are unacceptable and must stop. These actions violate fundamental principles of international law and should be a concern for all nations.  We urge the Russian Federation to recognise the results of the election, complete the withdrawal of its military forces on the border with Ukraine, stop the flow of weapons and militants across the border and to exercise its influence among armed separatists to lay down their weapons and renounce violence. We call on the Russian Federation to meet the commitments it made in the Geneva Joint Statement and cooperate with the government of Ukraine as it implements its plans for promoting peace, unity and reform.

28.   We confirm the decision by G-7 countries to impose sanctions on individuals and entities who have actively supported or implemented the violation of Ukraine’s sovereignty and territorial integrity and who are threatening the peace, security and stability of Ukraine. We are implementing a strict policy of non-recognition with respect to Crimea/Sevastopol, in line with UN General Assembly Resolution 68/262. We stand ready to intensify targeted sanctions and to implement significant additional restrictive measures to impose further costs on Russia should events so require.

29.   The projects funded by the donor community to convert the Chernobyl site into a stable and environmentally safe condition have reached an advanced stage of completion. While recognizing the complexity of these first of a kind projects, we call upon all concerned parties to make an additional effort to bring them to a satisfactory conclusion and call upon project parties to keep costs under control. This remains a high priority for us.

Syria

30.   We strongly condemn the Assad regime’s brutality which drives a conflict that has killed more than 160,000 people and left 9.3 million in need of humanitarian assistance. We denounce the 3 June sham presidential election: there is no future for Assad in Syria. We again endorse the Geneva Communiqué, which calls for a transitional governing body exercising full executive powers and agreed by mutual consent, based on a vision for a united, inclusive and democratic Syria.  We strongly condemn the violations of international humanitarian law and human rights and indiscriminate artillery shelling and aerial bombardment by the Syrian regime. There is evidence that extremist groups have also perpetrated grave human rights abuses. All those responsible for such abuses must be held to account. We welcome the commitment of the National Coalition and Free Syrian Army to uphold international law.  We deplore Russia and China’s decision to veto the UN Security Council (UNSC) Resolution draft authorising referral to the International Criminal Court and demanding accountability for the serious and ongoing crimes committed in Syria.

31.   We are committed to supporting the neighbouring countries bearing the burden of Syrian refugee inflows and deplore the failure to implement UNSC Resolution 2139 on humanitarian assistance. We urge all parties to the conflict to allow access to aid for all those in need, by the most direct routes, including across borders and conflict lines, and support further urgent action by the UNSC to that end. In our funding we decide to give particular support to humanitarian actors that can reach those most in need, including across borders. We call for the international community to meet the enormous funding needs of the UN appeals for Syria and its neighbours. We resolve to intensify our efforts to address the threat arising from foreign fighters travelling to Syria. We are deeply concerned by allegations of repeated chemical agent use and call on all parties in Syria to cooperate fully with the Organisation for the Prohibition of Chemical Weapons (OPCW) fact-finding mission. We call on Syria to comply with its obligations under UNSC Resolution 2118, decisions of the Executive Council of the OPCW and the Chemical Weapons Convention to ensure the swift removal of its remaining chemical stockpile for destruction, and to destroy its production facilities immediately and answer all questions regarding its declaration to the OPCW.

Libya

32.   We reaffirm our support for a free, prosperous and democratic Libya which will play its role in promoting regional stability.  We express serious concern at the recent violence and urge all Libyans to engage with the political process through peaceful and inclusive means, underpinned by respect for the rule of law.  We urge continued and coordinated engagement by the international community to support the Libyan transition and efforts to promote political dialogue, in coordination with the UN and with the UN Support Mission in Libya fulfilling its mandate in that respect.   We ask all in the international community to respect fully Libyan’s sovereignty and the principle of non-intervention in its affairs. In this framework, we commend the proposal of the High National Electoral Commission, endorsed by the General National Congress, to convene the elections on June 25. We emphasise the importance of these elections in restarting the political process and appreciate the vital work of the Constitution Drafting Assembly.

Mali and Central African Republic

33.   We welcome the ceasefire signed on May 23 by the Malian Government and armed groups in the North of Mali, thanks to efforts by the African Union, through its Presidency, and the UN. We reaffirm our strong commitment to a political solution and to an inclusive dialogue process that must start without delay, as prescribed by the Ouagadougou agreement and UNSC decisions. We fully support the United Nation’s Multidimensional Integrated Stabilisation Mission in Mali efforts in stabilising the country and, with the commitment of neighbouring countries, including Algeria, Mauritania and the Economic Community of West African States, in working for a durable settlement respectful of the unity, territorial integrity and national sovereignty of Mali.

34.   We commend the role played on the ground in the Central African Republic by the AU-led International Support Mission to the Central African Republic, together with the forces sent by France and the European Union, to support the transition and encourage the Transitional Authorities to take urgent concrete steps toward holding free, fair, transparent and inclusive elections. We fully support the UN efforts in the areas of security, reconciliation, preparation of the elections, and humanitarian assistance.

Iran

35.   We reaffirm our strong commitment to a diplomatic resolution of the Iranian nuclear issue and welcome the efforts by the E3+3, led by High Representative Ashton, and Iran to negotiate a comprehensive solution that provides confidence in the exclusively peaceful nature of Iran’s nuclear programme. We underline the importance of the continuing effective implementation by the E3+3 and Iran of the Joint Plan of Action. We call on Iran to cooperate fully with the International Atomic Energy Agency on verification of Iran’s nuclear activities and to resolve all outstanding issues, including, critically, those relating to possible military dimensions.   We strongly urge Iran to fully respect its human rights obligations. We call on Iran to play a more constructive role in supporting regional security, in particular in Syria, and to reject all acts of terrorism and terrorist groups.

North Korea

36.   We strongly condemn North Korea’s continued development of its nuclear and ballistic missile programmes.  We urge North Korea to abandon all nuclear weapons and existing nuclear and ballistic missile programmes and to comply fully with its obligations under relevant UNSC resolutions and commitments under the September 2005 Joint Statement of the Six-Party Talks. We call on the international community to implement fully UN sanctions. We reiterate our grave concerns over the ongoing systematic, widespread and gross human rights violations in North Korea documented in the report of the UN Commission of Inquiry, and urge North Korea to take immediate steps to address these violations, including on the abductions issue, and cooperate fully with all relevant UN bodies. We continue to work to advance accountability for North Korea’s serious human rights violations.

Middle East Peace Process

37.   We fully support the United States’ efforts to secure a negotiated two-state solution.  We regret that greater progress has not been made by the parties and urge them to find the common ground and political strength needed to resume the process. A negotiated two-state solution remains the only way to resolve the conflict. We call on both sides to exercise maximum restraint and to avoid any unilateral action which may further undermine peace efforts and affect the viability of a two-state solution.

Afghanistan

38.   We renew our long-term commitment to a democratic, sovereign, and unified Afghanistan and our enduring partnership with the Government of Afghanistan based on the principles of mutual respect and mutual accountability. The first round of presidential elections and the provincial council elections marked a historic achievement, especially for the more than 2.5 million women who voted, and we look forward to the completion of the electoral process. We continue to assist the Government of Afghanistan to strengthen their institutions of governance, reduce corruption, combat terrorism, support economic growth, and counter narcotics.  We continue to actively support an inclusive Afghan-led and Afghan-owned process of reconciliation.

Maritime Navigation and Aviation

39. We reaffirm the importance of maintaining a maritime order based upon the universally-agreed principles of international law. We remain committed to international cooperation to combat piracy and other maritime crime, consistent with international law and internationally recognised principles of jurisdiction in international waters. We are deeply concerned by tensions in the East and South China Sea. We oppose any unilateral attempt by any party to assert its territorial or maritime claims through the use of intimidation, coercion or force. We call on all parties to clarify and pursue their territorial and maritime claims in accordance with international law. We support the rights of claimants to seek peaceful resolution of disputes in accordance with international law, including through legal dispute settlement mechanisms.  We also support confidence-building measures. We underscore the importance of the freedom of navigation and overflight and also the effective management of civil air traffic based on international law and International Civil Aviation Organization standards and practices.

Other Issues

40.   We reaffirm our commitment to the protection and promotion of all human rights and fundamental freedoms, including religious freedom, for all persons. We recognise the need to show unprecedented resolve to promote gender equality, to end all forms of discrimination and violence against women and girls, to end child, early and forced marriage and to promote full participation and empowerment of all women and girls. We look forward to the Global Summit to End Sexual Violence in Conflict taking place in London later this month.

41.   We reiterate our condemnation of terrorism and our commitment to cooperate in all relevant fora to prevent and respond to terrorism effectively, and in a comprehensive manner, while respecting human rights and the rule of law. We condemn the kidnapping of hundreds of schoolgirls by Boko Haram as an unconscionable crime and intend do everything possible to support the Nigerian government to return these young women to their homes and to bring the perpetrators to justice.

42.   We confirm that non-proliferation/disarmament issues remain a top priority and welcome the G-7 Non-proliferation Directors Group statement issued today.

Conclusion

43.    We look forward to meeting under the Presidency of Germany in 2015.