of growingr area significance is energy. mexico is one of the 10 largest oil producers in the world. the united states will be number one. mexico is in the top 10. it is one of the largest sources of u.s. oil imports. last december, mexico announced historic energy reform ending the 75 year state monopoly. this committee will be watching closely as mexico finalizes these reforms, which are expected to result in a large, productive influx of private capital and of technology and expertise. right, this will allow mexico's energy sector to thrive , improving u.s. energy security by creating a more reliable source of oil from our close southern neighbor.

a key roletee played in the passage of the u.s., hydro transboundary carbons agreement, paving the way for greater energy exploration. as a mexican official told committee staff in mexico city last week, mexico wants to work with the u.s. and canada to help north america achieve energy independence. course, the biggest threat to mexico's success is the ongoing violence from drug cartels and from criminal organizations tied to those cartels. u.s. efforts with mexico to tackle these transnational criminal organizations must be .onitored and improved after taking a postelection's to consider a review of mexico's national security policy, and with a lot of u.s. aid sitting thehe pipeline, it appears nato administration will

continue partnering closely with both countries have an interest in reducing the capacity of the cartels. reforms already pass in mexico proof that our southern neighbors are serious about liberalizing and modernizing institutions. these improvements in trade and investment should improve our relations. will now turn to the ranking member for any comments you may have. like to begin by thanking you for holding today's hearing. i've been focused on the importance of u.s.-mexico

relations for years. mutualaracterized by mistrust, u.s.-mexico relations are now stronger than ever. the obamaed that administration has prioritized our partnership with mexico from i'm happy tot, and see that secretary kerry has continued her high level engagement with his trip there tomorrow. today, our two economies are tied more closely than ever before. second-largest destination for u.s. exports and the third-largest source of imports. 6 million american jobs rely on commerce with our southern .eighbor the impact of our economic partnership can be felt in every part of our nation. in 2013, mexico was the eighth largest market for exports from my home state of new york with $2.2 billion of goods exported from new york to mexico. i continue to be impressed by mexican president and regard

henrique ptotal -- of nieto. as a result mexico's reforms, there couldn't rating was upgraded. this makes mexico the only latin american country other than chile to obtain this rating. i'm also very pleased at the mexican -- that the mexican congress recently passed a law that allows courts to try cases rights violations committed against soldiers by civilians. recently, these cases were tried in military courts. let me also say that the new measures to protect human rights , to protect their at the cast -- their advocates and journalists. remains a dangerous place for those working to shine a light on abuse and -- on abuses,

corruption and crime. i also urge the state department to provide direct funding for those efforts to help build a safe environment for these men and women doing such important work. as our witness know, i have been a supporter of the initiative since its inception. i've also made clear that we have certain domestic abligations under the merid initiative that demand greater attention. we must do more to stop the illegal flow of firearms from the united states to mexico. in 2009, the government accountability office released a report that i commissioned on this issue. it showed that 87% of the firearms mexican authorities seized and traced between fy 2004 and fy 2008 originated in the united states. today, i am sending a letter to the gao requesting a follow-up report reviewing u.s. efforts to combat firearms trafficking to mexico.

secondly, the enormous u.s. demand for illegal drugs fuels violence unmask in mexico. pleased by the obama administration's efforts to invest in drug prevention and treatment programs, we must continue to do more to stop illegal drug use in our country. thirdly, we must do our part to cut off funding to transnational criminal organizations. this means enforcing our anti-money laundering laws and cracking down on u.s. banks that turn a blind eye to money laundering. without taking the steps, it will be very difficult to and the terrible violence in mexico has claimed more than 70,000 lives over the past seven years. finally, i'd like to emphasize how important it is to both of our countries for the house of representatives to swiftly pass comprehensive immigration reform . we need a new immigration system that opens the doors of opportunity and emphasizes human

dignity. diversity is one of our country's greatest strengths. throughout history, mexico has always been an indispensable part of the fabric of our society. we know from the number of people reaching our shores every year that america remains a beacon of hope and opportunity around the world. the time to fix our system is now. we all know that if the senate bill came to a vote on the floor this afternoon, it would be on the president's desk this evening. i would like to close the thanking awareness for being here today and for the important work ensuring that our u.s. -mexico partnership remains strong. i'm appreciative of the hard work and expertise of our witnesses and look forward to hearing from each of them today. thank you again, mr. chairman, for holding this important hearing and thanks so much once again for working in such a bipartisan way. go to theoing to now chair of the subcommittee on the western hemisphere.

>> thank you, mr. chairman. i want to thank you and ranking member angle for convening today's hearing on are extremely important bilateral relationship with mexico. it is wonderful to see you again, secretary jacobson. you've all done so much to strengthen our relationship with mexico and the rest of the americas. it is a real pleasure working with the. our economic and security partnerships with mexico are .ital 6 million u.s. jobs depend on our trade with mexico. that translates to one and 24 jobs here in the united states. let me repeat that, one out of every 24 jobs in the united states is related to exporting to mexico. state, jobs in your home california, depend on this relationship with mexico. my home state of arizona is the nation's fifth-largest exporter to mexico third over 111,000 arizona jobs rely directly or indirectly on the commercial

relationship we enjoy with mexico. unfortunately, border ports of entry face significant challenges keeping up with the growth in a two-way trade and represent a loss of 7.2 billion dollars a year. as chairman of the western habits -- hemisphere subcommittee, i have made facilitation a priority. as -- mexico has a growing middle class. somehow projected that the mexican economy will be a fifth-largest in the world by 2050. reforms passed last year will open a mexico's economy even , creating a more prosperous mexico. willms recently passed open the sector to foreign investors that will allow mexico to realize its production potential, helping to make north america energy self-sufficient. as chairman of the subcommittee,

i push the administration to finally send out the agreement for ratification. this resulted in 1.5 million acres of u.s. outer continental shelf thing open for explanation production and opened up resources in the western gap that has been off-limits to both u.s. and mexico heard we are now on a real path to energy security and independence. despite promising news on the economic front, security and mexico continues to affect both our countries. our security partnership has been successful in undermining transnational criminal organizations and in helping mexico to reform its justice sector and build capacity for municipal and federal police forces. i continue to be concerned with ahe progress during the pen nieto strategy. i agree that there is much more to mexico then the security situation. when i see that there is nearly

ida0 million in the mer pipeline, i see there is more to be done to get our mexican partners to reprioritize security. if mexico contributed -- continues to contribute $10 each dollar that the us contributes, it is a good indication of mexican resolve. there is still much progress to be had. i'm eager to hear from ambassador brownsville on steps he's taking to further cultivate this important security hobanrship, and from ms. .im the security situation and the rule of law will have real and direct impact on the u.s. homeland at will -- and will enhance our our already impressive bilateral commercial relationship. thank you so much for convening what promises to be a valuable hearing on one of our most important and productive global partnerships. the ranking to

member of the subcommittee on the western hemisphere for two minutes. >> thank you to our witnesses who have been here today. promising andmost positive relationships in our hemisphere. i thank my friend and colleague almon.an sa -- as well as nearly 2000 mile border. the u.s. is mexico's largest trading partner and largest foreign investor. exit close the third largest u.s. trading partner. in terms of security, both the u.s. and mexico have accepted a shared responsibility as part of a initiative. commerce is appropriate more than $2 billion to that administer -- to that initiative.

for its part, mexico has invested nearly $10 for every by thellar committed u.s.. nonetheless, mexico remains a major producer and a supplier to the u.s. of heroin, meth and marijuana, and is a major transit country for more than 95% of the cocaine sold in the united states. since 2006, more than 70,000 deaths have resulted from drug related crime and violence in mexico. nearly a year and a half has passed since mexico's president came into office in december 2012. tonce that time, president nie has ushered in ambitious reforms that will prove significant to the success with a profound impact on u.s. economic relations and energy security. the skepticism and concerns regarding his move to centralize security policy has now moderated and is deflected in the recent successful capture of

guzman. iin whos hope mexico's recent announcement to dedicate security resources to those regions will signify an ongoing effort to continue combating drug-related criminal threats and strengthening local police forces. i look forward to hearing about our involvement in mexico's southern border security efforts . in terms of human rights, how we can work with mexico to further protect journalism, human rights advocates and central american migrants. i look forward to hearing from our panelists on the assessment of what we can expect from secretary kerry's upcoming visit to mexico and how we can improve our efforts moving forward. thank you. morning, we are pleased to be joined by representatives of the department of state and the u.s. agency for international development.

our madameto see assistant secretary. is good to see again. assistantoming secretary of state for the bureau of western hemisphere she formerly was the acting assistant secretary for western hemisphere affairs and formerly served as director of mexican affairs. ambassadore brownfield with us. he is assistant secretary for international narcotics and law enforcement affairs. he was the u.s. ambassador to colombia from 2070 2010. -- from 2007-2010. hoban has 25 years of development experience in latin america. is a senior deputy

id instrator for the u.s. the caribbean. she served as the director for haiti task team. whole prepared statement will be made part of the record. at this point, we will begin with ms. jacobsen and ask all the witnesses if you could summarize your remarks and we will go to questions. ms. jacobsen. >> thank you, mr. chairman. i want to thank you for the opportunity to appear here today to testify on u.s.-mexico relations. i am gratified because i think this is the largest number of members we have had at a hearing in this committee on latin america. i also really want to thank the western some -- western

hemisphere subcommittee for their consistent and bipartisan support of the u.s.-mexican relationship. our relationship is -- with mexico is positive and successful and really is congress's support as a cornerstone of that success. i'm going to speak briefly on security and the rule of law because my colleagues will cover that in more detail. i want to first provide a broader context for our relationship that is increasingly global and even more important to the lives and pocketbooks of americans. high-level engagement with mexico underscores the importance of the relationship. president obama has visited mexico five times since taking office, most recently in february. vice president biden has gone three times to mexico. breadthreflecting the of the relationship, we have had secretaries johnson, hegel, fox, lou, phil sack and ambassador

visit.all as you all said, my boss, secretary kerry, travels to mexico tomorrow. the united states and mexico have integrated our economies in ways we could not foresee when nafta when into force 20 years ago, creating new jobs and boosting opportunities for citizens of both countries and increasing our competitiveness. the u.s. and mexican manufacturing economies built products together for the north american and global markets. the united states welcomes mexico's focus on economic policy reforms. the reforms that are being implement it should not only help mexico bill demong productive economy and raise living standards, but also create opportunities for mexican firms to improve north american competitiveness. the administration is capitalizing on president niet

o's strong push. the dialogue launched but vice president biden last year is moving forward in three areas, competitive message connectivity, economic growth, and regional and global leadership. these working in many of areas with canada and mexico based on our leaders commitments at the north american leaders summit in march. people to people ties between our two countries are vast. 10% of all americans, more than 33 million, are of mexican heritage. the mexican-american community is a vital part of our culture, our politics and our values. we're focused on tapping the great potential that our people give us. meetings,lped five bringing together governments, academics and civil society members to promote opportunity, job creation and development of a 21st century workforce. that form complements the president's one house -- 100,000

--ong americas initiative to the president and his cabinet continue to engage with mexican leaders on the administration's vision for comprehensive immigration reform that respects our tradition as a nation of immigrants as well as a nation of laws. affect mexico more than any other country, but mexican officials recognize this is a domestic issue for the u.s. to debate and decide. at the same time, our borders more secure than ever. we partner with mexico to maintain that secure border which facilitates the legal transit of goods and people. mexico is beginning to implement a strategy to better secure its own border with belize and guatemala to stem illicit flows of drugs, weapons and people. we maintain close partnership with the mexican government on security and rule of law issues. i will let my colleagues described as programs, but what to highlight two emblematic development.

this arrest was a clear indication that no individual or criminal network is a mood -- is immune from the rule of law. in the development was a public announcement just last week of a comprehensive mexican government plan to address security on the estate bordering texas. there is no easy solution or shortcut to reducing violence in the short term, but long-term will -- long-term loss build capacity. we know that when mexicans benefit from more effective law enforcement and judicial institutions, in areas near or far from our border, we benefit as well. mexico, andisit to enjoyed frank conversations and human rights, security and improving the lives of our citizens. with us tos to work

achieve the massive potential of our citizens and our economy. thank you for your time today and i look forward to answering your questions. >> thank you, assistant secretary. ambassador? thanking you for not throwing attention during your introduction to my three years as u.s. ambassador to venezuela, a. and a. any performance which richly merits not being remembered for centuries and centuries to come. i referenced it, but i didn't give a time frame. >> thank you for the opportunity to appear before you today to discuss one of our most important relationships in the entire world. assistant secretary jacobsen has just described larger strategic issues, and i will report on the security relationship. nietothe arrival of the

administration, both governments took the opportunity to review our security cooperation. we had much to review. since 2008, we have delivered $1.2 billion to support that cooperation and the government of mexico has delivered many times that amount. our support provided training and equipment to 8500 justice and 20 2000ials police. civic education programs reached more than 700,000 mexican students and secure federal 5 ton systems grew from of 112 contribution million in border detection equipment has resulted in almost 3.8 alien dollars in seized illicit goods.

our joint review started from a very strong base. early last year, the two governments agreed to maintain four pillars to guide our security cooperation. disrupting organized crime, institution building, creating a modern order, and building strong communities. the government of mexico released its own 10 point national security strategy last august, giving greater priority to crime prevention, rule of law and community development. we agreed with these priorities. for our part, we prioritize andning over equipment state-level engagement as well .s federal level engagement the mexican government agreed with these u.s. priorities. as january of this year, our two governments have approved 78 new projects valued at more than $430 million.

the mexican government focus these projects on just this -- on justice sector reform, mexico's southern border and state-level law enforcement. we will work with the mexican attorney general's office to train prosecutors in the new accusatory justice system and empower law enforcers to fight financial crime. we will provide communications equipment and training for customs, immigration, border and the critics officials along mexico's southern border, through which most illicit product and migrants pass on the way to the united states. we will increase training and support for state police academies to allow them to through stateeach police throughout mexico. mr. chairman, i do not need to explain to this committee importance of this security relationship. i am sometimes asked when we will see concrete results on the ground from this investment. .he question is easily answered

first, i note our lesson from columbia. it takes decades to create security threats and it takes time to resolve them. but second, there are visible results on the ground. cahporests of joaquin el guzman was the most important operation since the colombian takedown of public escobar in 1993. in the past three years the homicide rate in the city of rs, 300 feet across the river from el paso has dropped as much as 83%. u.s. consumption of cocaine and of themetamines, most transshipped through mexico, has dropped nearly 50% since 2007. u.s. border officials report that at some crossing, mexican nationals now constitute a minority of those detained for illegal entry. , this of the committee

congress was bold and ambitious when it decided in 2008 to initiative.merida we are not at the goal line yet, but we have crossed the 50. thank you, and i look forward to your questions and your guidance. >> thank you. >> chairman royce, ranking number angle and members of the committee. thank you for the opportunity to discuss u.s. aid contribution to the merida initiative with you today. mr. chairman, as underscored in our new mission statement, u.s. is working with our partners in latin america and the caribbean and the regions impressive progress has enabled said to provide strict come -- to provide countries

capacities to strengthen their people. there are three goals, to improve the effectiveness of the justice system, strike the capacities of communities to reduce crime and violence, and promote protection of human rights. to achieve these goals, we operate in a genuine partnership with our mexican counterparts. these goals are matter of national security for the united states as well as an economic and political imperative. six years ago, mexico began a transition from the written inquisitorial criminal justice system to the more transparent, oral, adversarial system. u.s. a support for that transition at the national level and in 12 of the 32 mexican states ranges from helping to develop legislation to trading judges, prosecutors, public defenders, and investigative police. we are also helping the mexican government to create and

strengthen institutions essential to the reform, such as building the capacity of internal training units of the victims assistance centers, and pretrial servicing its. to prepare the next generation of lawyers and judges, we are assisting mexico's bar associations promoting professional standards and law schools include similar form and teacher training. the transition to a new criminal justice system is already producing positive results. evaluations of this dates that have advanced reforms cut a significant decrease in acquittal rates, a marked decrease in the length of pretrial detentions, longer sentences assigned for serious logs and better resistance -- better assistance for victims. to support the crime reduction efforts, we are piloting innovative preventive approaches in three of the border cities most affected by violence and criminal activity. as, monterey and

tijuana, we are developing new laws for safer urban spaces, providing life and job skills , increasingyouth's educational opportunities, and empowering communities to address the root causes of crime and violence. one of the keys to success of .ur merida activities to raise additional resources and ensure job-training provides the skills employers need, we have partnered with companies like cisco, intel, prudential to name a few, -- we are also helping to spur economic activity in communities across mexico by opening up affordable financing via the development credit authority. in 2013 partnership between u.s. aid, the mexican financial

lfin unleashedf significant capital. to truly ensure the sustainability of our efforts, we are increasingly supporting local organizations to reduce crime and violence, such as the business society. to date, they have supported over 17,000 at risk mexican youths. our efforts to advance prevention by providing viable alternatives to mexican youth are already bearing fruit. one of our employability programs engaged 8900 at risk youth in education activities and approximately 70% of our participants have reenrolled in school were gone on to find gainful employment. through the merida initiative, it we're helping the mexican government to protect those who

expose crime and corruption. we're applying lessons learned in colombia to enhance similar mechanisms in mexico. we also trained journalists and human rights professionals on the practices, tools and technologies they need to protect themselves and their work. mr. chairman, we are encouraged by many of the steps that mexico has taken to reduce crime and violence. we also recognize that defeating the powerful cartels and the violence that this bond will take time. we are also encouraged by the progress we've seen thus far through our partnership with the mexican government, private sector and civil society. your success will make both our country safer and more prosperous. thank you, and i look forward to your questions. >> thank you. that me ask you a question of the ambassador. the administration

, the pena administration's .eview on security issues they took a step back, took a .ook at a new approach cooperationsess the between the u.s. and mexico on that and the other aspect of that is i understand state department works with the california attorney general's office to help provide oral advocacy training to the prosecutors in mexico. office county sheriff's hosts a study tour for mexico .ity police i was can't ask him state level helpnges help preclude -- improve cross border relationships at the state level and in turn help improve the capacity of mexico on transnational criminal investigations.

i also wondered about the effectiveness of these programs and thought you might have some comment on that. >> thank you, mr. chairman. i just might. may i start with your first question. that is the state of cooperation between the united states and mexican governments. you are correct, as always, that the start of this now not so new government of resident -- of nieto from 2012. there was a. where both governments logically and understandably said let us review what is the nature of the cooperation that we have today? i would suggest to you that never in the history of mankind to officernment come a new administration saying we will continue each and every program and policy of our predecessor.

we have reached an agreement on how we will make these decisions in the future. we have set up our own team based out of our embassy in mexico city, and the government of mexico has established their representatives in that department of governance, like the presidents ministry and their foreign ministry. you're making decisions as i mentioned in my statement. we have agreement on 78 new for $30 and nearly

million on projects i will proceed. we are moving ahead at a smart pace in terms of programs and projects. >> wannabes would be the prosecutor -- one of these would thehe prosecutorial -- i attorney general's office in california? >> if you allow me to pander ever so briefly, since you have opened that door, i would mention as well, probably, that we have also partnered with a number of other state and local institutions in the united for mexicomerica programs, including the chicago police department, harris county , houston police department, los angeles sheriff's department, portland police department, washington , ele justice commission paso sheriff's department, albuquerque police department, new mexico state police, california corrections department, colorado

corrections, maryland corrections, new mexico corrections, and a group called the conference of western inorneys general which loops about two thirds two thirds of the attorneys general of the united states of america, including california. capacity this focus on . you deem this to be effective? >> in each area focused on their area of expertise. >> i want to go to assistant secretary jacobson with a question about the shift in strategy for 75 years. a state owned monopoly that is changing. i was going to ask you about the energy sector there and the changes you might expect to follow the implementation of those major reforms that are underway. if you thought we would see significant foreign investment as well as u.s.

the energyin industry as a result of the reforms. >> thank you, mr. chairman. one of the things that has been so exciting about the reforms and the energy reform, obviously has garnered the most attention, are opportunities for partnership and investment. will remain aex entity.ned secondary legislation is not yet complete. it is not entirely clear how things will play out, but what we hear u.s. companies of all types, energy firms, and firms that would support energy contract, etc., is that there are very very interested in the market, and they're waiting for the reforms to be complete, but

they are obviously very excited aboutthis very positive partnering with mexican companies and pemex itself am and what possibilities there might be for them to be involved. there are also obviously outside of the oil industry partnerships in renewable energy, the forms of energy with the us companies for quite a while. industry, there are possibilities that didn't exist before. >> thank you. i will go now to mr. eliot engel of new york. >> thank you very much, mr. chairman. an witnesses know, i was early and strong supporter of the merida initiative. since 2008, congress has appropriate over $2 billion to mexico throughout initiative. military hardware is delivered and a focused turns to institution building and justice president's budget

request has decreased for merida funding. i would like to ask the witnesses to give a sense of what you think merida initiative assistance should look like both in terms of the amounts and types of funding over the next 5-10 years. i went to ensure that the next -- that mexico receives the funding it receives in this budget atmosphere. why don't we start with you, ms. jacobsen? >> thank you, mr. angle. obviously, as you've seen from our request, the figures have gone down over the last couple of years. this was, to some extent, our expectation, along with the mexicans'that those numbers will go down. mexicans were able to afford a great deal on their own. number two, equipment is more expensive than training, which is the area that we are most in now. i can't recall exactly at this moment a precise total figure that we are talking about,

whether we are somewhere between $100 million and $200 million of assistance at this point. i expect that figure to be in the neighborhood trending downward, but slowly over the next two years, there is still an enormous amount to do, especially as ambassador brown has outlined. know, so much of the law enforcement and justice effort are at the state level, not just at the federal level to fight these kinds of crimes. nasa think it is critically out,tant, as beth pointed the real focus has to be on the communities themselves and the justice sector. this is an administration that came in very focused on completing that judicial reform. that is going to make a huge difference on the human rights

situation and on convicting weple and making sure that are only focused on the most important cases. .hings are more transparent victims rights are respected. i think that is really where a lot of the focus needs to be maintained in years ahead. else?body ambassador? >> limited just to you, the president suggest for fy 2015 for international narcotics control, the law enforcement was $18 million. i, of course support the president's request very and i do know that is down from nearly $148 million the year before. there are two reasons for this the program will start high and then the congress will hold us to a standard to bring it down to a sustainable level in

the richness and fullness of time. second, as i suggested in my opening statement, we were working through a. of adjustment with the new government. during that time, we were nuts bending down at the rate we had in previous years. it would be my hope, congressman, that our request in the year ahead would be at a somewhat higher level. hogan. tap theve just begun to enormous potential of the private sector to invest in some of these programs. i think it is a win-win situation. by investing in workforce development they're getting -- you getting better employees and --re getting the opportunity i think there's much more we can do. we know it is a great amount of is notty and banks

reaching small and medium-sized this is who we are poised to do more that kind of work and unleash the potential for the private sector to solve these problems going forward. >> as i mentioned in my opening statement, i believe that u.s. firearms fuel drug violence in cisco. since 2009, was fruitful enforcement of the existing doesn't exist in your stand. this was enacted in 1960 attention -- gun control act. frankly, i have been frustrated for notdministration enforcing this or enacting this. this is legislation that is already on the books. it was fulfilled under the administrations of george h.w. bush and president clinton. it was stopped by president george w. bush and has not resumed under president obama.

andas been very frustrated i know we are having some discussions and hopefully we are moving things along in the right direction. tome, is very frustrating have laws on the books that we know if utilized would stop the violence. if not stop it, but would help curtail it and these arms that illegally go to mexico are fueling it. we are just sitting there and watching it happen when we have laws on the books that in my opinion could prevent it very have usedico, we merida initiative assistance to install spanish-language each race to help trace recovered firearms. but me ask how ambassador brown feels about it. how effective has spanish-language retreats been? how has your corporation with their mexican counterparts in spanish each race. based on information we have obtained, you know where most

firearms recovered in mexico come from and >> thank you, congressman. each race is in fact a very important part of our security and law-enforcement cooperation with mexico and the mexican government under the marriott a initiative. i would describe our experience raceeach race -- with each trace. each race course of the year 2013. it is now rising once again. , theribute that to first

same adjustment of one administration to another administration, and second, a realization by the new team that this is in fact a valuable tool. i am optimistic about it. i think this is a very good investment. it is not just an investment of the united states and mess -- and mexico, we are also having excellent success with each -trace in the caribbean. >> i'm wondering, ambassador, if you could answer the last question about the information race.ve obtained from e-t do you know where firearms recovered in mexico come from? >> we know in terms of those which have been processed ce. i can't give

you figures here now, but i would be happy to give them to you. >> thank you, mr. chairman. >> i thought you're going to go first, mr. chairman. first and foremost, let us be very grateful that we have such a wonderful people that lived to .ur south i'm a californian. we are very proud of our heritage that we share with our brothers and sisters to the south. america could have people as our neighbors that we don't like. , the peoples much of mexico are wonderful. i spent minute much time with them as a young person. as i got older as well. being a surfer i spent a lot of time with mexican surfers down in baja.

not with that, that we should be grateful as a country for having such wonderful neighbors as we have. having wonderful neighbors and having good friends does not mean that there aren't problems. you have to work at those problems to make sure you maintain a good relationship. i'm very happy to hear testimony that indicates that that relationship and that cooperation actually is on the upswing. i hope to be as supportive as a could of that effort. i would like to talk about something that you have touched you, what is drug use in mexico like? problem with internal drug use in mexico? >> i don't see anyone else grabbing for the microphone,

congressman. i will take a crack at that. may i offer one lesson of history? as a is no such thing country that serves solely as a transit country in the drug trafficking pipeline. the reason is very simple. over the last 30 or 40 years, the trafficking organizations .ay their network in product they did not pay $50,000 to a corrupted customs official, they provide a half kilo of cocaine or heroin and that product and must be marketed locally, and in nationy it transit becomes a consumer nation. mexico is, in fact, confronting its own drug problem and crisis. it involves methamphetamine, cocaine, and heroin.

underpart of our program the merida initiative with the government of mexico is drug demand reduction in terms of supporting an programs in schools and among youth, treatment and real we abilities and centers, particularly in cities that are vulnerable to social unrest. >> for me ask you this, do they imprison drug users in mexico? >> i will have to double check in terms of the specific state of federal mexican law. there are, of course, 32 states in mexico, as in the united states, each state has its own legal code. what i do not know at this point mere possession or consumption is a criminal offense. >> let us note that our drug war has been a total failure in the

united states. we have massive drug use after how many years, and that drug use in the united states is one of the things that has had a ,egative impact on our neighbor who we like. there's a tendency among too many americans to blame mexico for our problem of consumption, when actually it is the other way around. i have talked with former --sident the cente fox fox. people who use drugs should be treated as people in your help rather than people who should be imprisoned. >> i agree with you,

congressman, that drugs and everywhere else in the world is a public health issue. it is not just a criminal justice issue. >> limit to say this. the best thing we could do for mexico would be to lower the price of drugs so the cartels would not have so much income to dynamic.power >> iat correct the echo would want to be very careful not to support a policy or a strategy whose effect would be to increase the number of users and consumers of dangerous products. my response is, the devil is in the details. we have to make sure that as we proceed when a producing a worse outcome. >> and a standard argument, but iwould just suggest that

haven't seen a lot of evidence that indicates the legalization of drugs and treating it as a personal problem that somebody has, i haven't seen where that would increase the use of drugs in our society or in mexico. i have come to the conclusion that people can get a hold of no matterur society what. there's nothing stopping them. legalizing it will mean more people would be using it, it is just that there -- the drug cartels would be cut totally out of the equation. with that, thank you very much. >> river not to mr. gregory. chairman.ou, mr. i want to thank all three of our diplomats sitting at the table who, for the representation of our country and your commitment

to the western hemisphere, you truly are examples of fine diplomats that make the united -- that serve the united states in an important capacity. let me start with assistant secretary jacobson. we have had a long relationship with mexico. we started with nafta and moved on. this is the economics of the relationship between united states and mexico. i'm sure you've seen this relationship evolved. i was wondering if you would give us some indication on how to see it evolving and how to characterize it now. >> thank you, congressman. i think one of the things that is so remarkable is that if you look at the growth in the 20 is, it is a lot of statistics. we did hear, i think it was in chairman rice and chairman

that thismarks, tripling and quadrupling in trade has generated in the united states. in other thing we have seen the growth of trade since nafta and since the growth in our economies connection and conductivity as we call it in the north american leaders is -- integrated. if you look at the one that is always used his automobile production. cars are not really american in canada, the united states and mexico. it is true also any aircraft industries. it is increasingly true in many manufacturing sectors. i think there are a lot of ways in which we have seen that north america, with all of its resources, whether they're natural or human, can be a flat form -- a platform for enormous

economic competitiveness, and that working together is a witty we can get there is one of the reasons we have spent so much of our time in this administration focusing on three areas that are linked to the importance of that economic competitiveness. education, especially for the , energy, which economic to that independence. >> i know that upon his in abjuration, president pena nieto has large been able to keep previous programs. how do you think these reforms affect u.s. investments in mexico?

think is the things i so critical, these are reforms that have been urged by economists for fully 20 years. they are very much the structural reforms that many people said were critically necessary for mexico's economy to prosper along with the free trade agreements. economists have always told us that free-trade agreements alone don't bring about economic prosperity. they require structural changes in an economy like mexico. these reforms, in many ways, or some forms of changes, where needed to make mexico more competitive, to improve its economy. they really do bode very well for the mexican economy, but they also bode well in terms of their openness for investment and for greater traits, even greater than we've seen in the

last 20 years. using mexico as part of tpp and ,s part of the pacific alliance the nations of latin america, chile, peru, colombia, mexico, integrating and working to promote greater openness in their economies. really trying to encourage greater investment from overseas from all over the world, whether it is united states or elsewhere. i think everton it is a really much expanded, even then they have been in the last couple of years. >> amigo to ambassador brownfield for a quick. i know when you're in colombia, can you tell us real quickly, what has colombia's role been in providing training to mexican security forces and what specific areas would be collect -- would be helpful for the club the government to further train worse is mexican security forces? the, government

has provided support and exported police and law enforcement capability broadly throughout the region, most heavily due central america, less heavily in the caribbean. in mexico, there has been a great deal of communication and . >> the colombian government has provided helicopter pilot training, maintenance and support. mechanics training if you will for the component of mexican law enforcement. that said the amount of training engagement between mexico and colombia is less than you find central and the cane. >> i thank the witnesses for being here today.

arly the ambassador, and the secretary. i appreciate your hard work. i chair the i.p.g. and i must say in mexico city six months ago we had a very productive meeting with the mexican particularly -- i've been very optimistic about this new administration, with respect the jobs they're taking on interview. all three parties greened agreed. which, you know, at this point it's hard to agree on anything. but that ball three companies coming together saying this needs to be done. i think it's really remarkable. mexico has a unique opportunity to open up this resources for

cha el. and then working with the united states tells the true. i just returned from the middle east from saudi arabia. we have a great dependence with energy. i think it's a great way where we can work on interview and independent. the secretary will be has passed on these reform but it's still awaiting gratification for lack of a better world by mexico congress which would take loss. can you give us an update on that? >> ratification took place and now the implementing secondary legislation. an this is neeble that will be done in the june time frame. yeah. >> do we feel optimistic that that will get done.

done? >> there are encourages. likely and some depends as is always the right thing to know that you a great deal or the sports. in the united states. it's very pornte to have production sheering. i once -- and that would be the key to. out here i -- are you saying one would lean more in the production. >> i have to know where she might stand. i don't want to misspeak so i'll check that to be sure. i think it's good for us, you know, to sit back and watch. .hat african's to when i -- i also want to imply the new game of thrones.

and intense after going threat carpet informations and not too ong until you must for the administration. take. -- i talked to the ambassador about this scrap chur. he told me that he was opened to the idea but that expected. not been made by the administration. could you give me the welsh has a walked. other than the extra additional -- success.dz oh, she turned over to me cram. for which i am of course,

eternally grateful. members of the committee, i believe this is known to everyone on this committee and i presume to every citizen of the united states and of mexico. there are, in fact, indictments against mr. joaquin guzman in u.s. -- in the united states of america for federal charges related to drug trafficking offenses. there are also obviously charges and indictments pending against them in the mexican level system. i believe that ambassador medina is why what he has said to you. we have two little questions that would express. it will be determined by the mexican judicial system in terms of whether they will try in there orly they support an extradition of him in the

united states. at the owned of the day that decision will play out in its own time. >> i thank you for that answer. let's see how much time has expired. thank you, mr. -- today kerry is going to medco. that's not just the middle east that we have that -- what can we exrpt this tripe. they're going to be on the analysis. anything that you can give us a head starts on. >> sure. i don't want to break too much the news ahead of his trip. at least going to focus -- the trip is relatively brief but it ill three areas that i think are among those that i've talked about today. he will meet with his continuer

part nedelook at it. > the education secretary. from the national science down nation to talk about our buy lat rail four arm. so there will be a in the launches of our action play. this has this has been a real key part of our relationship why sign i done that's the national science foundation is involved. he's also going to defend in which they are going to talk about it. so a lot of this will focus on the education agenda. >> the security of the southern

border. the border went to guatemala. that's becoming a swear dangerous point. -- what i was canned to >> i'm going turn it over to ambassador winfield. one of the things that -- that we've decided it is also that deputy house and omicide security at virer. am bats door brown feels that the support is effortless. >> very briefly we have all right. here was also by it is a

perfect agent. it is already a -- an area where we have agreed on several specific property texts that being good. that would support the ability of the mexican government to look. border dougs, custom, and for a long time that hises son did it. under loik the u.s. mexico border where we have a right to .peak and to speak public obviously is not something on hich we have an automatic to an hour. fives the owner border of mexico is about and therefore it is a much easier challenge to manage. and second the overwhelming stewart of the let's

hi sdzes that summer border appreciate. we are committed to work with them. pala, -- i just gat was speaking in shorthand for which i should apologize. but your even more correct because being a farless popular country. doesn't needily have the resources to throw at the bored issues as does guatemala. > thank you very much. going ow go to matt, i'm to direct my first question. we rook for ways to improve

enough to shorten thoys wait times i'm cleveland with some of the ingovernment. did she border to a scene. here's the loss of billions of dollars. -- this is the second appreciate run. and the power to a.c. particularly given the opportunity on the mex quayo can side. also, hannah went to commercial sign. these r diplomatic efforts in particularly the mir yol materials between u.s. along with the business jest

request corridors. there have been only around 5 am jarks. not nearly. have you. >> thank you very much,. i know that we have really been pretty intense conversations that our mexican counter parts both side really wanted to see an freement with that. some process that is being made there. let me get the specifics on whether. not only do you and your state because that's what we were rying to do a pilot. figure out whether this model can work it. would be so much easier. this is is i would like to drow

in detail on where we are. we'll continue to try and work for. on the issue of the border violence and the efforts to reduce border violence. clearly, we work but when we are working -- and the conversations that we've had with our mexican counter part. >> sirche the new government is issued as night. i think she has really improve our communication and have no way eerpt. e continue to su so row. especially as we get information and i'm telling you continue to have >> i want to congratulate you and your colleagues in mexico

for what you acleaved in partship. despite some setbacks and reorganization following the election doesn't faye me. >> however there are accesses it remains as a substantial post ganl as you know. and if we could expect to see more steady progress. the state of tapapolis. it is gears eeled. and there have been several. i'm sure you'll find and. of the they said this is mexico. while they were improving the security oveb.

areas like this. and i just don't think we can do that. thank congressman. is t on the pop with-respect . which have not been cleared off the letter. and as tt ballry risses the pipeline for at least in fast. the equal will follow them. herely as much adds $8 thoumple 2013 simming is the money. when that is ve mpleted about 310 fends read

we have in that period. iran we have reached agreement n 438 million dollars. 78 new programs. i would expect that to bing a fee. n we do have no one on this side of the capital is responsele for them. but that is money that cannot the signal is i should have never put down theer. is not going to be a long staming issue that would you have to left here. we go down to mr.vargas tell us

to question us answer. united one an ack of states marine. the border efficiencys that we just spoke of. however ined a ver 2e7b9ly would read and have weaponing on them. we're hearing their quite as legal in mexico. he crossed the bored. he had three womens on him. that's through. he certainly got in our company very onable. unfortunately rblings he's very accident. everyone understands this he's not d and in any way con

cluiest. post traumatic stress moment. i was hoping that you could comment on that big one. i'm wrying to regular his leg. hit him and do everything he can. i don't know i i'd like for you to comment. as you know and obviously she aware and let's mel will continue to do so. so far they've been available to look at the visit by one wife. we will continue to do all that i made him older than he is. i apologize.

to make sure that his treatment is adequate and appropriate, to ake sure he gets his here. we'll will b sleep by then. but we want to get this involved as much as possible person. that happens wait to often. the other issue is border infra see. and i moving forward remind youless than >> yes, think these are used to get all the attention. but they're right. and there are a rot of things going on. in the directive.

they design has been completed bound for us. and i think that will hopefully be able to get underway pretty quickly. obviously the much bigger has been the tree phase. thank you very much b. and i don't think i'll. lastly the north american development bank. the nat bank has done a quite a lot of which hosts that you would want to take that that again. there's a strong commitment -- to the naanee things. know sid there >> thank you so much plarm

fargers. >>. ary i and i had to think it's incredibly important when he was do so. >> just to emphasize we've had a great relationship with mexico alos angeles the coubs. . e you in but there are er want that too. this poor marine he's ined a gun y drug trafficker, a trafficker. and forbling fortunately er ame going to

cry right now. and i re questioning stepped out right before we spo. so in california with the am and there is a strong vilt. what matrix? what battery are you using to that kind of a stig. i think that basically the data use wude would three or four

minutes. there are fewer people coming obviously the -- did you have indook where they're responsible. sergeant has done everything .he cal in the give former knapp.

you're aware of the esorse a a >> yes, sir. we have a safe border. >> i think that we made huge strides in securing our visit along the way. you'd have not never is texas d.m.s. hard hard not to get lost. i heard you miss those days two months ago when i had the pleasure and the hob two and the company

half months ago whereby texas d.p.s. will in fact be a partner. they will be on this list as we work our way into program and scatty programs. specifically related to their areas of expert. when i was board ever. if i remember the number right. i think we have 200 people ike.

trying to secure the border down south with guatemala but are we spending a commensurate amount on the north border. government. has got me d what enter we, of course, are the national died. o so second i will say that i had the same conversation with mr. mccontrol that you have had and that i. and it is that the situation on the border is, in fact, getting beber. iser -- our counting across our seven borders. now that ought to scare what we

say. so i would simply say to the rest of the chirmthre. rewe need to shikeshaur for your service. . .hank you and you really suched my paint. i thank you for your seat extraordinarily important. -- i ust think it's talked them out of -- with you and mr. ambassador. you talk a bit about. and many of the questions that the place ck senos is taking history. it's a you minder step can coont and make brothe.

pretty good interest to me. i think my sister is most importantly. they have been on the front lines of this doc. the department there's been an .- 1.4 ouffer did if it's erp recent flows there's a fall out. 17 and 12 se 17th reported using lem trick marks. there eight. and he's the one that provide law enforcement officials to wor for not re the .

i know you wur talk about fe. maybe it's not such a good idea. 3-1 for a bag of. .nd if we were watching i can't as for the world's leading and most of us subt doesn't out officials. if the. and i because of the "new york times" today. inger if you caner is

-- i seen said with ke do? it would be great. agrole. 1.2 greece aggress. pal nies i you say than another guy. it is confront is a sheriff wild one has gone to the open. i am four years that want the number of atestimonies and abunalers offer. has d just -- the a is increased money and nearly

delays 5-. region of the country where it never was before. and we are -- i would also suggest set up to where a out that he found through the central america, mexico or the carry bean. when is a periodic set for your probably. e will have to address it look - met but the i have read to it is

>> they may sound like it's a lot. 7 we before you aufing a lot kill. . tons off he walk mr. bass which would do that, i would be grateful. thank you. >> thank you, mr. kennedy. thank you all for being here. i appreciate you hearing the halves and but that's in a relationship sometimes. i appreciate the intense being brought this. i just want to ask the issues they talk about that.

and i went for that resourt. and the plane pushing me was introducing me to that -- sh, 15,. -- s the ex-of of that ho i didn't realize how sad 14 and 15year-olds were crying as quy imas they have. if a reel, real issues i guess we'll meet up. i'm going to switch subjects now off of that. mexico was projected to go up 3 sprs. there's going to be much better grope this year. how do you think though reforms

are going to help mexico and their our government. an he can keep it fairly short. > i'll troo to be really questions to beg. but i do think i do things that he reforms up the >> it's not clear to me that surpts.lt of that and many, i think they probably get some increase . vestment and i think >> thank you. and gronlfy lots. i actually have flown on the

.order of the threat that a. people come in when you're talk act the ex-ly sent pleasht in the worth. there's two judges that depit across the united states. as we talked about everybody . ys they want to secure what is your secure border under what this looked like. jerky, i can tell everyone that of course, what we're doing to edition. er state and -- local and federal gaufment managing the northern

side. he could nut a good rid. it's a or unthat 45s the. .hey allows you or you can. 15-mile backlog, and two weekedlies and i had mentioned over the last four years. [applause] i reckon afghanistan would bring back. >> however you have put your fingerman, crsm have a matter of sbirnlugs. . a is simplyo

that are in fact, going to be down down and removed from ideo to the other. but along the u.s. mexico border but in other parts a . ll and there's an i.s.o. pilot. in operations oversays and the water but i also know that i'm off. i think it's very important, hens our situation weights. the. .oise coach, we ral i could imagine to help the girls oy. thank you ule for your generous time in being here. mr. chimman, i will gry back to

the beginning of live. >> my grandmother is from co what hilla -- san antonio as you know other the years has i was y striment a $240s or when om they shout for that.

first of all, on the mexican relationship, having being rent ooh at the ert. or. then the deputy regular asitsment. and we we did know that it was gone to dch. explicitly. ry but they're feeling that they didn't believe they're going to need assistance from the u.s. government. they were also until an o.c.d. company and they needed our ex-peer tease more than they needed huge amounts of resources for equipment.

we hope they will not trail off specifically from here. >> that is a huge draw. >> but we've also gotten past -- i cannot deny that there has been a very large drop. and there has been over the years a dropping commitment, i believe to foreign aid and engagement of the world which i don't think it's good for our country. there is huge amount of ressure is on the.

i just want us to be clear about what's going on. >> during this period when there's been so much pressure on the bucket we also have size seen a period of time where growth rates in latin america . pecially it just wasn't if necessary in the pen. or because they -- we didn't feel that we needed the same amount in the same area. it is not to say that they are not still needs. but this is an area in in which we hat we're doing what should be doing. it has been a large reduction. >> unfortunately, that has been the relationship one of the

first reasons to get cut. and i don't think that's in the best interest of the united states. the congress is debating the they sposk parrer in i wonder what the environmental laiders are out. . in the country at stake. so what is 1/2a done news. >> well, maybe one of the important things is that it bring out of the meam free trade agreement where things like labor and environment zillion is soft letter. it's more recent free trade agreements. have had labor as part of the

free trade agreement. hat t. the higher. >> i know i'm out of time. i'll follow up with y'all. thank you so much, mr.casstrose. >> few for. they will recognize the .ppropriate that -- only faye blice. who would provide us sin sight until the blood trade. three months ago the mexican overnment. warrior drug 4ths brought up the issue of treaks dieting him. w50e we've so we don't have more of these cases.

a thank you to everyone who has brought it up. but for u.s. citizens. in 12:. who also like -- this sad case. nd ended up in a mexican but the family was at first quiet. there is the ay new smell of an cue from so you they will marine ray too. . the embassy in mexico that's his hero.

. i'd like to put that for the record. ir joined -- and the mom of andrew lives in her district. 25 rio gives va dwreerleds. . and we're very oird about this case. it took a lot of pressure and a lot of u.s. theelt get these cases resolved. nd thoycl. -- secondly secretary jacobson thank you for rectifying for the record a statement had that ad been made in the city, it's

think enls sanction, i of other yaste areas interest. .n we had seens ity for clarifying that is not the case. 1 mr.they are or or not, i think the it's pretty. his third z in onth in chorn. we hope that she could ball that. did not want to take too much time and that could i know about mexico but today's cuban

independence day. we wish that cuba were truly independent. i would like for that to be truly the case. and so if you could comment, secretary jacobson on andrew . se cuban independence case. in i. we will continue to do everything that we can for him certainly everything that we can to get him home to his family, to get him out of detention. i hope that we will continue to work together on this one as actively each of us in our own way because when these things happen all we want is to get these folks home as quickly as we can. so thank you for your efforts on it. and we'll continue to do what we can along with our cons late

congressman our vargas appreciates me bringing it up. .nd and this to say something we -- the comment that i dialogue cannot be -- what was the comment? are they're. haze to be dialed up with a point of action. nd those are the wiling. so i thoroughly agree withs you on that. his mother was running out the clock,. demons and on we also agree that we look forward to a day when the cue wan people with make mary own decision about

future it. a thank you to all of you. . . conley is judged and . t me ask, just a shilt . 3 your answer is like lnl lingling. and the bloopers of it unveiled today. how would you react to that? . in the sitchwailingts in mexico, i've six, set roar us ago. and it was a serious question. ut i think there really.

i do not think we have a failed state in any part of mexico. there are government structures still in place wherever in mexico which i believe their function. they may be stronger or weaker depending on where the drug trade is being applied. they may be under didge. and was the case viously in michoawac as in but i dobe we can she that all state administration and power has been lost in places. >> that's a fair point. but i think we do agree though that obviously one of the

challenges of the new government is they're going to have to re-establish. i think one of the challenges is how do you strengthen government institutions against criminal organizations which made them wook. in order to carry out their business. and use violence as a tool to use that. so absolutely. spacking. raining. . turnses the when we asked him what's the single most important thing you yowleds help. with this outbreak of violence and challenge reassumption in the north part of the country. .he single the he

. he wouldn't answer that one? >> i believe i do understand why he would answer that one. >> could you elaborate for the record? >> why is that important? >> certainly i think both of my colleagues here can testify from the hackett that we haven't heard of or times mrn. there are h what our a of them. it is certainly their perser perception it seem to be that a so number of them come they have done -- they believe what they can within the country and i'm frustrated with -- actually what they're

frustrated with i think is the advance weaponry that they face from these car tools wherever they may get it. >> i just think it's important and it's not part of our discussion up here for political rnts. but our neighborhood says that's a. let me ask both of you. my last question. could you just elaborate a little bit. the president and did not have the aim that his predecessor did. we're going to need it. a how things have changed or -- ther got inen getter or. saying sizz i think

in my opening statement that we in fact are the most at fidse pleased with the commitment and the corporation of the -- and .he we did a berp . by which we would make decisions. s the our judgment that this now not so new government has kept the basic four pillars of our corporation. buzz has more focus on crime prevention particularly in the larger cities and perhaps less focus on targeting the specific criminal organization. that said, it was this

. vernment that produced i noted it in my opening statement perhaps the most bornt thing in. 1980 rated by the colome of the pillars that we had agreed to in other words. we had a child to do. our corporations paid i'd be the last twoun say that the government has walked away from or decided not to support the efforts. >> thank you so much. thank you. >>. >> thank you. you're almost -- almost done. mr. long as you want,

president. grr got ao we had mechanic co. y. there's discussion of u.s. estrictions on the accept part . there is not and are there ill pleel barriers? >> i'm going to have to get back to you, mr. sherman. >> sorry. >> ok. jay come we see so increase american ex-portes from. i think, you know, i think one of those things that -- that we feel is pornly.

small and medium size businesses in the united states which could export and don't right now. that's part of what the president's. shb.re buns thater developing centers that have been opened in mexico. i don't know that i can handle bay. there are trade cases that are underway. >> what practices of the mexican government have we questioned or called a task or ask for the change to allow our expert? >>? >> i'm going to have to get you

a roadblock. i don't want to sort of feed it to the fans. >> the qun glory about them. .hen you deal like be the person is. the first, senled, or is sit. everything else we've talked about would be fourth, five, and. and the state department is of all the foreign ministries in of world the last day school, i was come complete the efforts. >> i would hate to pass. because -- > i've hive been here for 14 years. you have together.

is it -- oneer row couldn't incress it or snow cooting. ven if you would have given -- . it's hard to go back to our districts and talk about the need to be involved in foreign ppears when we're the world, we have the biggest trade deficit of any country by far. time mick reforces right think of how do you that these reforms will look

bad. well, i di. he talked to me art the. i think the energy reform but i think it's very important for the u.s.. this is for mex pension iraq just fought a war in that i have been told was not about oil. oil supplies are critical national security interest. >> i think that oil production of all types is increasing and that is very good for us and our energy security.

i also think our telecommunications is crucial. it is crucial to investors and opportunities. in our second round, i will talk to ambassador brown. >> think you to the panelists. i hope the secretary brings up andrews case during his upcoming trip to mexico. want to sayp, we happy birthday to ambassador brownfield. >> i am 39 years old. >> and holding. committee is adjourned. >> next, a discussion about updating the countries communication networks. after that, representative jab rep. jebour link -- hensarling.

c-span brings you live coverage of president obama on memorial day. live, beginning at 11 a.m. eastern on c-span. >> thank you for your service. i am glad you are here. to have a very nice surprise in the memorial. it is beautiful. >> thank you. [applause] my wife and here, where is she? >> 1, 2, 3 >> are you in the navy?

>> i was in the marine corps. >> oh. marine corps. thank you very much for being here. >> thank you. thank you very much for all that you do. senator -- former senator bob dole welcomes veterans to the world war ii memorial. >> executives from verizon and at&t have called on congress to create a new law governing the internet and broadband services. hosts a discussion on updating america's communication networks. hours. just over 2 >> we have two presentations today. one is -- or two sections of our

discussion. one will be presentations about the ip transition, one will be a panel discussion about what to do about it. let me first thank you for coming to this briefing on the ip transition and what it means that america's telephone networks are essentially merging with the internet and how to regulate that. we have an interesting panel here today, but let me introduce for those who don't know what the i.p. transition is, it's something that most of you probably have already gone through. you probably have already switched to using wireless phone for most of your needs or maybe you get voip from your cable provider or from a telephone company that is providing service through something other than the plain old system. so that transition isn't scary

for most people but there are many people who haven't made that change yet and what we're talking about here today is finally transitioning those old networks into essentially being part of the internet. so we have here today hank and david from respectively at&t and verizon who are going to explain what their companies are doing and what it means for americans, why they're doing it. and how it might offer better services. and then two experts who have been studying the transition jody griffin from public knowledge, out in front and articulating five basic values that they think should guide the ip transition. the f.c.c. seems to agree with them. the question is how to implept those values. and professor christopher yu from the university of pennsylvania law school will offer his perspectives on what tools the f.c.c. has today. so i will remind everybody watching that we're discussing this on the i.p. transition hash tag and we will take questions from the audience first after the initial presentations about what the ip transition is and then after our panel discussion among our experts today.