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Legal View with Ashleigh Banfield

More on Greek Debt Crisis; Beginning of Obama/Rousseff Media Event. Aired 12-12:30p ET

Aired June 30, 2015 - 12:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[12:00:08]: WOLF BLITZER, CNN HOST: And welcome to our special coverage, we want to welcome our viewers here in the United States and indeed around the world. I'm Wolf Blitzer reporting from Washington.

(BEGIN VIDEO CLIP)

BLITZER: We're only moments away from a joint news conference over at the White House. There you see live pictures coming in from the east room at the White House. President Obama and the visiting President of Brazil Dilma Rousseff wrapping up two days of talks on various issues including trade, climate change, the Greek financial crisis among others. What they haven't necessarily focused on according to officials in both countries is the allegations of NSA Eavesdropping, the scandal that prompted a furious Rousseff to cancel a state visit to the United States back in 2013. Leaks from Edward Snowden at the time revealed that the NSA not only had snooped on Rousseff personally that the NSA also hacked the computer network of the state owned oil company in Brazil.

While we await the leaders to step into the east room I want to bring in our CNN colleagues; our chief political analyst Gloria Borger is here, our Chief National Security Correspondent, Jim Sciutto, our Senior White House Correspondent, Jim Acosta. Also joining us live from Athens the anchor of Quest Means Business on CNN International, Richard Quest.

Let's go to the White House first though, our Senior White House Correspondent Jim Acosta is on the scene for us.

Set the scene for us an important news conference coming up.

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: That's right Wolf and I suspect President Obama will be walking into the east room within the next 10 to 15 minutes with a spring in his step.

As you know Wolf last week was regarded as "his best week ever" by many of the people in the press and some of critics for what happened last week. Two big supreme court decisions that really supported his policies not only on Obamacare but also on gay rights. And of course there was the President's speech down in South Carolina on Friday that was widely regarded as one of his best speeches ever. So he's going to be coming here with a great deal of confidence. Not like we've seen with other press conferences in the past where he's been dogged by questions about ISIS and other foreign policy crisis. But there are some big foreign policy questions hanging over this President's head.

The Iran nuclear talks as we know we just found out earlier today from the State Department Spokeswoman, Marie Harp, that the joint plan of action, that interim deal between the U.S., Iran, and the other world powers that that is going to be extended until July the 7th. And so a little bit more breathing room for those negotiators oversees but I'm sure the President will be asked about all of that.

And of course, as you mentioned Wolf, there is going to be some tension in the air. This is the first time that all of us are seeing the President and President Rousseff together in this kind of setting, holding a joint press conference since she angrily cancelled her plans to come for a state visit here at the White House back in 2013. That was all of course because of those disclosures from the National Security leaker, Edward Snowden who revealed that the U.S. was spying not only on her but on other world leaders. And she has not forgotten that. She gave a very stinging speech at the United Nations that this President won't forget. So we'll all be listening.

Of course the Brazilian Press is here Wolf so they'll be potentially asking about that and of course you know there's plenty other business to discuss. The President of the United States and the President of Brazil will be talking about some climate goals that they've reached during this visit. Both countries are going to announce here in the next few minutes Wolf that they have decided that by the year 2030 both countries will each get 20 percent of their electricity from renewable energy sources and that is a goal that the U.S. was hopeful to get and that they're glad that they have Brazil on board for with a big climate conference coming up at the end of the year. These are the types of headlines that the President would like to accumulate between now and the end of the year for that big climate summit coming up in December. And as you know Wolf, climate change also a very big issue for this President, Wolf.

BLITZER: An important joint news conference coming up; the President of the United States, the President of Brazil. They'll be walking in momentarily. We are told the President will open with a statement, the Brazilian President Dilma Rousseff will have a statement of her own then they will answer reporters' questions. That could go on for a while.

I want to bring in Richard Quest who's watching what's going on. Richard, the whole world is watching what's going on where you are right now in Greece. This financial crisis with enormous ramifications in the Eurozone even here in the United States we saw a pretty bad day, the worst day of the year last year on the New York stock markets.

I guess the question could be asked Richard, and you can answer this question; in 2008 during the recession here in the United States there was suggestions that some of those huge banking firms in New York were too big to fail. Here's the question; is Greece too big to fail?

RICHARD QUEST, HOST of QUEST MEANS BUSINESS: Ha, ha, ha, that's a wonderfully tricky question Wolf because the answer is both yes and no. As a country on its own it could fail and it would not have any major ramifications. But because it is so inextricably linked to the Eurozone; if the Eurozone took a hit, the United States will take a hit and that's the really -- you know we know have a global financial system that is thoroughly meshed together.

[12:05:21] QUEST: Start to unpick one bit and the rest will all fall apart as well. Now what's fascinating here in Athens tonight Wolf, is this new question of the Greeks asking the Europeans for a new bail out. So everything in the last two hours, everything has changed. New rules seem to be on the table, the game is being played a different way. We've no idea what it all means and we're waiting to hear from Brussels about whether they're going to give the Greeks more time while they decide whether they're going to give them more money.

BLITZER: Richard standby. Jim Sciutto, the Administration announcing together with the other partners a July 7th deadline now for this Iran nuclear deal. I suspect that's going to be a question coming up right now.

July 7th is significant 'cause if they wait another day or two the period of review by the U.S. Congress doubles.

JIM SCIUTTO, CHIEF NATIONAL SECURITY CORRESPONDENT: Exactly. There was expectation that they wouldn't make agreement by today which was the original deadline after the previous extension, after the previous extension before that. They knew they needed a few extra days.

This next one is as you say harder because if you go beyond July 9th then it's going to - it changes the way congress in effect reviews this. Instead of 30 days it goes to 60 days and negotiators I've spoken to on both sides are very conscious of the U.S. Congressional Calendar here and they feel the pressure there. That said, there is still major issues to be decided in this. We talk about it a lot, how sanctions are going to be relieved. Will Iran fess up on its past military work? Will Iran allow deep inspections of its nuclear facilities all things that this Administration said they would demand from Iran but there's been some back pedaling on that in recent weeks.

GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: And you know you have an American public that's growing increasingly skeptical. You have a whole host of Republican Presidential candidates that have been out there every day talking about how any deal would be a bad deal and that has affected public opinion. And the longer this continues the more leeway Congress will feel that it has to get involved in this and say, stop.

SCUITTO: Some of the Administration's own advocates on this deal, former officials, not just Republicans, but its own advocates have been raising hard questions in recent days.

BLITZER: The President's going to walk in with the visiting President of Brazil to the east room of the White House there you see live pictures coming in. He comes in our new poll numbers are showing Gloria pretty strong right now.

BORGER: Right.

BLITZER: Job approval numbers the highest it's been in quite a while.

BORGER: Right, 50 percent, very good for him. He's coming in with a Brazilian President who is falling in the polls ...

BLITZER: Back home in Brazil.

BORGER: Back home in Brazil because of her country's poor economic performance. That she's -- there's been a massive corruption scandal over there that she's had to weather with a state owned oil company. And so she comes to the United States looking to push up her rating and ironically you know its Obama who had been suffering but lately there's a sense in the country that the economy is improving. He had a transformational week I would argue last week in this presidency given the Supreme Court decisions on Obamacare and on - and on same sex marriage. So he comes to the podium today looking and feeling pretty good and she's looking to boost her standing back home.

BLITZER: Relatively speaking 50 percent job approval number is pretty good ...

BORGER: Is pretty good.

BLITZER: .. Given where it's been over these past few years.

BORGER: Up five points since May.

BLITZER: Definitely its improved and these poll numbers we're going to have more poll numbers we're going to release after the news conference as well.

He is getting hammered Jim Sciutto though by other Republican Presidential candidates only in the last hour here in the United States. Chris Christie, the Governor of New Jersey who announced he's running for the Republican Presidential nomination. He called this foreign policy, the Obama foreign policy feckless.

SCIUTTO: Yes, and well listen. These are the questions they are raising and they're fair questions to the Administration. Where does the strategy stand on the fight against ISIS in Iraq and Syria and elsewhere frankly 'cause ISIS is showing its strength as we saw on Friday outside of Iraq and Syria, this attack in Tunisia, the attack in France, the attack in Kuwait.

You know key parts of that strategy aren't working. The Iraqi military were supposed to be standing up on the ground backed by the U.S. led air campaign pushing back ISIS, that's not happening.

Across the border in Syria the original plan was to have 5,000 members, moderate members of the Syrian opposition trained within the first year. We are into that first year, this was announced in June of 2014, and those numbers are down in double digits really. So officials acknowledging they're not going to meet that goal.

BLITZER: I want to go back to Richard Quest while we await the Presidents of the United States and Brazil. Richard, the whole world as I say is watching what's going on in Greece right now 'cause the spillover effect could be enormous in Europe, in Asia, here in North America as well.

[12:10:10] BLITZER: So set the scene for us right now as we await the President. What would they like to hear from the President of the United States, the leader of the free world?

QUEST: Before we talk about that Wolf let me just tell you what's happening here in the square behind me and please interrupt when we have to. In the square behind me I just want to show you what is happening.

This is a demonstration that is about to take place here in Athens. Last night we had the demonstration from tens of thousands of people who wanted to a no vote in the referendum, to leave perhaps the Eurozone. Tonight more tens of thousands will be back in the square for the yes vote and that's the way it goes here. Yes, no, yes, no, there's a complete and utter confusion over what the true situation is.

BLITZER: All right, Richard hold on -- hold on, Richard, the President's walking in together with the President of Brazil, so I want to go to the White House, we'll get back to you.

(BEGIN PRESS CONFERENCE)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Good morning, everybody. Or good afternoon.

It is a great pleasure to welcome my partner and friend, President Rousseff, back to the White House.

(SPEAKING IN PORTUGUESE)

This is another opportunity for me to reciprocate some of the extraordinary hospitality that Dilma and the people of Brazil showed me and my family when we visited Brazil.

I want to go back. I didn't get a chance to experience Carnivale. Vice President Biden got to go to the World Cup, not me. But the eyes of the world will be on Brazil again when it hosts the Olympics next year. And that will be another reminder of Brazil's remarkable rise both at home and on the world stage.

You know, as president I've pursued a new era of engagement with Latin America, where our countries work together as equal partners based on mutual interests and mutual respect. As we saw at the recent Summit of the Americas, the United States is more deeply engaged in the region than we've been in decades. And I believe the relationship between the United States and Latin America is as good as it's every been.

We're focused on the future, what we can accomplish together. And a cornerstone of our engagement with the region is a strong partnership with Brazil. I believe our two nations are natural partners in the Americas and around the world. As two of the world's largest democracies, we understand the aspirations of citizens to live in freedom. Dilma, the sacrifices you've made personally in your own life are a

testament to that determination.

As two multi-racial, multi-ethnic societies, we know that countries are stronger when they uphold the rights of all people, a truth we reflected on yesterday when we visited the memorial to Dr. Martin Luther King, Jr.

As two of the world's largest economies, we understand that lasting prosperity and confronting the injustices of poverty and inequality can only come when we truly invest in our people -- their education, their skills, their ability to work and live with dignity. These are enduring interests and values that bind us together.

Now, no relationship between countries is without disagreements. The United States and Brazil are no different. It's often tempting I suspect to focus on whatever challenges there may be in the moment, but in steps that often don't make the headlines, the work of our nations has gone on. And over the years, President Rousseff and I have steadily deepened the ties between our countries.

We partner on global challenges from promoting open government to combating human trafficking, to advancing development in Africa. Since I took office, we've boosted American exports to Brazil by more than 50 percent, and our bilateral trade has reached record levels, surpassing $100 billion a year.

We've expanded collaborations in science and technology and the ties between our people, especially our young people. As part of our 100,000 Strong in the Americas initiative, more Brazilian students come to the United States and more American students go to Brazil. And that's real, concrete progress that we've made together.

Of course, President Rousseff and I believe that given how closely our national interests and values align, there's much more that the United States and Brazil can be doing together.

Dilma, I want to thank you for your personal commitment to taking the partnership between our two countries to the next level. And that's what we've done today across a range of areas.

[12:15:00] First, we're announcing a series of new steps to boost trade and investment that creates jobs for our peoples. With Brazil's recent announcement on infrastructure, American companies will have more opportunities to compete for projects to develop Brazil's highways, airports, ports and railways.

We'll make it easier and more affordable for companies to hire workers in each other's countries, we'll do more help our small and medium- sized businesses and entrepreneurs connect and collaborate and export, and as leaders in science and technology, we've agreed to increase partnerships between our colleges and universities as we develop the next generation of scientists and researchers.

Second, as major economies, the United States and Brazil will continue to lead in the fight against climate change. Since 2005, our two nations have reduced carbon emissions more than any other countries in the world.

In Brazil, this includes very impressive efforts over the past decade to combat deforestation, including in the Amazon, what's sometimes called the "lungs of the planet."

Together, our countries are leaders in clean energy. So today, we're taking important new steps as we work toward a strong global climate agreement in Paris.

I thank our Brazilian friends for previewing elements of their post- 2020 targets for reducing emissions, including substantial new goals to eliminate illegal deforestation and restore forests.

Both our nations are setting new goals on clean energy.

Beyond hydropower, the United States and Brazil will aim to increase the share of electricity we generate from renewable energy to 20 percent by the year 2030. These are very ambitious goals, a near tripling for the United States and more than double Brazil's current output.

Following progress during my trips to China and India, this shows that the world's major economies can begin to transcend some of the old divides and work together to confront the common challenge that we face, something that we have to work on for future generations, and I'm confident that this will lead to a strong outcome in Paris. Third, we're working to deepen our defense cooperation.

Under president Rousseff's leadership, two important agreements were approved by Brazil's Congress last week and are now in effect.

Going forward, it will be easier for our two militaries to train together, to share more education and technology and to cooperate during missions, such as disaster response and peacekeeping. And I want to thank you publicly, Dilma, for making this progress.

And finally, we're working together to uphold democracy and human rights across Latin America.

I very much appreciate President Rousseff and Brazil's strong support for our new opening toward Cuba. I updated Dilma on our progress, including our work to open embassies in Havana and Washington, and I believe that Brazil's leadership in the region, as well as its own journey to democracy and a market economy, can make an important partner as we work to create more opportunities and prosperity for the Cuban people.

In short, I believe that this visit marks one more step in a new, more ambitious chapter in the relationship between our countries. We are focused on the future.

Dilma, thank you for your friendship, your partnership and the progress that we've achieved together. As we look ahead to the Olympics next summer, we Americans will be cheering proudly for Team USA. We'll all be rooting for truly great games with Brazil as our host. Dilma did give me a very nice yellow and green sweatshirt, which says "Brasil" on the back. I can't wear that in -- in public...

(LAUGHTER)

... because I have to root for the USA. But -- but at home at night, it's very comfortable, so who knows?

(LAUGHTER)

I might -- I might slip it on.

So, President Rousseff, thank you.

DILMA ROUSSEFF, PRESIDENT OF BRAZIL (THROUGH TRANSLATOR): Greetings to our dear President Barack Obama. Greetings likewise to all cabinet ministers -- members of the two attending delegations. Greetings likewise to all members and persons attending this session -- photographers, cameramen and - women.

I'd like to thank President Barack Obama as well as the U.S. people for the hospitality with which they have welcomed me ever since I got here and ever since I came to the U.S. through New York.

This morning and last evening, President Barack Obama and I have had very fruitful productive meetings during which we have celebrated an upward trajectory in our relations.

We have also established a robust bilateral agenda in areas such as trade, investment, climate change, energy, education, defense, science, technology and innovation.

[12:20:05] We have reinforced our dialogue on topics of the international agenda, such as the environment and sustainable development, factors that are, indeed, key and essential for the world and for each of our countries.

We also focused on economic governance, financial governance, peace and security. The economic recovery of the United States is an extremely positive development for the world economy and certainly also for the Brazilian economy.

Our bilateral trade is very substantial and is based on higher value- added products. We want to further expand and diversify our exchanges. And here our challenge consists in doubling our trade current within one decade.

The ultimate objective consists in building the conditions to ensure an ambitious trade relationship between Brazil and the United States. To that end, in the short term, we should remove especially the non- tariff obstacles that are in place for industrial goods and agricultural goods.

We should slash down bureaucracy and red tape and do away with the very complicated permits, restrictions. And we would also like, of course, the high quality of production processes in Brazil be duly acknowledged.

In the short term, our priority agenda will focus on two topics as we wish. Number one, regulatory standards convergence and harmonization of technical standards; number two, trade facilitation through a single window systems to streamline, simplify the timeframes involved in customs procedures.

We would also like to cooperate with the U.S. Patent offices; although it is a matter that involves intellectual property there are positive impacts by means of investments as we expand the degree of technology incorporated into Brazilian products.

The U.S. is the main investor, foreign investor in Brazil in 2013. The total aggregate direct investments from the U.S. in Brazil came to 116 billion USDs. Brazilian investments in the U.S. have grown. In 2013, the total or aggregate amount of Brazilian investment in the U.S. came to 15.7 billion U.S. dollars. These figures, nevertheless, do not truly represent the order of magnitude of these investments and it is important to indicate that between 2007 and 2012 the growth of foreign direct investments by Brazil in the U.S. came to 221 percent in terms of the actual increase between 2007 and 2012. We want to further expand these flows, investments and trade flows and we want them to be higher, given the actual potentialities available in our two economies. And that is one of the objectives of the efforts we have engaged in to further strengthen our macroeconomic policy, thus reducing risks for both Brazilian investments and foreign investments in Brazil.

We have also developed the microeconomic agenda, therefore reducing or lessening regulatory risk, expanding the transparency or accountability of processes and also the proper governance of relations between companies and the government.

We're also expanding the investments opportunity -- opportunities in one area where coordination by the government is absolutely key in terms of setting the right expectations. I'm talking about the infrastructure area.

We have launched an ambitious logistics infrastructure program and we hope and we thank President Obama for his commitment in ensuring a greater presence of U.S. investors that process, the logistics development program.

I would also like to say that we have enjoyed a fruitful relationship between our two governments and the business communities. The recent CEO -- bilateral CEO forum held in Brasilia provided us with important suggestions, such as, for example, the establishment or setting up of an -- of an infrastructure information center to identify, coordinate and promote investment projects as well as the suggestion of development -- of developing financial tools and guarantees for investments in the long term with a view to stimulating private sector involvement.

We also have a wide array of several other opportunities and achievements in areas such as defense arena. For example, we welcomed two agreements recently passed by Congress. The defense and cooperation agreement which will allow the -- allow a very fruitful cooperation between the Brazilian ministry of defense as well as the U.S. counterpart ministry of defense.

The military information agreement (inaudible) on military information, which will allow exchange of information in that area

[12:20:26] in the field of technology, biotechnology, air and space technology.

I'd like to highlight one point that President Obama and I discussed. And one on which we have come to a decision which I view as very important. I'm talking about climate change. Climate change is one of the central challenges of the 21st century. And we have one important objective, which is, number one, to ensure that the energy mix in our two countries will have a substantial share of renewable sources of energy.

The decision has a great deal to do with the current outlook and our involvement as part of the global emissions reductions agreement. So that we are indeed in a position to materialize that agreement during the upcoming COP conference -- COP 21 to be held in Paris.

The second area is very much related to the first one, which is the joint decision by our two countries to establish a 20 percent goal in terms of expanding the renewable share of sources of energy, except for the hydro sources, between now and 2020. I very much welcome that decision because it will prove extremely important in reducing greenhouse gas emissions and also it speaks to our clear-cut commitment of ensuring that the environment and also efforts to make sure that global temperature will not go up beyond two degrees, as agreed.

As countries that are as vast as continents, we have this very important greenhouse gas emissions target. We attach a great deal of importance to reducing not only deforestation, as we have done. Actually in Brazil, we have the commitment to come to a zero deforestation or a zero illegal deforestation rate between now and 2030.

And we also wish to turn the page and engage in a clear-cut reforestation-oriented policy. That is an extremely important point for Brazil, and it also reflects the commitment we ourselves have undertaken as part of the forest code in effect in Brazil. So the environmental agenda, in my view, is absolutely key and essential for our two countries.

Cooperation in energy efficiency, for example, we are committed to putting in place smart grids. We are also committed to minimum consumption levels -- energy consumption levels. We are also committed to establishing efficient equipment and buildings. President Obama and I also discussed education extensively in our meetings. We believe that education in Brazil will provide us with two gains. Number one, social inclusion, so as to make sure that these social gains become permanent gains. And number two, the qualitative leap forward as regards our competitiveness towards the knowledge economy. And that is why we are most pleased to see our agreement on cooperation in technical vocational education between the Brazilian Ministry of Education and the Brazilian Department of Education. We are most pleased about that agreement.

We also wish to establish partnerships between the government research institutes in each of our two countries, with a view to achieving scientific (inaudible) improvement, as well as innovation. I would also like to stress the importance of using education technologies as a means to move toward higher quality, more inclusive education.

In that regard, without a shadow of a doubt, the high quality, as well as the ability of the United States to develop scientific and technological research in that arena has proved very important.

May I also state for the record that we attach a great deal of importance to cooperation as part of the Science Without Borders Program.