Washington ( CNN ) -- Politically sensitive issues such as immigration , border security , drug trafficking and trade took center stage in Washington on Wednesday as President Obama welcomed his Mexican counterpart , Felipe Calderon , to the White House . Both leaders used the occasion -- the fourth time they have met for bilateral talks -- to take sharp aim at Arizona 's new law meant to crack down on illegal immigrants . Calderon characterized the measure as discriminatory ; Obama called it a `` misdirected expression of frustration . '' The leaders criticized the law while meeting with reporters shortly after Obama , Vice President Joe Biden and Secretary of State Hillary Clinton rolled out the red carpet for Calderon in a formal White House arrival ceremony . U.S. first lady Michelle Obama and Mexican first lady Margarita Zavala joined their husbands for the occasion , which was to be followed by a state dinner Wednesday night . Calderon is to address a joint session of Congress on Thursday . `` Our progress today marks another step forward in a new era of cooperation and partnership between our countries , a partnership based on mutual interests , mutual respect and mutual responsibility , '' Obama said . Calderon said the United States and Mexico now face a series of common challenges , including climate change and organized crime , which is a rising threat to border stability . But what ultimately `` turns us into good neighbors '' is a common belief in `` freedom , justice and democracy , '' he said . Obama ticked through a list of items he said the two leaders had agreed upon during their meeting . On the economy , he said , they had agreed to streamline regulations while strengthening protection of intellectual property . To facilitate trade , they had reaffirmed a `` commitment to a 21st-century border that is modern , secure and efficient . '' He also pledged to expand joint initiatives promoting renewable energy and `` smart grid '' technology . Turning to illegal drug and weapons trafficking , Obama noted that his administration is now screening 100 percent of south-bound rail cargo . Moving in the other direction , Mexican authorities in recent years have seized 45,000 weapons that could be traced to the United States . Obama also cited new initiatives to cut U.S. demand for illegal drugs . `` As your partner , we 'll give you the support you need to prevail ... against the drug cartels that have unleashed horrific violence in so many communities , '' Obama told Calderon . Drug violence claimed 6,500 lives in Mexico last year . But Calderon said 90 percent of the casualties from the war on drugs are criminals fighting each other , adding that the cartels `` are not winning . '' `` The Mexican gangs are passing through a very unstable process ... and fighting each other and that explains most of those casualties , '' Calderon said on CNN 's `` The Situation Room . '' He acknowledged , however , that innocent people have also been killed . Obama also noted Mexico 's current seat on the U.N. Security Council , highlighting the two countries ' agreement on possible sanctions against Iran to stop Tehran 's current nuclear program . The issue of Arizona 's new immigration law , however , consumed most of the leaders ' time during their meeting with reporters . The measure , which will allow law enforcement officers to ask for proof of legal residency of anyone who is being investigated for a crime or possible legal infraction , has drawn widespread criticism in Mexico . Critics contend , among other things , that the law will lead to racial profiling against Hispanic residents . Later Wednesday , Calderon acknowledged that immigration is the biggest challenge Mexico is facing with the United States . `` It is provoking a lot of tensions between our people , '' Calderon said . `` This is a phenomenon that we need to solve . ... And the best way to solve that is creating new jobs in Mexico and that is exactly what we are trying to do . '' Calderon said Mexico is working to change its own immigration policies to address criticisms from officials in Texas , Arizona and New Mexico who claim they 're only trying to do in their states what Mexico is doing in the southern part of its country . Calderon said that illegal immigration has not been a crime in Mexico since last year . `` In the past , Mexican authorities were in an unfortunate way in the treatment ( of immigrants ) , '' he said . `` We changed already the law and that is different today . We are trying to write a new story . '' Regarding Arizona 's tough new immigration law , Calderon said the potential for racial profiling with the statute `` is against any sense of human rights . '' Obama said he thinks the Arizona law `` has the potential of being applied in a discriminatory fashion . ... A fair reading of the language of the statute indicates that it gives the possibility of individuals who are deemed suspicious of being illegal immigrants from being harassed or arrested . `` The judgments that are going to be made in applying this law are troublesome , '' he noted . Obama noted that he has directed the Justice Department `` to look very carefully at the language of this law to see whether it comports both with our core values and existing legal standards , as well as the fact that the federal government is ultimately the one charged with immigration policy . '' Obama said he 'll make some decisions about how to address the law after he gets a final report from the Justice officials . A broad coalition of civil rights groups filed a class-action lawsuit against the measure Monday , arguing that it violates the U.S. Constitution 's equal protection and free speech guarantees , among other things . In Arizona , the city councils of Tucson and Flagstaff have also decided to challenge the law in court . A majority of Americans , however , appears to back to the measure . Fifty-nine percent of adults nationwide supported the law in a May 6-9 Pew Research Center Poll . Thirty-two percent opposed it . The Arizona law , Obama asserted Wednesday , `` expresses some of the frustrations that the American people have had in not fixing a broken immigration system , and , frankly , the failures of the federal government to get this done . I 'm sympathetic to those frustrations . '' Obama repeated his call for comprehensive immigration reform but said such a measure ca n't pass without Republican support . A Mexican official familiar with arrangements for Calderon 's visit cautioned that it would be wrong to let the controversy over Arizona 's law overwhelm the rest of the visit . `` It will not define the visit or the relationship , '' the Mexican official said . `` The U.S.-Mexican relationship is much more rich and diverse than one issue . '' A senior Obama administration official , however , acknowledged that `` this is an issue that has resonated in Mexico ( and ) is of deep concern to the Mexican government . '' This month , Mexico 's ambassador to the United States , Arturo Sarukhan , warned of `` a worrying surge '' of anti-immigrant sentiments . He warned that the Arizona law might `` poison the well from which our two nations have found and should continue to find inspiration for a joint future of prosperity , security , tolerance and justice . '' CNN 's Charley Keyes and Alan Silverleib contributed to this report .
NEW : Felipe Calderon says immigration is biggest challenge Arizona faces with Arizona Obama and Calderon criticize Mexico law . Drug violence , trade , renewable energy also among topics . Immigration overshadows Monday 's state dinner , which will honor Pew Research Center Poll .