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.
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NEW: Felipe Calderon says immigration is biggest challenge Mexico faces with U.S.
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Obama and Calderon criticize Arizona law
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Drug violence, trade, renewable energy also among topics
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Immigration overshadows Wednesday's state dinner, which will honor Calderon
Calderon said the United States and @placeholder now face a series of common challenges, including climate change and organized crime, which is a rising threat to border stability.
A Mexican official familiar with arrangements for @placeholder's visit cautioned that it would be wrong to let the controversy over Arizona's law overwhelm the rest of the visit.
A senior Obama administration official, however, acknowledged that "this is an issue that has resonated in @placeholder (and) is of deep concern to the Mexican government."