President Obama highlights economy, trade in State of the Union speech

WASHINGTON (AP) - President Barack Obama announced plans to withdraw more troops from Afghanistan and take steps to boost the fragile U.S. economy as he delivered a closely watched State of the Union address Tuesday laying out his priorities for the year and for his newly begun second term in office.

The hour-long speech before a joint session of Congress' two chambers was dominated by domestic issues, as Obama challenged deeply divided lawmakers to find compromises that would boost job creation and strengthen America's middle class.  He conceded America's economic revival is an "unfinished task."

His focus on jobs and growth underscored the degree to which he is still hampered by the economy, with unemployment persistently high and consumer confidence falling, even as he pursues a bolder agenda including overhauling immigration laws, enacting stricter gun-control measures and tackling climate change.

Still, he said: "We have cleared away the rubble of crisis, and we can say with renewed confidence that the state of our union is strong."

Foreign policy received less attention, but took on greater urgency as the speech came hours after North Korea detonated a nuclear device. Obama said "provocations" like the test will further isolate North Korea "as we stand by our allies, strengthen our own missile defense, and lead the world in taking firm action in response to these threats."

Obama also announced that the U.S. will begin talks with the European Union on a trans-Atlantic trade agreement, "because trade that is free and fair across the Atlantic supports millions of good-paying American jobs."

The annual address is one of the biggest events in Washington. It is broadcast during prime evening viewing hours by the major television networks, with Washington's most powerful officials -- lawmakers, Supreme Court justices, military leaders and Cabinet members -- all in attendance and millions of Americans watching from home.

This year's speech came at one of the strongest points in Obama's presidency. He won re-election by a convincing margin, is generally popular, and opposition Republicans appear weakened and fractured. Still, Republicans control the House of Representatives and tough fights loom on the budget and other top issues.

With the economy still the biggest concern of most Americans, Obama devoted less time to foreign policy this year.  But his announcement on the withdrawal of 34,000 troops from Afghanistan -- about half the force there -- was a major development, even if it was highly anticipated. It puts the United States on pace to formally finish the protracted war by the end of 2014.

Obama also pledged to work with Russia to seek further reductions in nuclear arsenals. In addition to the European trade talks, Obama said he would work to complete negotiations on the Trans-Pacific Partnership, a trade agreement with the Asia-Pacific region.

He also said the United States "will keep the pressure on a Syrian regime that has murdered its own people, and support opposition leaders that respect the rights of every Syrian."

In addressing climate change and gun control, Obama waded into territory where he will face stiff resistance from Republicans.

On climate change, Obama pledged to work with lawmakers to seek bipartisan solutions, but said if Congress doesn't act, he'll order his Cabinet to seek steps he can take using his presidential powers.

Obama said major storms, droughts and wildfires that have afflicted the United States can be considered "just a freak coincidence, or we can choose to believe in the overwhelming judgment of science - and act before it's too late."

He implored Congress to at least hold votes on gun control measures, listing a series of high-profile shootings, such as the killings of children at a Newtown, Connecticut, elementary school and the shootings at an Aurora, Colorado, movie theater.

"The families of Newtown deserve a vote. The families of Aurora deserve a vote," he said, drawing a standing ovation from Democratic lawmakers and supporters in the gallery in the most boisterous moment of the night. Obama added that no measures would prevent every act of gun violence. "But we were never sent here to be perfect. "

His push for overhauling immigration laws has broader appeal. It is one of the few major issues on which badly divided Republicans and Democrats can find common ground. Republicans have long opposed relaxing immigration laws, but are reconsidering their positions as they try to appeal to Hispanics, a growing part of the U.S. electorate that has overwhelmingly favored Democrats.

One of the leading Republican voices for immigration reform, Sen. Marco Rubio, was tapped to deliver the official Republican response. Rubio, a 41-year-old Cuban-American, is one of the party's brightest stars and a possible 2016 presidential candidate.

Rubio accused Obama of opposing the free-enterprise system. He said Obama's solution "to virtually every problem we face is