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R-9692 f:\atty\muni\laws\jl\nafta res.wpd City Council Meeting 7-24-01 Santa Monica, California RESOLUTION NO..%9l... (CCS) (City Council Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA MONICA OPPOSING THE EXTENSION OF THE NORTH AMERICAN FREE TRADE AGREEMENT TO THE FREE TRADE AREA OF THE AMERICAS WHEREAS, the North American Free Trade Agreement ("NAFTA") Chapter 11 has provisions which allow investors to seek monetary compensation from a signatory government through international arbitration if that government expropriates the investor's investment; and WHEREAS, there is no clear definition of "expropriation" in NAFT A Chapter 11; and WHEREAS, the nature of international arbitration is such that municipalities or the public are not directly involved in the process, and arbitration proceedings can be secretive without documents being publicly available through regular channels; and WHEREAS, there is uncertainty regarding the outcome of any NAFTA arbitration because the arbitration decisions by definition are not binding on other arbitration proceedings; and WHEREAS, large monetary awards may lead a signatory government to attempt to influence laws on a local level; and WHEREAS, due to the lack of transparency of the arbitration process under NAFT A and the lack of a clear definition of "expropriation," there is a concern that claims pursuant to NAFTA Chapter 11 may lead to unintended results which affect the legitimate police power of local governments; and WHEREAS, it is anticipated that the negotiations in progress to finalize the Free Trade Area of the Americas ("FTAA") will include provisions similarto NAFTA Chapter 11; and WHEREAS, the City of Santa Monica should not be subjected to the unintended results of an FTAA which includes the Chapter 11 language of NAFTA. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SANTA MONICA, CALIFORNIA: SECTION 1. The Council does hereby oppose the extension of NAFTA to the FTAA. SECTION 2. The Council does hereby request the U.S. Trade Representative to release proposals for the agreement and written submissions to the nine negotiating groups of the FTAA so that local governments may assess the impact of the agreement on their sovereignty. SECT~ON 3. The Council does hereby requestthatthe State Legislature investigate NAFTA and the proposed FTAA, and adopt implementing legislation for the agreements that prevent the interference with or dilution of the sovereignty of local governments. SECTION 4. The Council urges Congress to take an active role in ensuring that the proposed FT AA agreement includes safeguards for the sovereignty of local agencies and protection of state and local environmental laws. SECTION 5. The City Clerk shall send a copy of this resolution to George W. Bush, President of the United States; U.S. Trade Representatives; Congressperson Henry 2 Waxman; Senators Dianne Feinstein and Barbara Boxer; State SenatorSheila Kuehl; and Assemblymember Fran Pavley. SECTION 6. The City Clerk shall certify to the adoption of this Resolution, which shall become effective as set forth above. APPROVED AS TO FORM: ;I Il~{{it) MOUTRIE 3 Adopted and approved this 14th of August, 2001. I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Resolution No. 9692 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 14th of August, 2001, by the following vote: Ayes: Council members: Holbrook, O'Connor, McKeown, Genser, Mayor Pro Tem Bloom, Mayor Feinstein Noes: Council members: None Abstain: Council members: None Absent: Council members: Katz ATTEST: f