R-9692
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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
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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
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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:
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