WHEREAS, the City of Seattle is actively engaged in and supports international trade which has resulted in the sale of goods from Seattle and Washington State, including apples and other agricultural products and high technology products, and increased employment growth in Seattle and Washington State; and

WHEREAS, investment treaties such as the draft MAI should not undermine local authority regarding fair labor practices; and environmental, economic development, and Land Use policies; and

WHEREAS, the United States government, through the Organization for Economic Development (OECD) has participated in negotiations on the Multilateral Agreement on Investment (MAI) ; and

WHEREAS, several OECD countries are now working to move the negotiations of an international investment liberalization agreement similar to the MAI to other venues, including the World Trade Organization (WTO); and

WHEREAS, several regional trade and investment liberalization agreements now under negotiation are being targeted to include provisions of the draft MAI in them; and

WHEREAS, the opposition to some proposed provisions of the MAI is based on substantive criticism, not the venue where it is being negotiated; and

WHEREAS, significant elements in the MAI draft text, if adopted free-standing, or within other international agreements, could restrict the ability of state, county, and city governments to condition new major investment within their jurisdictions from performance requirements to support local economic development, and local hiring; and

WHEREAS, portions of the MAI draft text could restrict the ability of elected officials, including City government officials, to establish policies in the best interest of the City ; and

WHEREAS, the interests of the citizens of the City of Seattle are not promoted by agreements that provide no enforceable rights or protections for local workers, the environment, or communities ; and

WHEREAS, the "National Treatment" provisions of the MAI draft text could prohibit the use of domestic procurement preferences, subsidies and other benefits to local businesses for the purpose of encouraging local economic development; and

WHEREAS, the MAI draft text could create a dispute resolution mechanism to be utilized by investors for claims against local governments which would be external to the United States federal court system, and therefore, unrestricted by existing judicial interpretations of U.S. Constitutional principles ; and

WHEREAS, the MAI draft text contains no public policy exception to the requirement to pay compensation even in an action to protect public health or environmental quality; and

WHEREAS, government entities are currently allowed to regulate within their jurisdiction, without causing a compensable taking of private property, to the extent specified under existing interpretations of the Fifth Amendment of the US Constitution; and

WHEREAS, the MAI draft text, or similar international agreements, could supersede existing constitutional interpretations of a government's regulatory rights under the Fifth Amendment and restrict new regulation by state and local governments; and

WHEREAS, the Association of Washington Cities passed a resolution in support of "...the right of local elected officials to establish policies in the best interest of their constituents, and opposes the MAI to the extent that it violates this principle."; and

WHEREAS, the Metropolitan King County Council unanimously passed a motion "...expressing opposition to the Draft Multilateral Agreement on Investment..."; and

WHEREAS, the Western Governors' Association passed a resolution objecting to the provisions of the MIA, following review of their report titled, "Multilateral Agreement on Investment: Potential Effects on State and Local Government" that identified potential impacts, such as; limiting policies that favor local business, investment incentives, performance requirements, land use, and environmental regulations; and

WHEREAS, the Washington State Association of Counties and the National Association of Counties passed a resolution that: "urges the Administration not to agree to any provisions in the MAI draft text or similar provisions of any international agreement that would preempt local governments' authority or ability to regulate activities within its jurisdiction; and

WHEREAS, the municipalities of Olympia, Tumwater, San Francisco, Oakland, Houston, Boulder, Berkeley, and Vancouver, B.C. have passed resolutions opposing provisions of the MAI; and

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEATTLE THAT:

1. The Seattle City Council seeks to ensure the authority of local governments to regulate within their jurisdiction, pass laws regarding environmental protection and fair labor practices, support local economic development, and decide how to use public procurement dollars; and opposes the provisions of the draft Multilateral Agreement on Investment, or similar provisions in any international agreement, which undermine such authority for local governments; and

2. The Seattle City Council seeks to maintain the right of elected officials to legislate on behalf of their citizens; and opposes any international agreement that limits this right by giving priority to investment rights; and

3. The Seattle City Council expresses its profound concerns with the draft MAI to the Washington State Congressional Delegation and the United States Trade Representative, supports the reservations proposed by the United States government, and supports ensuring any reservations become integral to the text and are not subject to standstill and/or rollback provisions, and respectfully requests to be advised and be a party in any further deliberations or actions regarding the MAI, or similar international agreements.

Adopted by the City Council the _____ day of _______________, 1999, and signed by me in open session in authentication of its adoption this _____ day of _______________, 1999. ________________________________________ President of the City Council

________________________________________ City Clerk 4/12/99 V #4