Draft Letter from State/Local Elected Officials to President Clinton on the World Trade Organization
(Note: It is recommended to cite specific local examples under each bullet.)
Dear President Clinton,
I am writing to urge you to work with members of civil society and Congress to reform the World Trade Organization (WTO) into an accountable, democratic and inclusive organization.
In its four years of existence the WTO has ruled exclusively in favor of multinational corporations, dismantling laws that the citizens of have elected me and other officials to create. I am outraged that you continue to support an undemocratic organization that operates largely in secret and where local and state governments' input has been excluded. As a person elected to create laws that promote local economic development, protect the public's health and uphold environmental safeguards, I am unwilling to support an organization that would threaten my ability to carry out these tasks.
I am also very concerned that several provisions in the Multilateral Agreement on Investment (MAI) have been included in the WTO despite the fact that numerous local and state governments have passed resolutions against the MAI as a threat to their sovereignty. Below are several MAI provisions that, as part of the WTO, stand to endanger attempts to promote local economic development, engage in divestment and procurement preferences and protect natural resources from unsustainable practices.
- The National Treatment provision could prohibit the use of domestic procurement preferences and subsidies and other benefits to local businesses for the purpose of encouraging local economic development.
- The "Most Favored Nation" provision could prohibit state and local governments from choosing not to do busines with entities that repeatedly violate international human rights, labor, and environmental laws.
- In NAFTA, the "Expropriation" provision could prevent state and local governments from regulating within their jurisdiction to protect health, safety, and the environment. "Expropriation" language is so broad that any state or local law that even has the indirect impact on a foreign investor's profits could give that investor standing to sue for a "taking" of its property. The $970 million Methanex NAFTA challenge of California's move to ban MTBE is an outrageous example of the abuse of power by corporations under so-called "free trade agreements." Investors profit is now being protected above and beyond citizens' rights.
I call on you to oppose a new round of negotiations until a public assessment is made to determine the effects of WTO's policies and rulings to date. I also ask you to oppose any future trade agreement or trade bodies that can overrule the sovereign policies of nations, states and local governments and that do not include a mechanism to involve local and state governments.
Sincerely,