BERKELEY CITY COUNCIL RESOLUTION OP

[OKKAR66127@xxxxxxx]

BERKELEY CITY COUNCIL RESOLUTION OPPOSING THE 
Multilateral Agreement on Investment (MAI)

February 24, 1998

To:  Honorable Mayor and Members of the City Council
Spring, Kriss Worthington

Subject:    Resolution Opposing Multilateral Agreement on Investment

RECOMMENDATION:

That the City Council adopt a resolution opposing the signing of the 
Multilateral Agreement on Investment (MAI) by the United States at the

Organization for Economic Cooperation and Development (OECD) meeting
in Paris which is tentatively scheduled for April 1998.

BACKGROUND:

The OECD is comprised of the world's 29 most developed nations. These 
nations wish to adopt a treaty, the MAI, which would guarantee the
economic rights of their foreign investors in all member countries.
Investors' rights and interests would override decisions of local,
state, and federal governments.

If enacted, the MAI would prevent Berkeley, along with cities,
counties, and states across the world, from enacting economic
sanctions on companies whose business practices are destructive to the
environment and/or which support repressive regimes.  The MAI would do
this by enabling the foreign investors to sue governments which used
the economic sanction mechanism to influence change. The MAI would
essentially negate Berkeley's decision not to purchase products from
companies doing business with the repressive regimes in Burma 
and Nigeria.  Berkeley would be unable to make that choice.

Economic sanctions are powerful.  It is no accident that the MAI is
being introduced.  South Africa would likely still be under apartheid
rule if such a treaty had been in effect. If the MAI passes, the right
to choose with whom we do business would be eliminated.  The MAI would
also prevent Berkeley from giving local businesses preferences in
purchasing goods and services.

The MAI must not pass.  If it does, all levels of government will be
unable to exercise their right to use their buying power consistent
with their values, an insidious assault on governmental authority.

Key provisions of the MAI would:

*   Revoke existing bans or restrictions on investments in certain
countries such as Burma and Nigeria.  Under this treaty, the historic
sanctions Berkeley enacted to divest from South Africa under apartheid
would be illegal.

*   Allow private investors to sue governments directly for passing 
legislation regulating business.  These suits would be adjudicated by 
international tribunals.

*   Ban "performance requirements" such as preferences for hiring
Berkeley residents, giving local businesses preferences in purchasing
and service contracts, and would negate economic development policies
which earmark subsidies and other forms of public assistance, such as
CDBG and General Funds, to local economies and community reinvestment
act laws in general.
   
*   Restrict laws to protect environmental quality or the production
and sale of dangerous products.


CONTACT PERSON:
Council member Linda Maio           Council District One 644-6359
*******************************************
RESOLUTION OPPOSING THE MULTILATERAL AGREEMENT ON INVESTMENT

WHEREAS, the proposed Multilateral Agreement on Investment (MAI)
represents a threat to sovereignty of local governments throughout the
United States; and

WHEREAS, the MAI would prohibit the City of Berkeley from passing any
new ordinances and would necessitate revocation of any existing
ordinances, into the indefinite future, that conflict with the
provisions of the proposed MAI; and

WHEREAS, the MAI would bar Congress, state legislatures, and city
councils from using trade sanctions to punish nations such as Burma
and Nigeria for human rights abuses, violations of labor standards,
and persecutions; and

WHEREAS, the interests of the citizens of Berkeley are not furthered
or promoted by an agreement that creates new rights and protections
for international investors, but provides no rights or protections for
workers, the environment, or communities.

NOW THEREFORE BE IT RESOLVED, that the City Berkeley opposes the 
Multilateral Agreement on Investment because it would eliminate
Berkeley's right of  oversight and local sovereignty; and

BE IT FURTHER RESOLVED, that the City of Berkeley hereby urge its
state and federally elected officials and lobbyists to not support the
Multilateral Agreement on Investment.
 ........................

 Bob Olsen	Toronto		bobolsen@xxxxxxxxx   (:-)
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