Please forward to all interested persons and organizations.

Later this week -- the latest report is Wednesday night or Thursday morning 
-- the House is expected to vote on an amendment to the 
Commerce-State-Justice appropriations bill which would bar the use of 
federal funds to overturn state laws on the basis that they are 
NAFTA/GATT/MAI illegal. It seems that the amendment has a good chance of 
passing.

In addition to being a worthy amendment in its own right, the passage or 
even near-passage of this amendment could have a salutary effect on the 
ongoing MAI negotiations. The reason is that the applicability of the MAI to 
so-called sub-federal units in the US, that is, state and local governments, 
is a major sticking point in the negotiations. Europe and Japan want to make 
sure that state sanctions will be overturned by the US as part of any MAI 
treaty. If the US cannot credibly promise to do this, it will undermine the 
US negotiating position. For example, if the US cannot promise to overturn 
such state laws, it is not likely that they will get France or Canada to 
agree to anything less than a total carve-out for culture. But if the US 
agrees to a carve-out for culture, the US entertainment industry will walk, 
and the Administration will lose a key business constituency for the MAI. 

The timing of this amendment is propitious. The recent threat by Switzerland 
to challenge state sanctions against Swiss banks over the issue of Holocaust 
compensation has awakened a new constituency to the threats which such 
agreements pose to democracy.

Needless to say, to the extent that Members of Congress hear from their 
constituents over the next few days that this is an issue of concern, that 
would be a positive development.

> Explanation of the Kucinich-Sanders-Ros Lehtinen-DeFazio-Stearns
> amendment to HR 4276
> 
> 
> 
> The purpose of this amendment is to deny funding for federal legal
> challenges to any state, local or tribal law that is inconsistent with
> any international trade or investment agreement.  Pursuant to the GATT
> and NAFTA implementing legislation, the U.S. federal government is
> obligated to pursue every means, including a federal legal suit, to have
> repealed state and local laws that are inconsistent with the WTO.
> Federal authority and responsibility to challenge in Federal court are
> 19 USC Section 3512 (b) (2), and 19 USC 3312 (b) (2).  The
> Kucinich-Sanders-Ros Lehtinen-DeFazio-Stearns amendment simply denies
> funds for those legal challenges in federal court.  The effect of
> passing this amendment will be to protect important state and local
> laws, such as the Holocaust Victim Compensation laws being considered by
> the City of New York, and the States of New Jersey and California, as
> well as the Burma Selective Purchase laws passed or being considered by
> 22 cities and four states including New York City.  The amendment has
> been endorsed by Public Citizen, Sierra Club, Ralph Nader, B'nai B'rith,
> Free Burma Coalition and many other groups.


---------------End of Original Message-----------------

-------------------------------
Robert Naiman <[EMAIL PROTECTED]>
Preamble Center for Public Policy
1737 21st NW
Washington, DC 20009
phone: 202-265-3263
fax:   202-265-3647
http://www.RTK.NET/preamble/
Date: 07/27/98 Time: 12:30:06
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