This motion was passed unanimously January 30, 2001 by the City of Vancouver, British Columbia, Canada:

WHEREAS Vancouver City Council has passed resolutions opposing the

Multilateral Agreement and Investment (April 28, 1998) and requesting the

federal government file a permanent and explicit exemption in the WTO

services agreement (the GATS) limiting application to areas of Federal

jurisdiction (May 2, 2000) due to the potential negative impacts these

multinational agreements would have on local government jurisdiction;

AND WHEREAS despite reservations included in the North American Free Trade

Agreement for local government measures, these reservations have not

protected local government from challenges to their jurisdiction under the

investment (Chapter 11) provisions of NAFTA;

AND WHEREAS a NAFTA dispute panel has ruled in a NAFTA investor-state law

suit in favour of the US-based waste disposal company, Metalclad, which

claimed damages based on the refusal of the Mexican town of Guadalcazar to

grant a construction permit for its plant;

AND WHEREAS a review of the NAFTA panel's decision is being conducted in

the BC Supreme Court by Justice Tysoe in February, 2001 and the Canadian

government has been granted intervenor status in the hearing;

AND WHEREAS in its statement of claim, Metalclad asked for compensation

because the Mexican federal government "through its local governments of

SLP [the state government] and Guadalcazar [the local municipality]

interfered with its development and operation of a hazardous waste

landfill...While neither Guadalcazar nor SLP are named as Respondents,

Metaclad alleges that Guadalcazar and SLP took some of the actions claimed

to constitute unfair treatment and expropriation violative of NAFTA.";

AND WHEREAS in its ruling, the NAFTA panel stated that it was "improper"

for a Mexican local government to deny a permit on the basis of

environmental impact considerations, public opposition, or the past record

of performance of the proponent;

AND WHEREAS part of the US$16 million award to Metalclad was for

expenditures made by the company before the local license was even applied

for;

AND WHEREAS the ruling implies that the federal government of Mexico had a

duty to inform Metalclad of all state and municipal measures that might

affect its proposed development, thus requiring special treatment for

foreign corporations not accorded to domestic ones.

THEREFORE BE IT RESOLVED

1. That the City of Vancouver petition the federal government to use its

intervenor status in the BC Supreme Court review of the Metalclad case to

defend the ability of local government to act in the interests of citizens

and the environment and to ensure that measures taken by local governments

are not subject to challenge under NAFTA's investor-state provisions;

2. THAT the City of Vancouver, while recognizing trade can have beneficial

impacts on our region, petition the federal government to refuse to sign

any new trade and investment agreements, such as the proposed expansion of

NAFTA being negotiated in the Free Trade Area of the Americas, that

include investor-state provisions similar to the ones included in NAFTA.

DEFENCE of CANADIAN LIBERTY COMMITTEE/LE COMITÄ de la LIBERTÄ CANADIENNE

C/0 CONSTANCE FOGAL LAW OFFICE, #401 -207 West Hastings St., Vancouver,

B.C. V6B1H7

Tel: (604)687-0588; fax: (604) 872 -1504 or (604) 688-0550; cellular(604) 202 7334;

E-MAIL cfogal@netcom.ca;

www.canadianliberty.bc.ca

The constitution of Canada does not belong either to Parliament, or to the

Legislatures; it belongs to the country and it is there that the citizens

of the country will find the protection of the rights to which they are

entitled Supreme Court of Canada A.G. of Nova Scotia and A.G. of Canada,

S.C.R. 1951 pp 32

Counter Set April 4, 2001