A Utah legislative commission is taking a closer look at international treaties and their impact on state rights.

On Tuesday, the Utah International Trade Commission had its first meeting, reviewing a host of issues from bilateral trade agreements to World Trade Organization regulations.

Rep. Sheryl Allen, R-Bountiful and co-chairman of the commission, said one of the most pressing issues facing Utah and other states is domestic regulation, which includes a state's ability to regulate utilities, license businesses and handle pharmaceutical coverage issues.

"Because international trade agreements can have such a profound effect on states, and frankly even on local governments and their ability to zone, states need to start paying attention to the issues," Allen said after the meeting. "Utah has been passive on this, and this commission hopefully will change that."

For instance, the General Agreement on Trade and Tariffs includes a provision that could thwart a state from favoring in-state businesses in government procurement contracts and also in economic development initiatives.

"There are times when what you would like to do is help Utah businesses," Brian Farr, a member of the commission representing the Utah Attorney General's Office, told the commission. "This provision could keep you from doing that."

Jake Anderson, a law student who is working with Farr on the effects of international trade agreements on a state's sovereignty and regulatory powers, said it is difficult to know where the risks lie in trade issues under the jurisdiction of the World Trade Organization.

"They meet in secret," Anderson testified. "It's not really known exactly what is on the table and what is not."

Currently Wal-Mart and other retailers are lobbying the Office of the U.S. Trade Representative to eliminate zoning laws.

"They mostly push to get rid of zoning laws in foreign countries, but as we do that, it will also happen in the United States," Anderson said. "We definitely need to be more aware and more informed of exactly what is going on. No one is going to be a champion of states' rights. States have to stand up and do it themselves."

A dispute involving the Caribbean island of Antigua and the United States grabbed international attention in 2004 after a World Trade Organization panel ruled in favor of Antigua's Internet gaming industry.

In 2005, a WTO appellate body ruled that U.S. gambling laws are subject to challenge but that most federal restrictions on gambling are justified under a "public morals" exception. Both the United States and Antigua claimed victory in the WTO appellate decision.

The Utah International Trade Commission was enacted under legislation this year and consists of 11 members, of which eight are voting members. Two are nonvoting members ap- pointed by the governor, and a nonvoting designee is from the Utah Attorney General's Office.

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E-mail: danderton@desnews.com