International trade commission proposed

The Senate Workforce Services and Community and Economic Development Committee on Thursday passed out a bill to create an international trade commission after hearing the sponsor say that trade agreements potentially threaten the state's authority on several fronts, including its ban on gambling.

HB39 would create the 11-member group, which would consist mostly of legislators, to promote international trade relationships but also study whether international trade treaties affect the Legislature's activities.

Rep. Sheryl Allen, R-Bountiful, cited rulings by the World Trade Organization Appeals Board, which has challenged the U.S. about Internet gambling. Other international agreements allow investors to bring cases against countries.

"These trade agreements truly can affect our authority," Allen said, specifically mentioning public utility regulation.

This year will feature many international trade agreements, and a December meeting in Hong Kong previewing those agreements resulted in a list of expected agreement provisions that "strike at the heart of state government authority, such as the state's ability to set professional licensing and technical standards," Allen said. "It would impose burdens, if passed, on notification and defense of the reasonableness of regulations ranging from alcoholic beverage control to zoning."

Even cities can be affected by international pacts, she said, citing a Mexico city's zoning prohibition of a landfill being the subject of a case brought against that country.

Agriculture is another industry subject to the effects of international trade agreements, she said.

"The point is, we need to start watching this and we're not, and this (bill) would form a commission that would allow us to do so," Allen said.

"It's really not meant to be anti-trade at all. We know that's a movement we can't stop. But we do need to scrutinize and give input on those agreements before they become agreements."

A couple of legislators commended Allen for her work on the bill, which they said is needed.

"There has been a vacuum in a lot of areas," said Sen. Ed Mayne, D-West Valley. He noted that some agreements have resulted in trucks driving from Mexico to Canada and back — "driving right next to us and our families" — without having to comply with safety regulations in the U.S.

"These issues have been discussed and the states have been generally left out of the cycle," Mayne said. "And I think that it's critically important that we have a task force, a commission, that reviews some of these trade laws and how they impact our agriculture, our manufacturers, our transportation industry and a lot of things that impact our life, including jobs."

Sen. Mark Madsen, R-Lehi, agreed. "Boy, I think this is a great idea. This is overdue and very constructive and will help our state," he said.

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