Writing Robert Zoellick, U.S. Trade Representative
(March 28, 2003) the California State Senate stated:

The proposed rules on ‘domestic regulation’ could allow foreign corporations and governments to challenge a wide range of California health care regulations as ‘more burdensome than necessary.’ This could include nurse-to-patient staffing ratios, professional licensing standards and laws against discrimination by licensed insurance companies on the basis of genetic characteristics. Service rules could also have devastating impacts on the environment by restricting the ability of governments to limit permits for oil drilling, land use and waste incineration. Drinking water standards, pesticide application standards, renewable energy laws, and toxic waste laws could also be challenged under domestic regulation, as well as national treatment or market access provisions.

These implications are very troubling and strike at the heart of our ability to regulate in the public interest. Recently leaked negotiating documents from the European Union (EU) reveal that the EU not only seeks market access to our service sectors, but explicitly requests future limits on state and local regulatory authority. These documents request that the U.S. open up a number of public services to trade by multinational corporations, including drinking water, electricity, postal and sanitation services. In addition, they request the limitation of state oversight of insurance, the extension of small business loans to foreign companies and the limitation of approximately 44 specifically identified state laws.