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Antigua and Barbuda File $3.44 Billion WTO Claim Against USA

by PokerPages.com
Thu, Jun 21st, 2007 @ 12:00am

Following the European Union's claim filed earlier this week, the tiny dual island nation of Antigua and Barbuda has lodged a claim for $3.44 billion compensation from the United States over its decision to withdraw certain World Trade Organization (WTO) commitments, which it will seek primarily through the suspension of global copyright and intellectual property rights agreements.

If the WTO were to allow the Antiguans to suspend all intellectual property obligations to the United States, the American IP industry could face a tiny adversary with an unlimited right to reproduce for its own benefit American IP goods of any kind, from automobiles to shoes to semiconductor technologies.

Anyone for cheap Microsoft software, or the latest DVDs, CDs and games flooding the market??

Antigua and Barbuda filed the original WTO case in 2003 against the United States for their protectionist behavior preventing foreign online gambling and online poker companies from accepting US customers, while still allowing domestic online gambling.

Antigua claimed the US was not in compliance with the trade commitments made when it joined the WTO.

The WTO ruled several times against the United States, and has maintained that the U.S. could keep restrictions against online gambling if they were also applied equally to US-based businesses, citing 2006 Unlawful Internet Gambling Enforcement Act (UIGEA) carve outs for U.S. businesses such as horse racing, state lotteries and fantasy sports.

In not yielding to opening up the online gambling business, the United States Trade Representative's (USTR) has taken a similar hard line to that of the US Department of Justice (DOJ). Several people have noted from American arguments in front of the WTO that it is apparent the two have been working together on this case, which is not surprising, since this dispute revolves around American criminal law and how it impacts internet gambling.

When the U.S. lost its final appeal March 2007, the USTR announced that it would take the unprecedented legal step of changing the international commitments it made as part of the 1994 General Agreement on Trade in Services (GATS) agreement amongst the 150 members of the WTO.

As a result, the U.S. declined to challenge the WTO ruling, because it says that its legal maneuver effectively ends the case (click here for related article).

Under the GATS, if a country withdraws its commitments other nations can seek compensation for any services trade opportunities that they could prove they lost through the change. Which is exactly what the EU and now Antigua and Barbuda have done.

How many other WTO countries will file similar suits before the June 22 deadline to do so passes? China and Japan are expected to react shortly.

Read Related Articles:

  • EU Seeks Compensation for U.S. Ban on Online Poker & Online Gambling
  • Antigua Asks WTO Members to File Against US- no Poker Bluff Here
  • USA Decision to Remove Online Poker Online Gambling Slights WTO
  • USA loses WTO Appeal in Online Poker & Online Gambling Case
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