Antigua Asks WTO Members to File Against US- no Poker Bluff Here

The World Trade Organization (WTO) ruling in the case Antigua brought against the United States for preventing non US-based online poker and online gambling firms from doing business with US residents became a hot topic again, when the Antigua delegate asked other WTO members to join him in seeking compensation from Washington.

Back in March, the WTO reached the end of a long dispute process when it upheld its prior rulings that the U.S. violates the 1994 WTO's General Agreement on Trade in Services (GATS) which WTO members, including the U.S., originally signed (click here to read related article).

In its comments, the WTO panel criticized how the US continues to give US residents access to US-based Intenet gambling, particularly online horse betting which the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA) essentially legalized (by exempting it along with lotteries and fantasy sports), while simultaneously denying US residents access to online gambling from firms located outside of the USA.

Instead of trying to comply with the WTO ruling by opening its borders to offshore Internet gambling firms or closing down US-based Internet gambling firms, the U.S. announced that it would take the unprecedented step of amending its original 1994 WTO trade agreement obligations by removing online gambling.

As a result of the amendment, other WTO members can now file compensatory claims against the USA, a clause its Trade Representative is trying to evade.

If it were only the tiny Caribbean island nation comprised of Antigua and Barbuda making claims against the USA, it would hardly make a difference to Washington. But any WTO member can file claims for future losses their country may incur as a result of USA's violation.

Since many countries are either already regulating or about to regulate online gambling, the chances increase that the U.S. will have to compensate fellow WTO members. The United Kingdom immediately comes to mind since it is the biggest and most powerful country whose registered gaming corporations lost billions in value when the US blocked access to US customers by passing the UIGEA. And UK online gambling is about to expand with the roll out its 2005 Gambling Act this September.

Ambassador John Ashe of Antigua informed the WTO dispute panel in Geneva, Switzerland last week that his country may target U.S. trademarks, copyrights and telecommunications companies as compensation.

He told fellow WTO delegates that claims are not enough, saying, "Not only do we think that members should press claims for compensatory adjustments as a matter of economic self-interest, but we also believe it is important that the process is made as difficult as possible for the United States."

In a statement to members, Dr Ashe said, "There is something clearly wrong with the concept that after a long, difficult struggle covering years of dispute resolution at the WTO an offending member could ultimately avoid the consequences of its loss by withdrawing the commitment that gave rise to the claim in the first place. As far as we are concerned, our dispute has been resolved and the United States remains obligated to comply."

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