US Congressman Wants Full Details On WTO Online Gambling Settlement Concessions

US Congress has finally become nervous enough about the lack of detail provided by the US Trade Representative's Office (USTR) over settlements it has reached with several countries to compensate for the US pulling online poker and online gambling from their World Trade Organization (WTO) trade treaties, that Oregon Congressman Peter DeFazio (D-OR) has formally requested full disclosure of the concessions granted without Congressional approval.

DeFazio's inquiry raises the possibility of Congressional intervention to void new market access commitments granted by the USTR to the countries that have settled WTO compensation claims, including the European Union, Canada, Japan, and most recently Costa Rica (Antigua and Barbuda have not yet settled).

The publication, Michigan Messenger, had earlier requested a copy of the USTR settlement with the European Union under the Freedom of Information Act, but the USTR replied that the document is classified on national security grounds.

The Michican Messenger reported that when Rep. DeFazio found out about this, he contacted the Messenger and asked for a copy of the FOIA denial letter.

Once he saw the contents of that denial, DeFazio promptly sent a letter to all members of Congress, encouraging his colleagues to join him in calling for the USTR to provide the full text of the settlement agreements.

"There is a concern that the USTR may have been ambitious in its use of a 'national security' classification to avoid any publicity of which new business sectors are to be subject to the GATS (General Agreement on Trade in Services) treaty," said DeFazio in a letter dated March 6 2008.

He told the Michigan Messenger "USTR has released a vague list of compensatory adjustments that include "U.S. commitments to maintain liberalized markets for warehousing services (excluding services supplied at ports and airports), private technical testing services, private research and development services, and postal services relating to outbound international letters."

"We do not believe that any of these compensatory adjustments could trigger a national security classification and we do not imagine a scenario in which these agreements could have national security implications," DeFazio added.

DID USTR ABUSE ITS AUTHORITY?

"The issue will be whether the USTR abused its authority by granting new market access to the EU without first securing the consent of the trade committees in Congress," said Nao Matsukata, formerly Director of Policy Planning for USTR Robert Zoellick and now a Senior Advisor for Alston & Bird, LLP.

"Ultimately, this could invalidate the deal with the EU and cause various WTO Members to revisit the issue of fair compensation from the United States."

REGULATE NOT COMPENSATE

Meanwhile, legislation introduced by Rep. Barney Frank (D-MA), called the Internet Gambling Regulation and Enforcement Act (H.R. 2046), proposes to regulate Internet gambling and resolve the international trade dispute.

The bill recently gained the co-sponsorship of one the most respected and distinguished members of Congress, George Miller, who is chairman of the House Education and Labor Committee, a member of the House Natural Resources Committee and chairman of the House Democratic Policy Committee.

"Rather than paying out millions in trade concessions, which would have an adverse impact on the American economy, the US should embrace the legislative solution presented by the Frank bill, which brings the U.S. into compliance by regulating Internet gambling and creating a level playing field among domestic and foreign Internet gambling operators," said Jeffrey Sandman, spokesperson of the Safe and Secure Internet Gambling Initiative.

Read Related Articles: