We're Not Going To Do A Thing
Published: Wednesday, April 12, 2006 Online-Casinos.com
WE'RE NOT GOING TO DO A THING, SAYS U.S.A. IN WTO DISPUTE
US trade representative tells Antiguan lawyer that negotiations are done
Tax-News reports today that the USA has told Antigua that it will
take no action to comply with the World Trade Organisation's ruling on
the US/Antiguan gaming dispute. The deadline for the USA to meet the ruling
by the WTO expired last week (see previous Online-Casinos.com reports).
The ruling in April 2005 upheld one of Antigua and Barbuda's complaints over
US prohibitions, which prevented US banks and major internet search engines
from doing business with Internet gambling firms on the island.The US had asked
for and was given a year in which to take remedial action regarding horse racing
carve-outs; but in fact, the only legislative action taken has been the reintroduction
of a bill which would worsen, not improve the situation of offshore gaming sites.
Mark Mendel, Antigua's counsel based in El Paso, Texas, said last week
that the office of the US trade representative had formally advised him in a
telephone conversation that there would be no further negotiations.
“Yesterday our request to have meaningful negotiations was rejected,”
said Mendel afterwards. “They have come to the mind-boggling conclusion
that they are in compliance and have been in compliance all along, and they
need not do anything.”
Whatever the law says, the reality is that US punters are estimated to be behind
up to half of the $12 billion a year wagered in cyber casinos. Antigua-based
operators are thought to account for 25 percent of this turnover.
After losing the WTO case last spring, the United States pleaded for a year’s
delay to implement federal legislation to accommodate the ruling. But the year
has passed without U.S. action to either close the loophole or make Internet
gambling legal.
Mendel says that Antigua plans to impose compensatory trade sanctions against
the US under WTO rules. Putting tariffs on US exports would only harm Antigua;
but Mendel points out that lifting US patent and copyright protections in Antigua
would permit a manufacturing wave of knockoff products such as music CDs and
DVDs. He says that WTO once granted similar patent waivers as compensation in
a case involving Ecuador.
L. Errol Cort, Antigua and Barbuda’s minister of finance and the
economy, said that the attitude of the US was greatly disappointing. He said:
“I can find no better words in response to the United States than to paraphrase
those of United States Trade Representative Rob Portman, made in relation
to China last week: ‘As a mature trading partner, the United States should
be held accountable for its actions and be required to live up to its responsibilities.’
”
There has been no official public statement from the Americans yet.
