Antigua and
Barbuda take on the U.S. at the WTO
Earlier this week, the World Trade
Organization declared that it would appoint a three-member panel to
investigate if the U.S. crackdown on offshore Internet gambling
operations in the Caribbean Nation violates their international trade
accords.
The
Caribbean nations of Antigua and Barbuda filed a challenge stating that
"U.S. laws that ban the transfer of funds to offshore gambling
operations and make it difficult for non-U.S. firms to obtain gaming
licenses violate trade agreements ensuring market access to
‘cross-border services’".
Some 54
nations, mostly in Europe and the Caribbean, have legalized regulated
online gambling, according to the Interactive Gaming Council. Already,
there are signs that other countries may take sides against the United
States. Several nations, including Taiwan, Mexico, Canada and the EU
states, said today they would reserve their right to join the dispute on
the side of Antigua and Barbuda.
In the 1990's, Internet gambling became
a large part of the Caribbean Nation’s economy, helping to employ more
than 5000 people, in 100 different online gaming companies. In addition
to the jobs created, a large portion of the revenue from taxes on the
casinos is used to run health, education and other services. The
countries sought out investments from online casinos as a way to reduce
their dependence on tourism, something that has always been vulnerable
to weather such as hurricanes, and fluctuations in the global economy.
Since the new U.S. legislation barring residents from betting over the
Internet through offshore casinos in the Caribbean, there are less than
40 gambling companies operating, employing half as many people.
The government of the twin islands
decided this left them no choice but to exercise "its responsibility to
our people to maintain their jobs and defend our small and vulnerable
economy in a highly competitive world." They contend that the bars
placed on cross-border Internet gambling breach the WTO commitments to
be open to services provided by other countries.
The United States counters that it made
no promise to allow cross-border gambling in negotiations for the
present WTO pact on free trade in services. U.S. trade authorities
maintain that online gambling services are not within the scope of U.S.
trade commitments. U.S. officials also have argued that online gambling
services are a haven for money laundering that supports terrorism.
A clearly shameless United States, the
biggest single economy in the 146-member WTO, said it was confident it
would prevail in the dispute, saying online gambling services "present
psychological dangers to some segments of society, as well as creating
serious social problems and law enforcement difficulties."
Under WTO rules, both sides in the
dispute will have 30 days to agree upon the appointees to the
three-member panel. The panel appointed by the WTO will have six months
to determine a ruling. Whoever loses the case can appeal, and if Antigua
emerges victorious, the United States would be asked to change the laws
with to respect to online gambling.
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