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May 31, 2007
The David and Goliath spat that is Antigua’s ongoing dispute with the US over US anti-online gambling laws has resulted in the little Caribbean island’s release of a statement clarifying the World Trade Organization’s (WTO) rulings against the US. The WTO’s Dispute Settlement Body has adopted a report that has found the US as having failed to comply with the original rulings and recommendations which were previously made by the DSB. The US was recently found to be in violation of its WTO commitments regards access to its markets when it introduced laws restricting foreign online gambling operators, including free online bingo halls, from conducting business in the US. Antigua’s economy is largely dependent on the ongoing success of its online gambling industry and sought redress from the US via the WTO. Antigua's Minister of Finance and the Economy, Dr. Errol Cort reacted to the WTO’s acceptance of US wrongdoing in the case by saying: "It is unfortunate that previous reports in our dispute had left considerable uncertainty and ambiguity in the minds of some and were exploited for those purposes by others. "This time around, though, I am extremely pleased that the compliance panel did not leave any room whatsoever for anyone, least of all the United States, to misconstrue or obfuscate the conclusions of this report." There are a number of key findings in the WTO report which according to Antigua may have contributed to the US discarding any further appeals against the case. Firstly, the that the US already operates a domestic online gambling industry which offers identical services to those from Antigua operators; and secondly, that the US only seeks prosecution of foreign operators. A third contributing factor would be that recent US legislation (UIGEA) designed to criminalize financial transactions as unlawful internet gambling is only applied to foreign online gambling operations, including online bingo. The US has, however, caused a stir in stating that it will withdraw from its commitment for gambling and betting services under what is known as "Article 21" of the GATS agreement. The use of Article 21 is an unprecedented step which comes with the obligation to consider compensatory claims from other WTO member nations that may be impacted by such a revision of commitments. "This astounding and unprecedented action by the U.S. opens up a whole new chapter in the WTO jurisprudence, which runs contrary to the object and purpose of the GATS, the DSU and other WTO agreements," said Minister Cort. Mark Mendel, Antigua and Barbuda's legal adviser, has commented that, "The simple fact [is] that the US has a large, sanctioned domestic industry. If it was seeking to withdraw its commitment due to a strong anti-gambling culture, this would be understandable. However, this is certainly not the case here: it is seeking to withdraw this commitment simply to erect a trade barrier to foreign competition in order to protect and enhance its own, flourishing domestic gambling and betting industry." Currently, US citizens who want to play online bingo are barred from accessing foreign online bingo halls. Written by John Witherspoon - Play bingo online at http://bingostreet.com and read celebrity gossip.
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