After three years of wrangling in World Trade Organization procedures
with the United States, the island nation of Antigua and Barbuda has
initiated investigations into the alleged non-compliance of the US
with certain WTO rulings.
A new WTO investigative panel has been requested by the islanders
in order to enquire whether US restrictions on internet gambling breach
world trade rules. US laws banning interstate betting over the internet
will be examined by the investigators, who are required to report
back to the WTO within 90 days.
The Caribbean state of Antigua and Barbuda, host to many online casinos,
has been in a long-running battle with the US over the legality of
its stance on the industry. The WTO earlier found that some of the
US laws were not in line with trade rules, though others were permissible,
and it recommended that the non-compliant rules, which referred to
Internet horse race betting, be addressed.
Antigua and Barbuda claim the American online gambling prohibitions
are hampering the country's economy. The island government has invested
heavily in the industry in a bid to lessen its reliance on the tourism
sector, and it says three US laws are preventing companies from legally
accepting bets from the US.
The announcement of the WTO investigation comes during a month of
turmoil for the online gambling industry, with anti-online gaming
legislation being passed by the House of Representatives in the USA,
and the arrest by the Department of Justice of a senior online gambling
executive on his way through the USA to his Costa Rican base.
The Antiguan authorities asked for the panel to be set up after negotiations
with the US broke down.
Trade partners who fail to implement WTO rulings often find themselves
hit by sanctions - for example, extra tariffs on their exports.