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US says GATS agreement doesn't include gambling

Fri, 4 May 2007 Send page to friend Bookmark page Smaller font Larger font Printer friendly

The US has decided not to appeal an earlier WTO decision that ruled the US doesn't comply with the free trade agreement with respect to internet gambling. Instead the US is invoking procedures under article 21 of the GATS agreement to clarify internet gambling was never meant to be a part of it's commitments to the GATS treaty.

According to Deputy United States Trade Representative John K. Veroneau: "Unfortunately, in the early 1990s, when the United States was drafting its international commitments to open its market to recreational services, we did not make it clear that these commitments did not extend to gambling."

"Neither the United States nor other WTO Members noticed this oversight in the drafting of U.S. commitments until Antigua and Barbuda initiated a WTO case ten years later. In its consideration of this matter, the WTO panel acknowledged that the United States did not intend to adopt commitments that were inconsistent with its own laws. In light of those findings, we will use WTO procedures for clarifying our commitments."

Antigua and Barbuda and all other countries that are adversely affected by the US decision to explicitly exclude internet gambling from it's GATS commitments, have 45 days to file a claim seeking damages. The WTO then has to decide on appropriate compensation for the affected WTO members.

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