Last week, I provided some background information in order that people could better understand Antigua & Barbuda’s challenge to the Unites States on the Cross Border Supply of gambling services. Stating that the US’ position on Internet gambling arose in a large part from a 1999 congressionally commissioned study, Internet gaming has been incorrectly called a haven for money launderers and a bane on US public finances.
With cries about increased gambling among the youth, the US, at the same time that it has been denying access to their markets by our companies, has been busily granting new licences to everything from Vegas styled casinos to new lotteries and more recently, online poker.
I have made a number of comments in the media regarding the government’s handling of the WTO issue. My statements, for the record, were to the point, that Antigua & Barbuda, as one of the smallest states that is signatory to the WTO must align international support behind its action if it is to succeed.
I was very surprised that my statement seemed to have drawn the ire of some and the misunderstanding of many. Seemingly deemed as simply another criticism of a beleaguered government, I believe that my position once clarified is a logical one.
When Antigua & Barbuda filed its application to the WTO, a number of countries signed on as having interest in the proceedings. Without going into an overly technical dissertation, essentially these countries were concerned about the United States’ attempt to, in effect; re-interpret its GAT Commitment to its advantage.
Placed within a context, the US has taken many countries to task at the WTO charging that the explicit GAT Agreement must be binding on a country. In Antigua & Barbuda’s case, however, they try to argue that their GAT Agreement on the cross border supply of services carried with it an implied suggestion that it could, or should impose restrictions as and when required.
Roughly five countries registered interest in our case, by the time of the US appeal on the WTO’s first ruling, much of that support disappeared. This support disappeared I believe, because the new administration had the WTO issue as a low priority issue and simply failed to shore up international support within an appropriate time-span to ensure that the WTO’s decision would be enforced.
This failure comes in light of the government’s 2005 Budget statement in which Internet gaming was announced as playing a significant factor in the regeneration and growth of the economy.
Seen, rightly so as a means of significant employment, and as a source of substantial income to the government, the WTO case, if handled properly, promised much for our economy and for the government.
I have contended in the past that one of the government’s principle mistakes in coming into power was the removal of senior officials without, in many cases, a proper handover. This failure ensured that persons walking into positions of head of department or even ministers of government were not adequately briefed on ongoing matters of state.
This failure meant that the government had little familiarity with the WTO issue for instance, outside of that which was available in the general media. Such a lack of understanding coupled with a tight deadline for the WTO appeal, meant that foreign affairs, then under the auspices of the Hon. Harold Lovell, did little to build international support behind our WTO efforts.
I do believe that though the US appears to be making no effort at complying with the WTO agreement, that all is not lost. Antigua & Barbuda, if it is to ensure that the WTO ruling stands, and that our economy benefits from this sector, must get its act together.
The support of Caricom nations in our ongoing dispute with the US is of little use other than as a gesture of solidarity and goodwill. We should remember that during the banana issue, where the US took the European Union (EU) to the WTO in regard to preferential tariffs to ACP (African Caribbean Pacific) banana producing countries, Caricom was ineffectual in swaying the US’ position.
Such a loss I believe demonstrated in a significant manner, that for the US, socio-economic issues of the ACP countries were of little importance when compared to their national interests.
The US in its economic policy clearly places its interests first and those of all others, a distant last.
In seeking to challenge our right to be a jurisdiction that licenses Internet gaming, the US has attempted to put up smoke screens by alleging all manner of ills.
The Financial Action Task Force (FATF) which has been conducting a review of Internet gaming since 1999 has found little cause or evidence of Internet gaming as having a significant vulnerability to money laundering.
This failure is due to the simple fact that money used to fund Internet gaming accounts are sent via banking instruments. In such instances, if an Internet gaming account is to be used for the purpose of money laundering then the funds have to first be placed in a US bank.
In moving forward, I would encourage the government to appreciate that if Internet gaming is to become anything more than but a minor player in our economy, Antigua & Barbuda must assume its rightful place as the birthplace of this successful industry.
In this regard, the directorate must become an entity that is capable of demonstrating international leadership in the division of standards for the effective regulation of the sector and for the establishment of e-cash systems required by all e-commerce companies. It must also be a strong advocate for the establishment of an environment that is positive to the development of the sector.
One of the reasons why Antigua & Barbuda was such a magnet for gaming was because of our offshore bank’s willingness to provide banking services to the industry. Many Internet gaming start-ups have become significant corporations with turnovers in excess of one billion US dollars.
We must understand that internet gaming is a global and internationally competitive industry. Upstart jurisdictions have already gained a significant lead in formulating a competitive environment that is attractive to e-commerce companies.
We unfortunately remain a jurisdiction in which companies may wish to license but not from which they operate. In such an instance our economy does not gain the benefits that it should if companies establish meaningful and significant premises.
Without a clear policy regarding the sector and without the government looking critically at success factors of the industry, Antigua & Barbuda may rightly deserve its position as a has-been jurisdiction.
If the industry’s needs are not addressed effectively we would be a country that missed a golden opportunity to be world technological leader, in the new information age.
source : Antigua Sun
