The United States is now arguing that it is in compliance with the WTO
ruling that it should adjust its discriminatory trade regulations which
restrict the access by Antigua-based gaming companies to the US market.
The US is now claiming that Antigua & Barbuda has misunderstood
the WTO ruling. This is coming only a year after the WTO's Dispute
Settlement Body (DSB) ground-breaking decision in Antigua &
Barbuda's favour.
The US raised the hackles of the government of Antigua &
Barbuda and its supporters in Caricom earlier this month, when America
failed to amend legislation ahead of the 3 April compliance deadline
set by the DSB last year.
It did little to soothe relations with Antigua & Barbuda at
last week's meeting of the DSB when the US Ambassador to the WTO, Peter
Allgeier, stated "compliance with the recommendations and rulings of
the DSB in this dispute relates exclusively to the sole point of
whether the United States is now able to show that relevant US laws do
not discriminate against foreign suppliers of remote gambling on horse
racing. US laws do not discriminate, and we can show this."
Allegeir stated categorically "the United States is in compliance
with the recommendations and rulings of the DSB in this dispute."
He went on to state the US government is aware, based on public
statements, that Antigua & Barbuda's understanding of the findings
of the DSB in the dispute differs from America's.
"We believe that understanding is incorrect, and that Antigua's
misreading of the results of this dispute has fostered misperceptions
concerning their implications."
He reiterated the US' position that since the restrictive
legislation deals with "an issue of public morals and public order" it
falls under an exception under the General Agreement in Trade and
Services (GATS).
He further contended that the only outstanding issue recognised by
the DSB relates to horse racing, quoting a statement from the WTO's
Appellate Body that "the only inconsistency... stems from the fact that
the United States did not demonstrate that the prohibition embodied in
the measures at issue applies to both foreign and domestic suppliers of
remote gambling services, notwithstanding the [Interstate Horseracing
Act]...." and a ruling from the DSB that the US had not "shown, in the
light of the Interstate Horseracing Act" the non-discriminatory
application of the relevant measures.
"Notwithstanding any assertions to the contrary, this question concerning horse racing is the only issue," Allgeier said.
He concluded his statement on the dispute with Antigua &
Barbuda by stating that US criminal statutes prohibit the interstate
transmission of bets or wagers, including wagers on horse races and
that the US Department of Justice is currently undertaking a civil
investigation relating to a potential violation of law regarding this
activity.
"We hope that this explanation puts to rest any lingering
misperceptions of the rulings and recommendations that the DSB in fact
adopted in this dispute," he said.
In response, Antigua & Barbuda's Ambassador to the WTO Dr. John
Ashe took issue with the US' suggestion that its compliance "is in fact
no different to the position which was raised during the course of the
proceedings and found unpersuasive by both the panel and the Appellate
Body."
The next step in the dispute process will be for Antigua & Barbuda to invoke an Article 21.5 compliance panel.
This three member WTO panel will conduct an evaluation of the
relevant US legislation and examine the extent to which they have been
brought into compliance.
This panel is usually called on to examine legislative changes for
compliance. In this case, the US has not made recommended changes, but
has essentially claimed that existing laws already comply with WTO
standards and the ruling of the DSB.
ANTIGUA SUN
