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A Brussels think-tank has accused the US government of reneging on commitments made to the World Trade Organisation (WTO) over internet gaming.
Panellists at a trade forum levelled harsh criticism at the US, focusing on a burgeoning trade clash between the US and Europe over internet gaming.
The forum believes that the US could be liable for up to US$100 billion in trade concessions to European industries after placing illegal discriminatory trade restrictions on European gaming operators.
The disputed concessions arise from Antigua’s victory earlier this year when the WTO ruled that the US violated its treaty obligations by excluding online Antiguan gaming operators, while allowing domestic operators to offer various forms of online gaming.
Instead of complying with the ruling, the Bush administration withdrew the sizeable gambling industry from its free trade commitments.
As a result, all 151 WTO members are considering seeking compensation for the withdrawal equal to the size of the entire US land-based and online gaming market, estimated at nearly US$100 billion.
The European Union, along with India and five other countries, has filed notice that it intends to seek compensation.
“The US decision is a major threat to a rules-based international trading system,” said Nao Matsukata, former director of policy planning for the Office of the US Trade Representative.
“If more countries follow the US lead and do the same thing, the entire WTO system could implode and that would be extremely dangerous for US economic interests and for free trade generally.
“Part of what makes the US such a formidable opponent in international negotiations is its credibility. That credibility is now at stake for the US government not just in the trade area but in foreign relations generally.”
Lode Van Den Hende, a trade lawyer at Herbert Smith in Brussels, criticised the US for prosecuting foreign online gaming companies while letting domestic online gaming interests operate with impunity.
“This is absolute discrimination against foreign operators that the WTO has found to be illegal,” he said.
“It is exactly the kind of practice that the WTO was set up to eliminate, and now the US is violating this very basic principle that it fought hard to put in place at the inception of the organisation.”
Thats cool!
But who sets these rules and fines? I mean technically America shuld do whatever they want to in theire own country, right? Who is EU to say that this is wrong and give them a $100 billion fine?
Anyways, I am happy for this news… I hope America will legalize it again…
The World Trade Organization (WTO) sets these rules for all member countries.
If you read the article carefully, the US ran afoul of the rules by banning online gambling provided by other nations and allowed it’s own (lotteries and horseracing) companies to run online gambling establishments.
This is just excellent news!!! Thanks for the great find Dom
I just found it here, lol! Splinterfree put it here.
@bonustreak 141779 wrote:
This is just excellent news!!! Thanks for the great find Dom
Great news, unless the idiot administration decides to bite the bullet and pay the imposed fine. Who do U think will be paying for it then ???
Nothing would surprise me with this administration. Expect more twists, turns, and convoluted logic, as they attempt to weasle out of (or ignore) this potential mandate. Stalling for another 15 months, to hand the problem over to the next administration, is my vote, on how this will “get resolved”.
splinterfree,
thank you for this article, i copied it and put it on my website with your link…i hope this is ok?
Please let me know.
thanks
patThanks for this article. Definitely looks as if the pressure is increasing on the US government to end this attempt at prohibition sooner rather than later.
Good News ,cool !
I have been saying that it is a wonder no one has raised this in the free trade arena. At last it looks like a serious challenge is on the way!:santa2:
Brioz
This is great news. Nice find. Let’s hope that it happens soon than later!
