Confusion Reigns Over WTO Ruling In US-Antigua Gambling Dispute

by Amanda Banks, for LawAndTax-News.com, London

11 April 2005

There appears to be some confusion over the World Trade Organisation’s latest ruling on the dispute between the United States and Antigua and Barbuda over internet gaming.

The tiny Caribbean jurisdiction had argued that by seeking to legally prevent US citizens from accessing online gambling services such as those offered by many companies in Antigua and Barbuda, the government of the United States was unfairly putting a dampener on the country’s economy.

The 127-page decision released last week by the WTO’s Appellate Body partially reversed an earlier decision on the matter, but still concluded by announcing that:

“The Appellate Body recommends that the Dispute Settlement Body request the United States to bring its measures, found in this Report and in the Panel Report as modified by this Report to be inconsistent with the General Agreement on Trade in Services, into conformity with its obligations under that agreement.”

However, acting US Trade Representative, Peter Allgeier announced last Friday that:

“US restrictions on internet gambling can be maintained.”

The government of Antigua and Barbuda, meanwhile, stated that:

“This is a landmark victory for Antigua as the first, and smallest, WTO member to defeat the United States, the largest member, in this well-respected international trade court.”

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