The nation of Antigua is understandably chagrined that the United States government has not come into compliance with the World Trade Organization’s ruling on its Internet gaming case. I’m not a lawyer, so I can’t break all this down. But here’s the press release from Antigua’s PR firm:
The deadline passed today for the US to comply with a WTO ruling in favour of the Antiguan Online Gambling industry
as imposed by the World Trade Organisation in April 2005. As a result, nAntigua may now impose trade sanctions against the US in conjunction with the WTO agreements. Interestingly, while the US has ignored compliance issues in the Antigua WTO case, the US Trade Representative Rob Portman last week warned China of the consequences of non-compliance in a similar WTO trade dispute.The World Trade Organisation imposed the deadline for the US after an April 2005 ruling in favour of Antigua regarding US anti-gambling laws and calling for compliance by the United States with that ruling by the close of
business today.Under the rules of the multi-lateral dispute resolution system of the WTO-invoked by the United States as recently as last week against China-a country found to be acting inconsistently with its trade obligations is given a reasonable period of time to bring its laws or trade practices into conformity with the WTO ruling.
Although the WTO is a voluntary organisation, most members found to be in violation of their treaty obligations work hard in good faith towards timely compliance. In cases where prompt compliance has proven difficult, members usually engage with the prevailing party in the dispute with a view towards developing a mutually acceptable compromise.
“Unfortunately, the United States in this case has neither complied with the WTO decision nor worked with Antigua in good faith to find a reasonable solution,” said Dr. L. Errol Cort, Antigua and Barbuda’s Minister of Finance and the Economy. “Ironically,” noted Minister Cort, “I can find no better words in response to the United States inactivity than to paraphrase those of United States Trade Representative Rob Portman made in relation to China last week-‘As a mature trading partner, the United States should be held accountable for its actions and be required to live up to its responsibilities.'”
Antigua and Barbuda trade officials noted that the passing of the deadline without any attempt at compliance by the United States was “greatly disappointing” to their twin-island State. They also added that, like many developing countries, Antigua and Barbuda was encouraged to sign up to the WTO agreements as a way to achieving some diversity and prosperity for the 70,000 citizens out of the limited resources available to the tiny country. “While we realised the decision was going to present the Americans with some difficulties, we are surprised and disappointed by the apparently cavalier attitude of the USTR toward this very important issue to our country,” said Dr. John W. Ashe, Antigua and Barbuda’s Ambassador to the WTO.
Mark Mendel, the legal counsel in the dispute, announced that Antigua and Barbuda would pursue remedies against the United States under WTO rules that allow the beneficiary of a WTO dispute to impose trade sanctions against a non-compliant member. “We have already started the process,” said Mr. Mendel, “and barring immediate movement by the USTR on the issue, we will be making a filing with the WTO for suspension of certain trading concessions before the end of the month.” Mendel further observed that trade sanctions are not intended to be a substitute for compliance, and that the United States is still expected to bring its laws into compliance with the WTO rulings. “This is too important of an issue for Antigua and for the sanctity of the multi-lateral trade system of the WTO to let pass,” said Mendel. “Our efforts to bring the United States into compliance will continue unabated.”
That’s their side–I wonder if the US will respond?