US IGNORES COMPLIANCE DEADLINE IN ANTIGUA GAMBLING CASE
ANTIGUA MAY NOW ACT TO IMPOSE TRADE SANCTIONS ON THE US
Geneva, Switzerland. April 3, 2006: 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,
Antigua 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."
ANTIGUA MAY NOW ACT TO IMPOSE TRADE SANCTIONS ON THE US
Geneva, Switzerland. April 3, 2006: 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,
Antigua 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."
