ANTIGUA CLAIMS VICTORY IN W.T.O. DISPUTE WITH U.S.

2 March 2007

But just a week ago the islanders were complaining about the US breaking silence on the verdict

Antigua and Barbuda government officials seemed to forget this week that very recently they were complaining about the United States prematurely commenting on the decision of the World Trade Organisation in their dispute over online gambling.

The islanders complained on grounds that the WTO findings on the row are only due for release at the end of March, and the US should therefore have remained silent until then. Despite this, the Antigua Sun carried an interview with government officials very clearly breaking silence themselves on the issue.

Minister of Finance and the Economy Dr. Errol Cort told the newspaper that the outcome was clearly in Antigua & Barbuda’s favour.

“We are very pleased with the outcome of this round,” said Dr. Cort. “… The report is absolutely clear. The report certainly goes a long way in terms of clarifying issues that hitherto may have been somewhat fuzzy and I think once the report is made public, all would agree that this is really a great victory for Antigua & Barbuda.”

Earlier statements by Gretchen Hamel, a spokesperson for the Office of the U.S. Trade Representative had indicated that the WTO had ruled against the US contention that it was in compliance with its international trade agreements, but the Antigua Sun statement was the first response to come from local officials.

Antigua & Barbuda’s attorney at the WTO Mark Mendel said the decision was an indication that an end to the WTO process was in sight.

“The WTO is a very complex, very difficult organisation to wind your way through, but we’re almost at the end of the day at the WTO.

"The US may appeal this adverse decision if they’d like to, but I don’t see how it’s possible that it would be reversed and the appellate procedure would take only about three months. After that point in time, they really have run out of options,” he said.

Mendel explained that the government could choose to levy trade sanctions against the US if it fails to comply with the WTO rulings, necessitating a further hearing. That decision has not yet been made, but is widely thought to be unlikely since Antigua & Barbuda is economically dependent on US imports.

The attorney said Antigua had, however, been seeking to work with other developing countries, including China and Brazil, to exert pressure on the US to respect and comply with the WTO’s rulings.

In addition, Antigua & Barbuda officials are considering another visit to Washington, like the one undertaken last September, to lobby the US Congress.

Mendel said he expected greater success on a second such mission, since Congress was now controlled by the Democrats and elements which have been sympathetic to Caribbean interests in the past.

In addition to a continued effort to educate members of Congress on the trade issues involved, the government will also propose related legislation to Congress which it hopes to see implemented in coming months.

Mendel added that the latest WTO ruling gives the US “no place to hide and no way to try to explain themselves out of this.” In light of this, he said he was optimistic that Antigua & Barbuda would be able to get positive change in Washington.

Probably related to the Antiguan strategy on achieving recognition as a credible online gambling licensing jurisdiction, the government's Department of Gaming in the Financial Services Regulatory Commission (FSRC) said in a seperate announcement that it is preparing to overhaul its regulatory system.

Director of Gaming Kaye McDonald said the jurisdiction will be focusing on tightening control of the Internet gambling industry.

In an apparent reference to moves that may drive some of its existing online gambling operators away, MacDonald said: “For us in the Division of Gaming, it’s not about having a multitude of licencees in the jurisdiction. We’re looking for premium operators so, therefore, you may see that there might be a downward trend, because as we try to ensure that we have operators that will operate within our laws and regulations and best practices and good corporate governance, we certainly would take remedial action.”

Part of the motivation for the re-evaluation of the nation’s gaming regulations is linked to Antigua & Barbuda’s effort to bring itself into compliance with UK criteria so that it can make representation as a jurisdiction offering remote gaming, to be recognised as a European Economic Area.

This will make Antigua & Barbuda an approved jurisdiction, allowing its remote gambling licencees to advertise and build its brand in the UK without actually being licenced in the UK.

McDonald said this was important as operators seek to diversify into the European market, in light of the ongoing restrictions on Internet gambling in the United States.

“In looking at our Internet gaming and Internet wagering regulations, we are poised to ascend to that list. However, we recognise that there are some challenges; there are inefficiencies,” she said.

She explained that with the assistance of Antigua & Barbuda’s WTO Attorney Mark Mendel and other consultants, the Directorate of Gaming will be conducting an extensive review of the existing regulations.

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