TRY MASSAGE IN WTO DISPUTE, ADVISES CARIBBEAN BODY

16 March 2007

No, not the physical kind - just some good old fashioned international political pressure

Back on the subject of the World Trade Organisation dispute between Antigua and the USA this week, the Antigua Sun reports on a recommendation from the Communications Division of the Caribbean Regional Negotiating Machinery organisation that "political massaging” will be necessary to motivate US compliance with the WTO findings, which fall in favour of the islanders.

The political massaging comment came in acknowledgement that Antigua & Barbuda is unlikely to be able to pressure the US into compliance with a WTO ruling that its laws create trade restrictions in violation of international agreements.

“Not only is Antigua & Barbuda as an open economy highly dependent upon trade with the US but the imposition of sanctions against the US would have de minimis effect on a large economy like the US,” it pointed out.

This position has been acknowledged by Antigua & Barbuda’s gaming authorities, the Sun reports, adding that the government has already committed to some of the massaging techniques that have been suggested.

“These include closer collaboration with sympathetic countries which have greater trade and negotiation resources and more political clout, such as Brazil and China.

“It is apparent that despite the ruling, the US has continued to flaunt the rules of international trade in this context," the recommendation says. "The rule of international law as it relates to trade may be applicable to every state but there are limitations to the extent that these rules can effect fairness in the interaction between states.

“As the persistence of the behaviour of the US implies, the rules of international trade may have little effect on the dynamics of power that still characterise the interactions of sovereign states. A philosophical question is presented here – To what extent can international law really govern the behaviour of sovereign states?”.

Despite these conclusions, the CRNM is cautiously optimistic that the US will comply in light of other powerful incentives, such as the resolve to have peaceful international relations and comply with international law as well as the need to show commitment to the principles of the WTO during the recently resumed Doha Round of international trade negotiations.

A less pressing incentive is the likelihood that US non-compliance is likely to impact bilateral US-Caricom relations.

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