WTO COMPENSATION DECISION FURTHER DELAYED

26 October 2007

December 14 is new deadline


The United States has secured a further delay in making decisions regarding compensation to fellow World Trade Organisation members impacted by its unilateral withdrawal of treaty obligations concerning gambling.

Representatives of Antigua, the European Union and five other nations expected negotiations to wrap up this week, but the Reuters news agency quotes US Trade Representative spokesperson Gretchen Hamel as saying: “In order to provide all parties with sufficient time to reach a successful resolution, the United States and the claimants have jointly agreed that these negotiations should be extended until December 14.”

Hamel revealed that each negotiation is proceeding at its own pace, and some are quite advanced. "However, we have agreed to extend the negotiation period for all claimants," she said.

Although full details are not yet known on the amount of compensation claimed, there has been media speculation that EU claims could run into billions of dollars following the commercial damage caused to European companies which were obliged to leave the US market in the wake of the Unlawful Internet Gambling Enforcement Act.

Antigua has publicised its demand that the US pay up $3.4 billion in the form of suspended copyright laws, a proposal on which the US has sugggested that around $500 000 would be more appropriate, which the islanders have rejected.

Reuters notes that Hamel suggested that Antigua seems to be the only country that is vigorously pursuing its claim, implying that EU representatives are not as committed. Should agreement on compensation not be achieved, the issue will fall before WTO arbitration. Hamel suggested that there was a strong possibility that the other six nations with claims, including the EU, will settle upon what she termed "a reasonable solution."

STOP PRESS:
Talks between US and EU officials have not delivered a settlement yet, though the US must offer compensation under its World Trade Organisation obligations, or could face sanctions.

News agency reports as we went to press suggested that EU trade commissioner Peter Mandelson is due in Washington in early November, and is expected to push for substantial compensation for the loss of business to European firms. Reuters reported that online gambling companies are pressuring Mandelson to tell Congress to overturn the UIGEA, or face EU retribution.

Online Casino News courtesy of InfoPowa