πŸ€‘ Case Summary: WTO Internet Gambling Case - Public Citizen

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WTO Dispute Settlement: One-Page Case Summaries Measure at issue: Various US measures relating to gambling and betting services.


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In , Antigua and Barbuda brought a claim against the United States for blocking Internet gambling services. 49 When the US responded that it did not allow.


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The United States' efforts to prosecute foreign-based suppliers of online gambling services prompted Antigua to file a complaint in the WTO, in.


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Now Antigua will formally request negotiations with the US trade office. At stake is Antigua's authorisation by the WTO panel to recover its.


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The WTO Internet Gambling Dispute and EU-US Trade Policy

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WTO Dispute Settlement: One-Page Case Summaries Measure at issue: Various US measures relating to gambling and betting services.


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United States only needs to clarify one narrow issue concerning Internet gambling on horse racing); Antigua Wins WTO Gaming Ruling, at http://​apple-arena.ru


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WTO Appellate Body Dispute Controversy, Know all about it, Current Affairs 2019

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In , Antigua and Barbuda brought a claim against the United States for blocking Internet gambling services. 49 When the US responded that it did not allow.


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Now Antigua will formally request negotiations with the US trade office. At stake is Antigua's authorisation by the WTO panel to recover its.


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Now Antigua will formally request negotiations with the US trade office. At stake is Antigua's authorisation by the WTO panel to recover its.


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According to Antigua, any sanctions it imposed would not affect the United States much at all, while at the same time causing great harm to Antigua's economy. He is co-founder of WorldTradeLaw. Skip to main content. This figure was based on a consultant's report that estimated Antigua's lost gambling revenues as a result of the U. But regardless of this new complaint, the U. In a sense, the arbitration decision was a win for Antigua, as it has been given the right to retaliate against the United States, and, importantly, this right is in the form that it wanted, cross-retaliation under the TRIPS Agreement. However, the amount awarded was quite small, and thus any sanctions imposed may not have a great impact. On appeal, the Appellate Body narrowed this finding of violation to the federal laws only. Upon the conviction of a U. The basis for this argument was that Antigua's economy was not big enough to allow for effective sanctions in the area of trade in services. However, while various government actors in the United States considered actions to be taken in this regard, ultimately nothing was done. April 08, Introduction The WTO Gambling dispute between Antigua and the United States has evolved from what some considered to be an obscure, long-shot complaint by one of the smallest countries in the world into a primer on some of the most important and controversial substantive and procedural issues in WTO law. The Original Complaint Upon the conviction of a U.{/INSERTKEYS}{/PARAGRAPH} Having been found in violation, the United States was required to bring the laws at issue into conformity with the GATS. The Gambling dispute has worked its way through many stages, and might now be winding its way towards the end. The United States disagreed with the retaliation amount proposed by Antigua. For these reasons, it is likely that the United States will challenge whatever actions Antigua might take in this regard. On May 4, , after circulation of the compliance panel report but before its adoption, the United States announced that it would withdraw the commitments it had made on gambling services, [6] pursuant to the GATS Article XXI procedures for the "Modification of Schedules. Instead, in the rest of the decision, he worked with the other arbitrators in calculating this amount based on their approach and in addressing the other issues that arose. In this regard, the dissenter explained that the overall conclusion of the Appellate Body was that the measures at issue , rather than simply the discriminatory treatment provided in respect of horseracing, were not justified under Article XIV. However, although the dissenter did not agree with the legal interpretation reached by the majority on this issue, he did not attempt to determine an amount of nullification or impairment based on his own approach. International law topics include trade law, economic integration law, private law, business regulation, financial law, tax law, intellectual property law and the role of law in development. Also, there may be legal restrictions imposed on the process of retaliation, such as limiting the violations of intellectual property rights to the Antiguan market and making sure that only intellectual property that is completely of U. Two arbitrators agreed with the United States that the appropriate basis for assessing nullification or impairment was a "counterfactual" under which the United States "would provide unrestricted market access for remote gambling and betting services only in respect of horseracing gambling and betting. With regard to Article XIV a , the Appellate Body reversed the finding, concluding that the three federal laws were, in fact, necessary. The approach envisioned by the United States was to modify or clarify the relationship between the federal laws challenged by Antigua and the Interstate Horseracing Act. Such an arbitration would be the first of its kind, and thus there is no direct guidance for its conduct. Suspension of intellectual property protection, by contrast, could, in theory, provide an effective remedy, as the United States is one of the leading producers of intellectual property, in industries such as entertainment, software and pharmaceuticals. As explained below, both of these controversial developments are well under way and are likely to unfold in the coming months. In a decision circulated on December 21, , [4] the arbitrators hearing the case split on the key issue of how to determine the amount of nullification or impairment, with one of the arbitrators making a rare dissent. First, as a result of the compliance Panel finding, upon adoption of the panel report there was no appeal on May 22, , Antigua could now pursue trade retaliation under Dispute Settlement Understanding DSU Article These issues are discussed in the next two sections. While technically within the rules, the U. It also found that these laws were not justified under the GATS Article XIV a defense for measures "necessary to protect public morals or to maintain public order," on the grounds that the U. The Panel found that a number of the U. In the view of the United States, because the Article XIV defense failed solely on the basis of this Act, a modification or clarification to show that there was no exemption from the relevant laws for gambling on horseracing would mean that the United States now satisfied the terms of Article XIV, and thus any violation of Article XVI would be justified. Official documentation of this process has not been made publicly available, but according to press reports, in response to the U. Importantly, Antigua argued that it should be able to "cross-retaliate" i. In a report issued on March 30, , the Panel rejected this view. This International Economic Law ASIL Insight offers a general overview of the dispute, explaining each stage and highlighting the key issues, with a focus on the most recent stages: 1 The request by Antigua for suspension of concessions and other obligations and the resulting ruling, and 2 the U. This procedure has only been invoked one other time, in a situation involving re-negotiation of EU GATS commitments in relation to the enlargement of the EU. In the compliance proceeding, the United States did not argue that its measures had been brought into compliance, but rather contended that it should have the opportunity to re-argue its Article XIV defense. Article XIV defense was limited to certain statutory provisions related to remote gambling on horse-racing, that figure should be reduced in order to take into account gambling on horse-racing only. To date, Antigua has not requested authorization from the DSB to retaliate. The standard terms of reference for Article XXI arbitrations provide that the arbitrator is "to find a resulting balance of rights and obligations which maintains a general level of mutually advantageous commitments not less favourable to trade than that provided for in Schedules of specific commitments prior to the negotiations. {PARAGRAPH}{INSERTKEYS}The WTO Gambling dispute between Antigua and the United States has evolved from what some considered to be an obscure, long-shot complaint by one of the smallest countries in the world into a primer on some of the most important and controversial substantive and procedural issues in WTO law. However, the ultimate resolution is still uncertain. About the International Economic Law Interest Group The International Economic Law Interest Group promotes academic interest, discussion, research and publication on subjects broadly related to the transnational movement and regulation of goods, services, persons and capital. International trade obligations can be, and have been, effective in changing Members' laws, but given the nature of the rules in this area in particular the possibility of withdrawal of commitments , and the sensitivity of the policy issues related to online gambling, it does not appear that WTO rules can force a change in the current legal situation. Veroneau Regarding U. However, it has recently emphasized that it is serious about moving forward with retaliation. With regard to the withdrawal of GATS commitments, it appears that the United States and Antigua are likely headed for arbitration on this matter as well. Then, the United States argued, because the basis of the rejection of the U. Ultimately, it may be that resolution of the dispute will not occur until a GATS Article XXI arbitration body establishes a new "balance of rights and obligations," through a determination of the appropriate amount and type of compensation the United States must provide to Antigua. Having found that the measures fell within Article XIV a , the Appellate Body then considered whether they met the terms of the Article XIV chapeau, which requires that measures not be "applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on trade in services. See footnote 2 above. This compliance report paved the way for the current stage of the dispute, involving the following two issues. Over the ensuing months, the United States was able to reach settlements with a number of these Members, [8] but not with Antigua.