USTR Notice on Compensation Talks With 8 Countries Due to WTO Loss on Internet Gambling Issue
The Office of the U.S. Trade Representative has issued a notice requesting comments on its negotiations for compensatory adjustments with eight World Trade Organization Members as a result of its May 4, 2007 notification to the WTO of the U.S. intent to modify its General Agreement on Trade in Services (GATS) commitment in order to exclude gambling and betting services.
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WTO On-line Gambling Dispute with Antigua and Barbuda Led to U.S. Move
In the course of the WTO dispute resolution proceeding originally filed by Antigua and Barbuda in 2003, the dispute panel ruled that the U.S. had a market access GATS commitment covering Internet gambling based outside of the U.S. USTR states that since gambling or betting services are generally prohibited or highly restricted in the U.S., the U.S. never intended to make a GATS commitment covering gambling.
(USTR sources state in order to avoid future WTO cases in this area, it has decided to explicitly exclude gambling and betting services from the category of ''other recreational services'' covered in the U.S. GATS commitments.)
U.S. May Have to Provide Compensation
Consistent with its GATS obligations, the U.S. has entered into consultation with the following WTO Members who have notified the U.S. that they consider that their benefits under GATS may be affected by the U.S. modification: Antigua and Barbuda, Australia, Canada, Costa Rica, the European Communities, India, Japan, and Macao. Such GATS negotiations provide for an initial three month period to consult on any necessary compensatory adjustment, and if unsuccessful, may result in arbitration.
(USTR sources believe that the compensation would likely involve concessions in other services and would take effect after the 3 month negotiating period.)
(See ITT's Online Archives or 06/05/07 news, 07060599 1, for previous BP summary of U.S. decision to withdraw its WTO gambling obligations.)
- written comments are due on or before noon, August 15, 2007
| Gloria Blue (procedural issues) | (202) 395-3475 |
| Thomas Fine (substantive issues) | (202) 395-6875 |
USTR notice (FR Pub 07/16/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-13734.pdf