Postponement of talks on an EU complaint that the U.S. Internet g...

Bush administration trade official. In December European online gambling operators formally complained to the European Commission that the U.S. Department of Justice violates international law by threatening and pressing criminal charges against foreign online gambling companies while letting U.S. operators flourish (WID Dec 21 p3). In May, the EC queried U.S. officials seeking information on the country’s practices, said the Safe and Secure Internet Gambling Initiative. The U.S. Trade Representative’s brief response was signed by a midlevel official, Matsukata said, apparently to keep the discussion at a lower level. Talks on the EC probe were set for July 28 but delayed at the last moment, probably until September, he told us. Many reasons could explain the delay, he said. Many USTR officials would have been attending that day’s WTO Doha trade negotiations, he said. The gambling dispute has a higher profile in the U.S., which may mean the USTR is taking it more seriously and needs time to prepare, he said. “We're not reading too much into the delay, but it’s likely to put back the timetable for conclusion of the EU’s investigation,” Remote Gambling Association CEO Clive Hawkswood told us. “As of today the two sides still seem a long way apart.” A WTO case filed by the EC will break new ground, said Matsukata. The case is aimed at Justice Department enforcement of the law, and no one wants a debate on the “very tricky area” of national sovereignty, he said. An impending change of U.S. administration is a “hindrance,” since there will be a gap in political oversight of the USTR and the Department of Justice, Hawkswood said. Longer term, he said, changes could be beneficial. Matsukata predicted movement on the issue before the election due to growing congressional interest, It’s unclear whether either major candidate would handle the situation differently from what has been done so far. But the matter isn’t likely to languish long after Congress returns, he said. A USTR spokeswoman said “there are no ‘discussions’ or ’talks'” between the EU and the U.S. “We conducted negotiations with the EU which resulted in a mutually acceptable outcome last December,” she said, but at the request of private parties, the EC is doing an internal examination of the matter. The USTR is providing facts to help the EC, she said.