https://insidetrade.com/: Following recent criticism from Antigua and Barbuda and others at the World Trade Organization for not complying with a 20-year-old dispute ruling on online gambling, the U.S. this week countered that despite Washington’s best efforts, it was the Caribbean country making it hard to resolve the case.
Antigua and Barbuda, a small Caribbean island nation, has raised concerns at the past two Dispute Settlement Body meetings that the U.S. has never fully complied with a dispute brought by the country in 2003 over U.S. restrictions on cross-border gambling services. During the most recent meeting, on Monday, the U.S. responded by saying it has gone to great lengths to attempt to resolve the issue with Antigua and Barbuda but accused the country of rejecting all of Washington’s efforts.
“The United States is disappointed that Antigua and Barbuda continues to characterize the United States as not making any attempt to resolve the dispute. Very much to the contrary, the United States has repeatedly tried to resolve this dispute in a way that would bring benefits to Antigua and Barbuda’s economy and to its citizens,” the U.S. said, according to a copy of its remarks. “Time and again Antigua has rejected these efforts, favoring rhetoric over practical solutions.”
Antigua argued when it launched the dispute that the U.S. measures violated the General Agreement on Trade in Services. A dispute panel in late 2004 and the Appellate Body in 2005 largely agreed and recommended the U.S. bring its measures into compliance. Following a compliance panel that found Washington had not done so, St. John’s in 2007 was authorized by the WTO to retaliate against the U.S.
Given the significant disparity in economic size and power of the two parties, the WTO decision allows Antigua to suspend up to $21 million annually in intellectual property concessions to the U.S., a type of retaliation that is rarely awarded and has never been implemented. The country has been hesitant to use its retaliation due to its unusual nature as well as “threatening” statements made by the U.S. delegation during DSB meetings at the time, it said last month.
“Having exhausted all avenues to a settlement, it appears that Antigua and Barbuda is left only with the nuclear option of IP suspension,” it said on Monday, according to a copy of its remarks. “However, taking such a punitive course would likely come at significant economic and political costs to the Government of Antigua & Barbuda.”
The dispute “is regarded as a test case for those WTO Members seeking to determine whether the [Dispute Settlement Understanding] can deliver practical and timely benefits for small and vulnerable economies. For the DSB, the delegation of Antigua and Barbuda would like to believe that this protracted delay is extremely worrisome,” the country added.
The U.S. did not speak substantively to the issue last month but on Monday outlined what it considered to be Washington’s many attempts to resolve the dispute.
The U.S. noted that it never intended to include gambling services in its schedule of concessions and that such services are not explicitly in its schedule. “Nevertheless, the United States was found in breach of its commitment to grant market access under the GATS Schedule entry of ‘other recreational services (except sporting),’” it said.
Since then, the U.S. has made “consistent, good-faith efforts” to settle the dispute, Washington said, citing bilateral talks in 2008, 2013 and 2016 on a settlement that St. John’s ultimately rejected.
Additionally, the U.S. said, it has attempted to modify its schedule under GATS Article XXI to remove gambling services.
“[T]he United States prepared a generous package of services concessions as compensation for removing internet gambling from the U.S. Schedule. The United States negotiated under GATS XXI with Antigua and Barbuda, Australia, Canada, Costa Rica, the EU, India, Japan, and Macao,” the U.S. said.
“Antigua and Barbuda was and remains the only Member to block the United States from completing the Article XXI process,” it added.
“Unfortunately, for each new settlement offer, Antigua and Barbuda ultimately rebuked these good faith efforts to find a solution and responded by demanding tens of millions and then hundreds of millions of U.S. dollars in cash payments,” Washington said. “There is no basis for such an exorbitant request in the arbitrator’s decision or the Dispute Settlement Understanding.”
Both Antigua and the U.S. said they were willing to work together to find a solution, each calling on the other to do better in the future. Antigua and Barbuda said it hopes to see progress in 2024.
Several developing countries also took to the floor to support Antigua and Barbuda on Monday, according to a Geneva-based trade official familiar with the meeting. They included St. Vincent and the Grenadines, speaking for the African, Caribbean and Pacific Group; Nigeria, speaking for the African Group; Bangladesh; India; and South Africa.
“This lack of resolution, in particular the non-compliance of the world’s largest economy, and for many decades, its largest trading nation, in a matter involving one of the smallest WTO Members, undermines the rules-based system of adjudication,” St. Vincent argued, according to a copy of its remarks. “Essentially, when the most powerful shirk their responsibilities in upholding some of the basic tenets of multilateralism, the implications are systemic.” — Hannah Monicken ([email protected])
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I am demanding for the US to not give any cash to this administration. It will be wasted and stolen is my belief. All the Antiguan politicians want is money that I promise you will not have any substantial impact on the average man.
Just like CIP, it is the wealthy making Money from it selling one house 4 times so the investor can meet the investment amount requirement.
I honestly think US tourist should boycott Antigua but I would be against it because the average people will suffer.
These Antigua Government cares nothing for anyone but use you to get votes.
You sound like a spoiled rotten entitled child. You putting out this stupid comment because you can get a damn gun license. The US owes Antigua and Barbuda and its about time for them to pay up.
@Chupes, I know who this one person who they said a stick was broken in his behind by someone that je seems to think is me. A local saying I have never used until today.
That’s your way of helping? U sounds like an intellectual dunce .
When Gaston Browne eventually disappears from office, watch how quick this gambling monetary issue is resolved.
CAN’T WAIT…
@Brixtonian…. You are a proper fool to believe that a change of government will make the US pay. This case has been going on since Lester Bird was PM and UPP came to government and got zilch. It has NOTHING to do with any particular administration. The USA lost the case at the WTO and are embarrassed by it, and they are using their might and simply refusing to pay what the WTO awarded to Antigua. So please remove your blinders and understand what is happening here.
Foolish arsehole you are!
My point being @ Carter, is that if we had a respected Prime Minister/leader on the global stage, then the US would have paid up, but our leaders in Antigua are to ‘lickie-lickie”, and always kowtow to the US and UK.
That’s why these former colonialists and slave owners continue to treat us with contempt.
YOU FOOLISH ARSEHOLE CARTER!!!
@Brixtonian December 21, 2023 At 1:28 pm
You know why you are saying that. Because the UPP is so inept they would accept any offer from the USA. They are like taking candy from a kid. But when you deal with people like Gaston Browne and our experience ABLP politicians, you cannot do that. You are the faced with people that have courage to stand up for what is right for their country. The USA has made several ridiculous offers which this government has seen as an insult. But it is people like you and the UPP who would sell out Antigua and Barbuda for a few thousand dollars. Just like how the whiteman fooled the Indians when they came to America and gave them whisky and a mirror for Land.
Sidey, in your heart you also know that when Antigua & Barbuda puts a RESPECTED Caribbean leader in place (like the Honourable Mia Mottley from Barbados 🇧🇧), then business and economic doors will open – stay open.
Gassssston Browne can only do business with countries that others won’t touch!
How disciples like you and Carter cannot see this, just goes to show that you’ll put Gaston before country.
SHAME ON BOTH OF YOU …
I thought that these guys were the best negotiators in theworld, however, i know that the money-hawk is not going to relent because he sees big bucks. The U.S. want to make a COMPASSIONATE offer much like the action he’s taking against the former LIAT Workers. Who feels it knows it.
@Rovi December 21, 2023 At 4:11 pm
They are tough negotiatiors. You do not fool them. Look how the UPP was willing to buy WIO for US$80million and when Gaston Browne came to office he bid them down to US$30Million. Look at how Sandals fooled the UPP and was able to keep 65% of our ABST and when gaston found out about it he said, NO pay up the entire 100%. It is illegal to hold on to our ABST. And Sandals made threats to close down and this government stood firm and Sandals is now paying in 100% of our ABST. Look at how Scotia Bank unilaterally decided to sell its Antigua Branch to Republic Bank. Our Prime Minister stood up and said no way, you first offer it up to Antigua banks and what happened? ECAB bought Scotia and RBC saw what was coming and they sold to ACB. And now are local banks are suddenly very liquid and have the capital. Nothing what they did to grow their assets but what this government did in their policy. And we have many more of these examples to show that this government is the most compitent Antigua and Barbuda has ever seen. They are not easy push over. Remember the UPP negotiated a deal with the Credit Swiss Bank for the Airport Loan at 13% and then this government had to put pressure on them to bring it down to 9%.
America is flexing their muscles against small Antigua and Barbuda, but they are meeting stiff push back from compitent Antiguan negotiators who are not willing to bend over backwards for them and accept any small token. And the thing is Money is not the issue for the USA. It is the principle that this small Island State can give the mighty USA such a beating in the public sphere. They are really been made to look foolish and bullish. But they do not care. They rather give some European country billions in grants then to give us the US$200million that was awarded to us.
The WTO,like the United Nations could not and cannot tell this country what to do.THE WTO HAS NO POWER.By the way,it was not a cash judgment.Go back and read that judgment.
A money he want you know so he nar go tek anything else.
@my way of helping December 21, 2023 At 11:57 am
You are so ill informed, that you do not even know anything about the compensation, but you run your mouth.
The USA can easily give us goods and services worth in the amount. They can for example finance the purchase of a RO Plant. They can help fix our road. We cannot tell them that all we want is money. But they refuse on the value. We have calculated the lost of revenue to be US$200million. They think it is more US$20milion. So we are so far apart and they refuse to come anywhere close to our valuation. And the WTO has agreed on our valuation. We are allowed to use measures like taking US Copy Rights, but you know once you do that you will be boycotted and no one would be able to use any computer software from Microsoft or go to the cinema to watch any new movie. It will be forbidding to be aired in Antigua and Barbuda.
I keep saying you guys are so inept and always want to criticize. Go educate yourself and then come again.
@ From the sideline,
I have no clue what you are speaking off. My way of helping is to demand for the US to withhold any damages until a government is in place that I am confident will allow the average man and woman to benefit from such award.
I truly do not think your ABLP help folks. I remember recently being told, I cannot help you being told to me by your ABLP. Just like UPP told me, I cannot help you either in your financing assistance you are requesting.
I am not loyal to ABLP and UPP, I am loyal to justice and fairness.
I have stated my opinion and will continue to do so.
.
There are a lot of other more useful ppbusinesses that could be done by persons online and assist development in this region e.g. there could be an online marketplace selling goods, music, art etc. from this region. Why not ask the U.S. for technical advisory support, funding etc. to assist the tech sector in this region, supporting new startups etc. Alternatively, Antigua and other small Caribbean countries tend to be excluded from or granted last access to international opportunities based in the U.S. e.g. opening and selling from an Amazon account using a local bank account. Can’t even watch a movie if you don’t live in a bigger country. Perhaps a deal could be made that small Caribbean countries be granted by law or trade agreement early access to membership in online services alongside the bigger neighbours such as Canada.
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