The new government of Antigua announced that it is about to reach ‘a significant concession’ towards the long lasting dispute that the country has with the United States. For almost ten years now, Antigua has been appealing at the World Trade Organization for the unfair treatment from the side of the United States concerning the online gambling industry.
A week ago, on the 29th of August, the Dispute Settlement Body of the WTO had a meeting where Antiguan representatives of PM Gaston Browne offered another legitimate proposal in order to find a reasonable solution to the trade dispute.
Back in 2003, Antigua argued that the United States did not meet their international trade obligations labeling the US politics as prohibitionist, and unfairly focusing against the Antiguan gambling industry. The United States claimed that their actions were taken to protect its own citizens from the negative effects of online gambling.
The WTO found that reasoning unjust, as the US has licensed its own states providing online deposit wagering for local horse racing events, and therefore their claim is illogical.
In 2007, the WTO gave permission to Antigua to collect $21 million in yearly damages. Yet, they still have not received any payment. The US Trade Representative filed a number of appeals, but the World Trade Organization stayed on Antigua’s side.
Furthermore, the WTO offered a ‘royalty-free download of US intellectual property’ proposition, with which Antigua could gather its $150+ million owed by the US. This extreme plan was put on hold by Antiguan government with the hope that the USTR will change their minds, however, such a turnaround is yet to be seen.
At the last Friday’s meeting of the DSB, Antigua explained that the amendment made to the former proposals offers to gather just a fraction of what the U.S. owes to the Antiguan economy due to their continuous failure to abide by the international trade obligations of the WTO.
In their answer to the Antiguan claims, the USTR stated they have offered various suggestions to find a solution to the problem. They also said that the behavior of Antigua is offensive, as they decline to accept any of the offers made by the US representatives.
Colin Murdoch, Antigua’s ambassador, pointed to the small-scale offers that the U.S. is trying to slip onto the table and settle the matter with minimal damages. It looks like the only possible solution at the moment is the recently revealed offer by the Antiguan government, however, the USTR abides by its policy of not commenting on negotiations, which are still under active dialogue. The outcomes of the negotiations are to be revealed in the near future.
