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Recent WTO rulings in favor of Antigua and Barbuda gave the US until May 22, 2007 to appeal. That date has since passed and the US has declined their option to appeal the ruling, though they have also not complied with the ruling, which would have them create unbiased legislation; either allowing outside competition to provide online gambling services to US players, or cease remote betting operations within their borders.
As reported last week, instead of appealing the decision or complying with the ruling, the US has opted for a third position. They are attempting to clarify commitments signed over a decade ago in 1995, claiming that the inclusion of “remote betting” was an oversight. The US has stated they never intended for it to be an option, but simply forgot the exclude it in their trade agreement with the WTO.
If the WTO allows the US to clarify their commitments, the outcome could be disastrous, not just for the US government. Before the clarification to disallow remote betting can be completed, every member of the WTO who has a stake in the online gambling industry will have the option to file a claim against the US for damages. With 150 countries as members, this could easily climb into the multi-billions, which the US will have to pay in compensation for each countries losses.
This action would also give other members of the WTO the right to sanction US producers. If this were to happen, the outcome would be detrimental to the US economy.
To top it all off, if the US gets away with this action to clarify commitments, others countries, like China, would be able to weasel their way out of future WTO rulings by simply revising their trade agreements, as the US is attempting now.
Altogether, the repercussions from the US government's unorthodox tactics could be astronomical. Many are hoping the WTO will realize the potential issues being created and reject the submission to revise the US trade agreement. We'll keep our readers updated as news occurs. For up to date reports on current UIGEA / IGREA events, visit: http://www.repealUIGEA.com |
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