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| Fifth Column |
| US faces US$100 billion fine for web gambling ban |
| 2007-10-12 |
| A Brussels think-tank has accused the US government of reneging on commitments made to the World Trade Organisation (WTO) over internet gaming. Panellists at a trade forum levelled harsh criticism at the US, focusing on a burgeoning trade clash between the US and Europe over internet gaming. The forum believes that the US could be liable for up to US$100 billion in trade concessions to European industries after placing illegal discriminatory trade restrictions on European gaming operators. The disputed concessions arise from Antigua's victory earlier this year when the WTO ruled that the US violated its treaty obligations by excluding online Antiguan gaming operators, while allowing domestic operators to offer various forms of online gaming. Instead of complying with the ruling, the Bush administration withdrew the sizeable gambling industry from its free trade commitments. As a result, all 151 WTO members are considering seeking compensation for the withdrawal equal to the size of the entire US land-based and online gaming market, estimated at nearly US$100 billion. The European Union, along with India and five other countries, has filed notice that it intends to seek compensation. "The US decision is a major threat to a rules-based international trading system," said Nao Matsukata, former director of policy planning for the Office of the US Trade Representative. "If more countries follow the US lead and do the same thing, the entire WTO system could implode and that would be extremely dangerous for US economic interests and for free trade generally. "Part of what makes the US such a formidable opponent in international negotiations is its credibility. That credibility is now at stake for the US government not just in the trade area but in foreign relations generally." Lode Van Den Hende, a trade lawyer at Herbert Smith in Brussels, criticised the US for prosecuting foreign online gaming companies while letting domestic online gaming interests operate with impunity. "This is absolute discrimination against foreign operators that the WTO has found to be illegal," he said. "It is exactly the kind of practice that the WTO was set up to eliminate, and now the US is violating this very basic principle that it fought hard to put in place at the inception of the organisation." |
| Posted by:3dc |
| #7 Somewhere I'd heard (Cnet or TWiT podcast maybe?) that they are likely angling to post movies and music for sale without paying royalties, which should really rile the MPAA and RIAA. This would be their means of "collecting" the US$100B. I don't know if there's any truth to the rumor, and I didn't click through the link to see if it had any speculation, but I find the idea hilarious since I don't think much about either organization. |
| Posted by: mft 2007-10-12 22:26 |
| #6 Internet gambling is illegal in the US. WTO and free trade delenda est. It is one of the worst policies ever implemented against the US middle and lower classes. |
| Posted by: ed 2007-10-12 17:03 |
| #5 We let domestic online gambling occur with impunity? Really? Damn, better let the Hildebeast campaign know. |
| Posted by: Steve White 2007-10-12 16:32 |
| #4 What's the line on the US being found guilty? |
| Posted by: USN, Ret. 2007-10-12 16:08 |
| #3 is the EU gonna field an army and come collect that 100 billion? If so i would like too fire the first shot at their asses |
| Posted by: sinse 2007-10-12 15:32 |
| #2 Please, please drive another stake into the 'international world order'. Jump up and down with big signs saying "KICK ME". Please, please. Unlike Europe, America hasn't sunk into the pseudo-democratic 'rule by bureaucracy' yet. You forgot about the illegal immigration amnesty program which, whether you supported or not, witness the reappearance of that old American tradition of 'assembly of the people' that makes politicians quake in their little o'elected seats. That's something Eurocrats really never have to fear. So, go ahead, get our attention. Saddam did. |
| Posted by: Procopius2k 2007-10-12 15:01 |
| #1 I think the argument is over 'regulated' versus 'unregulated' online gaming, which is a legitimate right of the United States. The WTO needs to be told quite firmly that the US will go it alone if this crap keeps up. We should make bilateral agreements with nations, and tell all these "world" busybodies to go suck air. |
| Posted by: Old Patriot 2007-10-12 14:29 |