Antigua and Barbuda succeeds in getting WTO to set up
Arbitration panel in dispute with US

Geneva, 21st July… The small Caribbean nation of Antigua and Barbuda has succeeded in getting the World Trade Organisation (WTO) to establish an arbitration panel to hear its dispute with the United States on the cross border supply of gambling and betting services.

The Dispute Settlement Body of the WTO agreed to establish the panel at a meeting in Geneva today.

Addressing the Body, Antigua and Barbuda's Chief Foreign Affairs Representative, Sir Ronald Sanders, argued that "a US ban on the cross-border supply of services violates the General Agreement of Trade in Services which seeks to create equal conditions of competition for domestic and foreign service suppliers". He said, "it is not a reasonable argument to contend that a measure prohibiting cross-border supply has an equal effect on foreign and domestic service suppliers. After all, the US domestic service suppliers are not crossing any borders when they supply the US market to the exclusion of others who are outside US borders".

Sir Ronald also questioned a US government contention that the US has grave concerns about the risks posed by Internet gaming to children. The Antigua and Barbuda diplomat explained that his government prohibits underage gambling and "strictly enforces" the prohibition through an independent regulatory Commission.

He said, "Internet gaming entities are legally defined as financial institutions and are subject to heavy fines and imprisonment for offences, which include money laundering, terrorism financing, fraud and other breaches of the law such as underage gambling".

At the end of the meeting, Sir Ronald said, "We are pleased with the decision to establish the panel. Now, the US, the WTO Secretariat and ourselves have to decide on its composition to ensure that the panellists are both knowledgeable about the issue and possess a broad appreciation of WTO law".

He said he expects this process to begin immediately and to be settled quickly.

"Thereafter, both countries will have to present their legal arguments to the panel and await its decision, but I am pleased that our decision to fight for the interests of our workers has been respected by the WTO."

Several countries indicated their interest in reserving their rights against the United States in the matter. The countries are the European Union, Canada, Mexico, Chinese Taipei and Japan.

(The text of Sir Ronald Sanders' statement to the Dispute Settlement Body of the WTO on 21st July 2003 is also available on this website)