WTO panel opens second hearing in Antigua dispute with U.S.

Wednesday, January 28, 2004

GENEVA, Switzerland: The Panel of the World Trade Organisation (WTO), which is arbitrating the dispute between Antigua and Barbuda and the United States, began its second hearing on Monday in Geneva.

Antigua and Barbuda is challenging the prohibition by the US Government of the delivery of Internet gaming and betting services in to the United States. Antigua and Barbuda's case is based on a claim that the US is violating obligations under the General Agreement on Trade in Services that allows cross-border trade in services. The European Union, Canada and Mexico support Antigua's position as third parties to the dispute.

Antigua and Barbuda took the dispute with to the WTO Dispute Settlement Body after the failure of attempts to settle the matter in direct consultations with the US. 

The Dispute Settlement Body of the WTO authorised the Panel in July last year despite US objections, and the Director-General appointed the Panel members lat August after the US rejected two lists of panellists supplied by the Secretariat.

The first hearing of the Panel was held in December.

At today's hearing, Antigua and Barbuda's Chief Foreign Affairs Representative, Sir Ronald Sanders, told the Panel, "The Antigua case has not been rebutted by the US." He said the US statement at the last hearing was "replete with misstatements and unsupported evidentiary conclusions".

For its part, the US, through its lead representative, Stanford McKoy, claimed that Antigua must "identify all relevant US legislative and regulatory provisions that the Antigua Government is challenging". Sir Ronald retorted, "Such an approach would deter developing countries from using the dispute settlement system, effectively limiting access to the WTO dispute machinery to the richest members."

The Antigua diplomat said, "Because of scarce resources, developing countries find it difficult to bring dispute settlement cases to the WTO even when the domestic legislation is simple". 

"If panels were to adopt the approach that every law had to be examined and distilled, when only one law had to be established, dispute settlement would be impossible", Sir Ronald argued.

The Panel hearing wraps up today with other technical and legal issues being discussed. 

A descriptive part of the Panel's report is scheduled to be issued on 20th February with the interim report expected in mid-march after which the parties to the dispute could request a meeting with the Panel to review parts of the Report.

"I fully expect the US to ask for such a meeting. It would fall into their pattern of using every opportunity for a delay," Sir Ronald said. He added, "If this happens, as I am sure it will, the Panel will have to ask the Dispute Settlement Body of the WTO for an extension of time and the final report will not be out before mid-May."

He concluded, "Whatever happens, we intend to see this through to the end. We have Antiguan jobs and revenue at stake here."  

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