US files complaint with WTO

[evazan]

http://arstechnica.com/news.ars/post/200...t-with-wto.html (http://arstechnica.com/news.ars/post/20070409-us-says-china-isnt-doing-enough-about-piracy-files-complaint-with-wto.html)

This article says that the US is filing a complaint with the WTO claiming China isn't doing enough to stop pirating. I do not know much about legal issues but since the WTO recently concluded we weren't complying with their regs in the Antigua case could they tell us we are out of luck in this case?

[flafishy]

Two separate issues, each with no bearing on the other.

[Nate tha\\\' Great]

[ QUOTE ]
http://arstechnica.com/news.ars/post/200...t-with-wto.html (http://arstechnica.com/news.ars/post/20070409-us-says-china-isnt-doing-enough-about-piracy-files-complaint-with-wto.html)

This article says that the US is filing a complaint with the WTO claiming China isn't doing enough to stop pirating. I do not know much about legal issues but since the WTO recently concluded we weren't complying with their regs in the Antigua case could they tell us we are out of luck in this case?

[/ QUOTE ]

That's what Gambling 911 is speculating.

http://www.gambling911.com/US-Online-Gambling-WTO-Decision-040807.html

Not the best source, I know, but it will be interesting to watch how this stuff develops.

[Nate tha\\\' Great]

[ QUOTE ]
Two separate issues, each with no bearing on the other.

[/ QUOTE ]

That's not what at least one member of Congress thinks:

http://www.antiguawto.com/LettertoUSTR.pdf

I would not call myself optimistic about the current playing field by any means but like I said ... this has the potential to get interesting. The US has a major credibility problem if it chooses to simply ignore WTO rulings.

[evazan]

[ QUOTE ]
Two separate issues, each with no bearing on the other.

[/ QUOTE ]

This is what I originally thought would be the case but hopefully nate is right that our unwillingness to cooperate with their ruling could lead to them not hearing our cases.

[JPFisher55]

Ultimately, if the US ignores WTO decisions, then the WTO will be meaningless because no country will honor its decisions.

[Jay Cohen]

Good article

http://forums.eog.com/online-sportsbooks...-all-81967.html (http://forums.eog.com/online-sportsbooks-and-gambling-discussion/wto-case-against-china-could-all-81967.html)

WTO case against China could all be for nothing

written April 10, 2007

The Bush administration announced new trade cases against China on Monday over copyright piracy and restrictions on the sale of American movies, music and books. But if the United States continues to pick and choose which WTO decisions they follow it could all be for nothing.

Forces below the surface are starting to stir in the U.S. Congress in regards to the World Trade Organization’s ruling of non-compliance in the case with Antigua. Not only are some prominent politicians concerned about the potential havoc Antigua could incite to copyright laws, there are bigger issues with the WTO. Some very radical problems could result if the U.S. does not take this ruling in favor of Antigua seriously.

Trade law negotiations are the responsibility of the Executive Branch, the President's appointees, specifically the U.S. Trade Representative. Congress has the power only to approve or reject trade treaties. This causes a troublesome disconnect when the WTO expects compliance because it forces Congress to act, even though the President's Trade Representative is defending the U.S.

Congress is starting to ask questions about Antigua. Ileana Ros-Lehtinen, the ranking Republican member of the House Congressional Committee on Foreign Affairs, wrote a letter dated March 20, 2007 (http://www.antiguawto.com/LettertoUSTR.pdf) airing concerns about what the Trade Representative plans to do to ameliorate the issues in the favorable ruling for Antigua.

Rep. Ros-Lehtinen noted, "…our failure to resolve this dispute may harm our credibility as we seek to press countries like China regarding their violations on a range of issues, including intellectual property protection, subsidies, and currency manipulation." She further warned, "In the event the United States fails to reach a satisfactory resolution of the Antigua dispute, it could provide China with an argument to ignore a WTO decision favorable to the United States."

This is good news for gamblers because ultimately change must come from Congress. To hear they are paying attention to WTO rulings despite the outright denial of guilt by the USTR is a positive sign. The fact it comes from a member of the President's party makes it even more promising.

The President's appointees so far have handled the case with general disdain. The Trade Representative made a bizarre claim that horse race wagering conducted over state lines is actually illegal and just hasn't been enforced. With responses like this it's safe to say the President's people have little intention of budging a bit to accommodate Antigua.

The letter from the Committee was sent before this week's news announcing the U.S. Trade Representative will send a complaint to the WTO regarding China and piracy issues. The Trade Office stated they have held off on the Chinese action to give time to come into compliance, but it appears their patience has worn thin with an election cycle approaching. One wonders how long would be justified for the U.S. to bring its gambling laws into compliance?

China's entry to the WTO came with big fanfare. China's opening its market to global products and competition has been stunningly successful. Investment and knowledge inflows have been crucial to China's growth of nearly 10 percent a year. Foreign investment however could get locked up if China were to withdraw from the WTO.

What's worse, China has been forced to come much closer to world standards of free trade and market access. Just as they reach a critical mass point, China could shut things down and just try to make a go outside WTO agreements should they choose. Such a move wouldn't hurt China much as they are awash in capital investment as opposed to severely lacking capital just a decade ago.

All it takes is for China to stop seeing benefits from belonging to the WTO. Ignoring rulings could change China's sentiment. The first sign will come when China is ruled against in a motion such as the piracy charge. China will say like the U.S. it disagrees and it will take no corrective action. If China did pull out of the WTO the result for the world economy would undoubtedly be a major recessionary spiral.

Is this a price the U.S. is really willing to pay just to keep its citizens from gambling online? In the bigger scope of governmental responsibility you would have to say no. While the U.S. certainly has shown its willingness to stare down contrary world opinion, common sense dictates it needs to pick its battles wisely. Preventing one small country from offering online gambling surely isn't a matter which you risk the health of the world's economy over.

written by Kenneth Weitzner--EOG

(PS- I have permission from the author to post)

[Arruda]

[ QUOTE ]
Ultimately, if the US ignores WTO decisions, then the WTO will be meaningless because no country will honor its decisions.

[/ QUOTE ]

You are aware that there are other civilized and wealthy countries accross the Pacific and Atlantic?

[RoundGuy]

[ QUOTE ]
[ QUOTE ]
Ultimately, if the US ignores WTO decisions, then the WTO will be meaningless because no country will honor its decisions.

[/ QUOTE ]

You are aware that there are other civilized and wealthy countries accross the Pacific and Atlantic?

[/ QUOTE ]
Who will follow the US' example and ignore the WTO. What's your point?

[ginko]

That article gives me hope, yayy

[Richas]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Ultimately, if the US ignores WTO decisions, then the WTO will be meaningless because no country will honor its decisions.

[/ QUOTE ]

You are aware that there are other civilized and wealthy countries accross the Pacific and Atlantic?

[/ QUOTE ]
Who will follow the US' example and ignore the WTO. What's your point?

[/ QUOTE ]

Who will happily slap on sanctions and force the US to rethink or pay the price (billions).

[Skallagrim]

The Money will eventually talk here.

And the Money will say "you will lose a lot more of me if you make a mockery of the WTO then if you abide by its rulings."

And then either the horse racing inductry will be sacrificed (along with fantasy sports and online lotto sales) or online gaming will be legal.

[RoundGuy]

[ QUOTE ]
The Money will eventually talk here.

And the Money will say "you will lose a lot more of me if you make a mockery of the WTO then if you abide by its rulings."


[/ QUOTE ]
Does the WTO have that much power? Quick examples of them exercising that power? No sources required, just off the top of your head is fine. I trust you. /images/graemlins/smile.gif

[Skallagrim]

No, roundguy, the WTO doesnt really have that "power." Its only power is to say to Antigua: OK you have the right to do some unfair trade practices to the US. And that, of course, means nothing to the US. I could find some examples of the WTO doing this, but thanks for not making me.

But the UK and possibly most of the EU are very interested parties here, as Richas notes, and if they do some economic retaliation too ... now we are talking real money.

But the main point for this thread is that the US is the country that benefits most from the WTO - if the WTO becomes worthless and countries went back to unorganized individual trade policies, the US economy will suffer big.

[Emperor]

[ QUOTE ]
[ QUOTE ]
The Money will eventually talk here.

And the Money will say "you will lose a lot more of me if you make a mockery of the WTO then if you abide by its rulings."


[/ QUOTE ]
Does the WTO have that much power? Quick examples of them exercising that power? No sources required, just off the top of your head is fine. I trust you. /images/graemlins/smile.gif

[/ QUOTE ]

Here is a source, which has numerous other sources listed, on the effectiveness of the WTO pre 2004. After reading it I am encouraged that the WTO might actually be able to enforce its decision against the US in the Antigua case.

http://www.wti.org/conf/documents/Davey-TheWTODisputeSettlementSystem.pdf

I tried finding a link to the current list of WTO fines that the US is paying, as it is no small amount, but haven't found one yet.

[Emperor]

Another article discussing how the WTO works its magic.

http://www.cfr.org/content/publications/attachments/WTO_CSR25.pdf

[Reef]

[ QUOTE ]
Another article discussing how the WTO works its magic.

http://www.cfr.org/content/publications/attachments/WTO_CSR25.pdf

[/ QUOTE ]

no one's gonna read a 50 page document. sparknotes?

[Richas]

[ QUOTE ]
[ QUOTE ]
Another article discussing how the WTO works its magic.

http://www.cfr.org/content/publications/attachments/WTO_CSR25.pdf

[/ QUOTE ]

no one's gonna read a 50 page document. sparknotes?

[/ QUOTE ]

Just how sad do you think some 2+2ers are? OK very sad.

The report says WTO good for US. US gov should comply itself if it wants it to work better for the US. The current system can be "gamed" to delay enforcement so retrospective punishments should be considered. The US policy makers do not prioritise their international obligations as is shown by the way the US has to defend more cases than it takes out and the way the US has lost in 5 of six cases where they put on temporary tariffs.

Essentially WTO works but it takes too long. The US should use it more strategically (ie the recent China case) and comply better itself.