Antigua WTO Press Release-US action contrary to purpose of GATS

[Jay Cohen]

http://www.theregister.co.uk/2007/05...o_us_gambling/

Antigua calls for pirates to return to Caribbean

House of Cards Antigua and Barbuda - a nation of 70,000 in an area roughly half the size of San Francisco - has formally requested that the WTO allow it to suspend its intellectual property obligations to the United States, AP reports.
Although many in the US have mocked tiny Antigua'a case against the US with a shrug of the shoulders, the Antiguans have always carried in their pockets a nuclear option of sorts. Most Americans view trade disputes through the prism of tit-for-tat protectionist schemes. A perceived price subsidy leads to retaliatory tariffs, etc; but the obligations imposed by WTO obligations run deeper than that.

Repeated violation of WTO commitments in the face of contrary WTO rulings allows a victimized member country ultimately to suspend its own WTO obligations to the offending nation - a form of restitution much more punitive than tariffs alone. America runs a steady and hefty trade deficit in virtually every category of international trade other than intellectual property.
Were the WTO - with possible European, Japanese, and Chinese support - to allow the Antiguans to suspend all intellectual property obligations to the United States, the American IP industry could face a tiny adversary with an unlimited right to reproduce for its own benefit American IP goods of any kind..............(Click on link to read the balance)

[TheEngineer]

I wrote to my congressman and senators and explained that I would expect the U.S. to not renege on our commitments to the WTO.

[MiltonFriedman]

I wish they were not so, but the facts are:

1. Antigua imports heavily FROM the US and depends somewhat on US tourism.
2. Antigua is deep in hock to the Stanford banking interests
3. For the right, and not too high a price, Antigua can essentially be bought, i.e paid enough "aid" and other benefits to make it worthwhile to kick out online gaming.

The Spencer government would be foolish not to act in the national interest take a generously valued trade package in exchange for Bill Scott et al. Keep the non-US online sites, kick out the US sites and we will give you $20 million, $50 million, $100 million ..... whatever.

Hell, weren't poppy-growers paid not to grow poppies ?

Yeah, the issue is coming to a head, I am not sanguine about the outcome for online gaming however.

(Jay, you've been to Antigua. If you think I am wrong, please point out how.)

FWIW, I think the Antigua lawyers did a great job. The form of the benefits to Antigua asre up in the air. It would be ironic if the effort cost the gaming interests their sanctuary.

Milton

[TheEngineer]

Nice post Milton. I've mentioned similar things here as well.

The WTO ruling is good for us, but we have to back it up with political change. In other words, the U.S. has to WANT to comply. Otherwise, the U.S. will not. Hopefully we'll write and call Congress and ask them to honor our commitments.

[Jay Cohen]

[ QUOTE ]
I wish they were not so, but the facts are:

1. Antigua imports heavily FROM the US and depends somewhat on US tourism.
2. Antigua is deep in hock to the Stanford banking interests
3. For the right, and not too high a price, Antigua can essentially be bought, i.e paid enough "aid" and other benefits to make it worthwhile to kick out online gaming.

The Spencer government would be foolish not to act in the national interest take a generously valued trade package in exchange for Bill Scott et al. Keep the non-US online sites, kick out the US sites and we will give you $20 million, $50 million, $100 million ..... whatever.

Hell, weren't poppy-growers paid not to grow poppies ?

Yeah, the issue is coming to a head, I am not sanguine about the outcome for online gaming however.

(Jay, you've been to Antigua. If you think I am wrong, please point out how.)

FWIW, I think the Antigua lawyers did a great job. The form of the benefits to Antigua asre up in the air. It would be ironic if the effort cost the gaming interests their sanctuary.

Milton

[/ QUOTE ]

You assume that Antigua doesn't know the value of what they have won. Barney Frank stands up and says this can bring in $3 billion a year in tax revenue. When they indict BOS the US claims $4.5 billion in revenue. Antigua knows the value of the industry. What's the value to the US to get Antigua out of the way for a lifetime?

Antgua is in the strongest position it has ever been in this case. Why would they fold for a song now? Also, many Americans seem to assume that every small country in the world can be bought by the US and not for much. It's not always true. Antigua wants their industry. They didn't come this far for spare change.

Tourism and imports have nothing to do with this. Seeking remedies won in the WTO arena is not supposed to bring retaliation. All Antigua wants to do is claim what they won in a legitmate, neutral forum. They are even willing to give up elements of the win to get it settled. Unfortunately, for the last four years the US has lied, negotiated in bad faith, and done nothing but spin the decision in the media. Maybe when the RIAA and Motion Picture Association ask their lobbyists what the hell is going in in DC and why their product is suddenly unprotected Congress will wake up and pressure the Administration to settle the case?

Antigua has a national debt like many countries. I am not sure how much, if any, Stanford is holding.

Engineer, thanks for contacting your Congressman.

[MiltonFriedman]

"When they indict BOS the US claims $4.5 billion in revenue. Antigua knows the value of the industry."

Jay, you should know the effective tax revenue to Antigua from the gaming industry ..... $0, whether EC or USD. Gaming companies do NOT pay income tax to Antigua.

Gaming companies pay an annual license fee.

The direct revenue value to Antigua of the gaming industry is $1 less than what a competing jurisdiction would offer.

The indirect value of employment taxes is similarly close to zero.

It is suprising you think that tourism and imports have nothing to do with the Antigua economic future and planning.
The Antiguan economy does get value in employment, but it could easily be replaced by other industries' call centers operations. Thee are only 60,000 Antiguans.

If a couple of big US companies were to invest in a call center or 2 or 3, there goes that "unique" contribution of gaming.

Similarly, if there were development funding for tourism or financial services jobs, why wouldn't the Antiguans cash in their WTO chips and go "legit".

(Jay Cohen, you probably should have a good feel for what Stanford's role in Antigua has been.)

[TheEngineer]

[ QUOTE ]
Engineer, thanks for contacting your Congressman.

[/ QUOTE ]

The Honorable xxxx yyyy
United States House of Representatives
0000 Longworth House Office Building
Washington, D.C. 20515-1704

Dear Congressman xxxxx:

As a Republican constituent and voter in your district, I am writing to express my objection to the United States’ withdrawal from the gaming sector (Article 21) of the GATS agreement. This unprecedented withdrawal, made in response to our loss to Antigua in a dispute heard by the WTO over Internet gambling access, will have far-reaching ramifications for the U.S. While the federal government seems to feel there is some driving national interest in legislating the moral beliefs of a few on all Americans by preventing us from playing poker online, the fact is that we need the WTO now more than ever. We have many trade disputes worldwide. We need access to markets and other trade controls. We need the WTO to deal effectively with China. Should we sacrifice this to satisfy the very few social conservatives who, despite the lack of even a single negative reference to gambling in the Bible, feel they have to tell OTHERS not to play poker in their OWN homes on their OWN computers?

I think not. Please ask President Bush to rescind this withdrawal from GATS. We made the commitment, so we should stick to it. The word of the U.S. should be our bond.

Thanks for your consideration.

Sincerely,

TheEngineer