[TheEngineer]

June 29, 2007

The Honorable Susan Schwab
United States Trade Representative
600 17th Street, N.W.
Washington, D.C. 20508

Cc: President George Bush, Senator Mitch McConnell, Senator Jim Bunning, Senator Harry Reid, and Rep. Geoff Davis

Dear Ambassador Schwab:

I am writing concerning “United States - Measures Affecting the Cross-Border Supply of Gambling and Betting Services (WT/DS285)”, the WTO challenge to U.S. Internet gambling laws by Antigua and Barbuda. As you know, the WTO’s Appellate Body found that the U.S. is not in compliance with our WTO obligations with respect to allowing access to our remote gambling services market. Unfortunately, rather than trying negotiate in good faith with our fellow WTO members within the framework of our agreements, we instead decided to ignore our trading partners’ concerns by withdrawing from the gambling services sector of GATS. This has resulted in Antigua’s demand for $3.4 billion per year in compensation, to come from American intellectual property and copyrights. Additionally, the EU, Macau, India, Canada, Costa Rica and others are lining up for damages as well. It seems our action has significant potential to harm us in many areas while gaining us nothing (aside from the continuation of an unpopular prohibition).

It is very unfortunate that a quibble over a card game has led to this. Our credibility is now at stake, as our refusal to respect the rulings of the WTO has potential to harm our other trade initiatives, particularly with regards to issues of trade fairness with China and the EU. Also, if we choose to continue to disregard our obligations under the WTO, American companies will be stuck with the bill, both from Antigua as well as the repercussions from the trade concessions being sought by the EU and others. Additionally, the U.S. is a world leader in providing of gaming services, so we do need the WTO in this regard as well.

I urge you to reconsider this unprecedented move of withdrawing from the gaming sector of GATS. Instead, let’s keep our international commitments. Keeping our commitments is good for America. I ask that we renounce our withdrawal from the gaming sector of GATS and that we initiate negotiations with Antigua and Barbuda. After all, we made a commitment, and our word should be our bond.

Thank you for your consideration.

Sincerely,