U.S. Trade Representative Under Fire

Last week, another lawsuit was filed against the federal government of the United States. Ed Brayton, a writer for the Michigan Messenger, has filed a lawsuit against the Office of the United States Trade Representative in order to force the disclosure of terms of a settlement between the United States and European Union that stemmed from the U.S. closing its borders to foreign online gambling operators. Brayton had originally requested the information earlier this year under the Freedom of Information Act. His request was denied after the USTR declared it was a matter of national security.

Brayton’s official complaint highlights the fact that Americans need to know “what kind of trade settlements their government is cutting with other countries.” The U.S. settled complaints with Antigua and the European Union in late 2007, the terms of which were not fully divulged. As a result of not allowing internet gambling companies to solicit U.S. customers, the United States was force to remit concessions to other countries. Patent and copyrights were compromised in the Antigua settlement. International shipping rights were affected in the EU settlement.

The lawsuit comes on the heels of a letter written by Barney Frank and Ron Paul requesting the details of settlements with Canada, EU, and Japan. The letter states, “It is our understanding that your agency has cited ‘national security’ in refusing to release details about this agreement in response to a Freedom of Information Act request. We find this unacceptable. If, in fact, there are some additional trade concessions that were made that do have national security implications, we request a secure briefing on those issues.” The letter was sent to The Honorable Susan C. Schwab in mid-March.

The Interactive Media Entertainment and Gaming Association, or iMEGA, has filed a lawsuit to declare the UIGEA unconstitutional. The organization filed notice on April 1st with the Third Circuit Court of Appeals. One month earlier, iMEGA was granted standing by Judge Mary L. Cooper. Eric Bernstein, iMEGA’s lawyer in the case, noted in a press release, “Although UIGEA is purportedly designed to limit illegal Internet gambling, it falls woefully short of having the ability to accomplish that purpose and fails the American people on a number of fronts. If promulgated, the proposed regulations would stifle online innovation and commerce; inadequately protect children by failing to ensure adequate safeguards; and have a chilling effect on the digital civil rights of all Americans.

Brayton is being represented by Public Citizen. The suit requests details of the EU settlement and the USTR has 60 days to respond. The complaint is dated May 19.