U.S. Admits Small Loss in WTO Case

Gretchen Hamel, spokesperson for the U.S. Trade Representative's office, confirmed Thursday that a World Trade Organization panel recently ruled against the U.S. in a case that dates back to 2003.

More recently, in April 2005, Antigua and Barbuda filed a complaint with the WTO that U.S. restrictions on internet gambling were in violation of WTO rules. The two nations have worked hard to build up their internet gaming industries to make up for declining tourism, and feel that the U.S. is impeding free trade. The 2005 case focused on U.S. restrictions on online horse racing, while the original 2003 case revolved around online betting in general.

The WTO ruled against the U.S. in 2005.

Since then, as is well known in the online poker world, the U.S. has enacted additional legislation against online gambling. Antigua and Barbuda appealed to the WTO once again that the U.S. has done nothing to comply with WTO rules, so the WTO examined the case again in July 2006.

Said Hamel of the Thursday ruling, “…[the WTO panel] did not agree with the United States that we had taken the necessary steps to comply.”

Of course, spin-meister Hamel went on to say, “"Nothing in the panel's interim report undermines the broad, favorable results that the United States obtained from the WTO in April 2005.”

Those “favorable” results are up for debate.

The U.S. will still be able to present its argument to the WTO before the body issues it’s final report in March.

Originally published 4:58 PM Friday, January 26, 2007