Twice this month, World Trade Organization deadlines passed without resolution. The WTO last year backed Antigua's request to target U.S. services, copyrights and trademarks in retaliation for a U.S. online betting ban _ but ruled it could impose only $21 million in annual sanctions. On Monday, Finance Minister Errol Cort said both sides were aiming to achieve resolution by July 11.

gamblingplanet.org

Antigua accuses the U.S. of crippling its gambling industry by banning Americans from placing online bets with gambling operators, including those based in the twin-island nation of 70,000 people. Last month, the World Trade Organization backed Antigua's request to target U.S. services, copyrights and trademarks in retaliation for a U.S. online betting ban, but ruled it could impose only $21 million in annual trade sanctions.

Finance Minister Errol Cort, speaking to reporters before boarding a flight to Washington, said a Thursday sit-down with U.S. Trade Representative Susan Schwab would be the first “detailed discussions” between the tiny Caribbean islands and the United States over the gambling discord.

“We believe this matter can be settled in an amicable way because we enjoy an excellent relationship with the United States,” Cort said. “I am therefore hopeful (we can) come to some broad understanding in terms of settlement.” Cort has described the WTO's decision as a setback for Antigua, which had sought to apply $3.4 billion in retaliatory measures against U.S.

A law passed by the U.S. Congress in 2006 bars banks and credit card companies from processing payments to online gambling businesses outside the country. The regulation effectively blocks Antigua's access to the U.S. gambling market, the most lucrative in the world.

gamblingplanet.org

The decision means Antigua can take copyright-protected U.S. goods, like CDs and software, and sell them without copyright protection. The value of the goods can total up to $21 million a year to satisfy the supposed damages the country has suffered.

The ruling estimated Antigua's trade loss at $21 million, which is less than the country estimated but more than the United States estimated. Antigua claimed $3.4 billion in losses; the United States said the country would lose $500,000. The panel came up with its figure based on compliance with the U.S. law rather than actual loss estimates based on the gaming prohibition.

Mark Mendel, the attorney representing Antigua in the World Trade Organization dispute, said that arbitration panels have only ruled once before that a country could suspend protection of intellectual property rights granted to U.S. businesses and said the move was a very potent weapon.

“I hope that the United States government will now see the wisdom in reaching some accommodation with Antigua over this dispute and look forward to seeing efforts in this regard,” he said in a statement. However, Mendel said the amount of the damages favors the United States.

“What appears to have been done here is assuming a form of compliance that has not happened and probably will not happen without giving Antigua the ability to contest the method under the WTO's normal procedures,” he said. The amount chosen by arbitrators isn't subject to review by the appellate body of the WTO, he said.

gamblingplanet.org

The tiny Caribbean nation can exercise the sanctions in intellectual property, such as films and music, for instance by lifting copyright protection, as well as in services, which includes sectors such as banking and telecommunications as well as gambling, he said.

Antigua had asked the WTO for permission to impose $3.44 billion in “cross-retaliation”, allowing it to seek damages outside the original services sector. Washington had argued Antigua was entitled to only $500,000 in compensation.

gamblingplanet.org