Does the online gambling ban violate the WTO

Antigua thinks so. The Agitator had this to say:

I’ve been trying for months to get reporters to cover is the free trade angle of the Internet gambling ban. Not only is the U.S. trying to impose its own laws and values on the rest of the world, (1) it’s doing so in a manner that protects a U.S. company — Paypal — from overseas competitors, and (2) the exemptions the bill allows for state lotteries, horse racing, and fantasy sports are a blatant violation of the WTO.

The WTO allows a country to ban some goods and services within its borders (Muslim countries with alcohol, for example), but you can’t ban a good or service from another country while allowing it to be sold from domestic providers. That’s sort of the whole point of “free trade.” The gambling ban does exactly that.

This has already been hashed out before. The tiny country of Antigua filed a WTO complaint against the U.S. last year, well before this latest law was passed. Antigua won its complaint in March. The Bush administration — free trade champion through and through — has chosen to simply ignore the ruling.

What’s interesting is that under WTO rules, Antigua is then permitted to retaliate. And what’s really interesting is just how the plucky little islanders might retaliate:

    There’s no appetite for slapping trade sanctions on US goods; that would hurt Antiguan companies and consumers far more than Americans. Instead, the country may refuse to enforce American patents and trademarks. This would make it possible for Antiguan-based companies to produce knock-offs of American intellectual property, like video and music recordings or computer software. Such a tactic would get the attention of major US firms like Microsoft Corp. and entertainment titan Time Warner Inc. It would also put tiny Antigua’s trade war against the United States on front pages around the world.

I’m not a lawyer or anything, but if true this could cause some major clashes between copyright holders and the religious right.

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5 Responses to “Does the online gambling ban violate the WTO”

  1. Check out Dispatches from the Culture Wars. Ed has posts too numerous to mention individually including one that maintains that the law just passed has no bearing on the legality of online gambling (as in online gambling is NOT illegal except for sports betting which is and has always been illegal online.)

  2. Not only does Bush want to impose his “laws” on the rest of the world, but now he wants to take over outer space and limit what people can do up there as well.

    http://www.nytimes.com/2006/10/21/opinion/21sat1.html

    When will this madness end?

  3. I read Dispatches just about everyday. Other than one mention on Outside the Lines on ESPN, that’s about the only place I’ve heard about the ban. I just think that it would be great if tiny little Antigua were to stand up to us and win on this.

  4. Go, Antigua!

    At the very least, it would get this issue some publicity.

  5. Yea! I think most of us would root for the away team.

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