Antigua’s Prime Minister Gaston Browne has instructed his country’s Ambassador to the United States (US) to resume negotiations over the cumulative loss from a 2003 gaming dispute and warned that failure to reach agreement would lead to possible enforcement options including the suspension of protection of US intellectual property rights.
In a broadcast to the nation last week, Browne asserted that the loss from the dispute, which saw a World Trade Organisation (WTO) arbitration panel ruling in Antigua’s favour in March 2004, is in excess of US$200m and the country cannot afford to be deprived of it.
He continued that since the Antigua and Barbuda Labour Party returned to office in June 2014 it has engaged the US authorities in discussions but that Cabinet had agreed that the proposals from Washing-ton” do not represent a serious commitment to resolve the issue” and were “ regrettably paltry”.
Antigua’s Head of State in recounting the history of the dispute, noted that Antigua sought redress from the WTO after the US had unilaterally declared, in violation of its commitments under the General Agreement on Tariffs and Trade (GATT) in services, that internet gaming from Antigua and Barbuda was illegal in the US. Prior to resorting to the WTO tribunal, Antigua said it had tried negotiating with the US.
The Prime Minister lamented that when these efforts failed, Antigua sought adjudication from the WTO which also adjudicated the 2005 US appeal in Antigua’s favour. In 2006 a WTO Compliance Panel found that “The US had taken no action to comply with the rulings and thus remained out of compliance “.
Reverting again to the WTO twice in 2007, Antigua’s level of trade loss was calculated at US$21 Million annually, and the island state was awarded the right to recover the money owed by suspending protection of US intellectual property rights. Browne further added that the US had collected hundreds of millions in penalties and fines in prosecuting Internet gaming operators who were located in Antigua.
The Prime Minister alluded to the fact the two countries have always enjoyed excellent relations with Antigua previously hosting two US military bases and a Voice of America relay station, and the US being a major supporter of Antigua’s tourism industry. Browne said that he hopes that the issue can be resolved through diplomatic channels with Antigua getting an expeditious settlement of what is rightfully due to the nation.
