 In
a battle evocative of the biblical David vs. Goliath, on Friday,
Dec. 21, World Trade Organisation arbitrators ruled in favor
of tiny Caribbean nation Antigua in a longstanding trade dispute
with the United States over online gambling. The judgment
of 21 million dollars per year in compensation, though, was
much less than the 3.4 billion dollars that Antigua had been
seeking, but was greater than the 500,000 dollars that American
trade officials proffered to settle the confrontation.
It is the method of compensation that has raised the most
eyebrows. The arbitrators ruled that Antigua had the right
to suspend its legal obligations in respect to copyrights,
trademarks and other intellectual property on products made
in the United States. In effect, the ruling gives the Caribbean
nation the right to copy and distribute profitable items
such as American movies and software without paying for
it. This unusual method was decided upon because the W.T.O.
agreed that Antigua has no other avenue of leverage against
the United States in the dispute.
At the root of the dispute is the lack of access to the
lucrative U.S. market for Antigua's expanding online gambling
industry. It has become the second-largest source of revenue
for the small country, behind tourism. The W.T.O. ruled
against the United States on this issue back in 2004, and
it was upheld in 2005 on appeal.
In spite of the ruling, a U.S. trade representative cautioned
Antigua not to violate intellectual property rights, intimating
that such an action would undermine the island nation's
desire to become a regional leader in legitimate online
transactions, and might discourage future foreign investment.
Adding further uncertainty on the judgment, in May 2007
the United States asserted that it was rewriting its trade
laws to lift jurisdiction over gambling from the W.T.O.
In 2006, the United States Congress passed a law prohibiting
the transfer of money from a financial institution to an
Internet gambling site, except fantasy sports, online lotteries,
and horse/harness racing. Title VIII of the Security and
Accountability For Every Port Act is also called the Unlawful
Internet Gambling Enforcement Act of 2006.
Antigua is an island in the Caribbean Sea, the main island
of the country of Antigua and Barbuda. It is the largest
of the Leeward Islands, and the most developed and prosperous
due to its upscale tourism industry, offshore financing,
Internet gambling, and education services, including two
medical schools.
Its white-sand beaches are globally renowned, and the natural
harbors are an internationally known as a yachting and sailing
destination. In May, an yearly world-class yachting regatta,
which began in 1967, takes place and draws many sailing
vessels and sailors to the island to race and socialize.
Dave Elliott is the president of Caribbean
Art and Prints, which offers exquisite
art prints of Antigua and Barbuda, as well as other
beautiful islands in the Caribbean.
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