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Friday, June 6, 2008

EU investigates Violation over US Online Casino gambling ban

As the trade dispute over US online casino gambling between the United States and the European Commission continues, the EU initiated a formal investigation over U.S. anti online gambling acts. The Commission appointed by the EU handed over a list of questions to U.S. officials in relation to a possible U.S. trade violation for preventing Americans from playing at their favorite online casinos based in the Europe.

The past director of policy planning for USTR Robert Zoellick, Naotaka Matsukataand, stated that. "The cumulative effect of U.S. WTO related actions over the past year have forced the European Union to take this dramatic step. The line of inquiry opened by the questionnaire could reveal that the U.S. is engaging in unfair, discriminatory, and selective prosecution of European online gaming operators....If the E.U. takes the nuclear option and brings the U.S. to the WTO, serious damage would be inflicted on the bilateral relationship at a delicate time in transatlantic relations," added Matsukata. "Rather than taking this risk, the USTR should work with Congress, as the United States Constitution instructs, to resolve the dispute by adopting Congressman Frank's Internet Gambling Regulation and Enforcement Act to bring the U.S. into WTO compliance."

Peter Mandelson acting EU's Trade Commissioner expressed interest in bringing the trade violation to a conclusion yet stated that the discrimination against E.U. companies, Bt preventing Amrecian online casino players from playing online, cannot be part of the policy mix.

The European Commission investigation pin pointed the reckless manner in which the USTR has sought a protectionist trade policy, setting a precedent that threatens to expand beyond US online casinos gambling into other areas of trade.

The European Commission investigation follows a recent WTO decision in a case brought by the Caribbean nation of Antigua against the U.S. The ruling confirmed that the U.S. is practicing illegal trade discriminatory practices against foreign online gambling operators. Antigua continues to seek a settlement from the U.S. for the trade violation.

After the investigation, the European Commission could pursue discussions with the U.S. to find an appropriate solution to end the discrimination and for US casino players o move back to their favorite pass time. If the US and the EU will not settle the issue themselves, the Commission could bring a case against the U.S. to the WTO.

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