The United States plans to ignore the World Trade Organisations recent ruling that claimed it was breaking WTO rules regarding opening markets, it was revealed yesterday.
In a simple solution to a difficult problem US trade representatives just plan to redraw the details of its commitment to the WTO, essentially carving out online gambling from the agreement so the WTO no longer has jurisdiction in that area.
The US had committed to open US markets to recreational services when the WTO was formed, but is now saying, rather conveniently you might think, that online gambling was never meant to be part of that. According to Deputy US Trade Representative John Veroneau: “We are just clarifying our commitments.”
This is allowed under WTO rules but will mean the US must negotiate with any countries that object to the move, and will potentially be liable for compensation claims.
It will also be the first time that any country has taken such a course of action in the face of a lost trade dispute, and could have very serious consequences for the future of the WTO. If other countries decide to follow suit and pull out of commitments whenever trade disputes don’t go their way, it could spell the end of the WTO.