USTR and EU Will Focus on Online Gambling Next

March 26, 2009 | News Category: Gaming Law

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Although there have been a number of conflicts that still need resolving between the United States and the European Union as far as trade agreements are concerned, new talks are moving along in a positive manner. Ron Kirk, the US Trade Representative (USTR) and Catherine Ashton, the EU Trade Commissioner (EUTC) are conducting much friendlier talks than had been conducted in the recent past.

The main point on the agenda for discussions between the USTR and the EUTC are on the subject of Internet gambling. This includes a discussion on how various trade agreements have an affect on commerce in service industries such as online casinos.

Ashton and Kirk have both agreed that one of the main priorities to be discussed is regarding fighting protectionism. Wikipedia explains that protectionism is when a country has an "economic policy of restraining trade between nations, through methods such as... restrictive quotas, and a variety of other restrictive government regulations designed to... prevent foreign take-over of local markets."

Protectionism contrasts with free trade amongst nations. Because of free trade being impinged by the US government when the UIGEA (Unlawful Internet Gambling Enforcement Act) was implemented in 2006, small countries that license online casinos, such as Antigua, have suffered. Antigua is a small island nation that has lost a lot of revenue through less trade in online casino licensing services. Antigua took their case to the WTO (World Trade Organization) who found in their favor against the US.

Both Kirk and Ashton have also agreed that they will push the Doha Agenda. The Doha Agenda emphasizes the importance of supporting free trade with third-world countries. Free trade helps the poorer third-world countries to develop economically.

Catherine Ashton has announced that next week, the EU investigation into US Internet gambling policies will be officially released. Unofficially, however, there have been leaks which have shown that the EU's investigation has found grounds enough for the EU to take their complaints regarding the US's online gambling policies to the WTO.

The EU leaders would, however, prefer to keep that option on the back burner for the time being. They are hoping that friendly negotiations will get the US to stop the selective persecution that has been carried out on European online casino operators.

Unofficial comments from the EU delegation noted that it was pleasing to be treated with respect by the US after they had been summarily ignored by the previous administration.

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