Did the US violate global trade agreements?
3rd March, 2009
It has been reported that the European Commission has now ended its formal investigation into the US clampdown on European gaming companies.
It is alleged that the report finds the United States guilty of violating global trade agreements by targeting European online gaming companies for legal enforcement while allowing US companies to operate freely in the US market following the 2006 UIFEA (Unlawful Internet Gambling Enforcement Act).
Those with insider knowledge have indicated that the Commission will recommend going the World Trade Organisation and taking legal action against the United States.
However, it is hoped that the EU executive who overseas trade policy will first enter into talks with the new Obama administration to negotiate a solution.
"The report next month will back the EU's position," a source told Reuters in Brussels late February, "but the Commission intends to deliver its findings to Washington which it hopes will persuade the US to start bilateral talks to find a solution without going to the WTO."
"A case would take a very long time tied up at the WTO and in the current spirit of avoiding protectionist moves in line with the G20 (Group of 20 emerging and industrial nations) statement, action should be avoided," the source added.
Many hope that the Obama administration will repeal the UIGEA.
By Annabel
