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A Contentious Situation: 4

So with the EU delegation in the US and talking with representatives of the US government it begs the question – what will happen should the discussion go south? The EU delegation has outlined some of its planned actions if the US government is not willing to address some of its issues related to the discrimination of online casinos and the inconsistent implementation of foreign trade policies outlined in the GATS treaty. Again, the inconsistencies relate to trade commitments pertaining to the online casino gambling industry. But the effect of further US non-compliance with EU negotiations goes even deeper than additional WTO action – the US is in the position of potentially toppling the effectiveness of the WTO.

After all, what good is the WTO if it as no real power to force the US into compliance on issues brought before the Organization. Antigua and the EU have sough the assistance of the WTO in finding a solution to the online casino gambling issue…the US continues to disrespect the WTO’s authority by ignoring WTO rulings.

The wide sweeping consequences of violating the authority of the WTO are already beginning to effect issues outside of the online casino gambling issue. A trade advisor in Washington, Nao Matsukata, noted the situation in China as an example of why it is important to respect foreign trade alliances and agreements – even in a situation like online casino gambling.

Matsukata elaborated on some of the impacts that Bush Administration policies have already had on the international community. He notes, "The U.S. may find itself in a difficult political situation with Brussels. The 'disconnect' between trade and law enforcement policy compounds the matter, and risks leaking into other areas of the transatlantic relationship. The current course of U.S. action may also expose U.S. business to retaliatory measures in other countries if more WTO members adopt these types of policies…Greater congressional oversight of trade policy is probably inevitable to ensure that executive branch agencies maintain the proper regard for the nation's treaty commitments and priority interests."

All told, the online casino gambling legislation and enforcement actions by the US Department of Justice and other US agencies have severely strained international relationships and the current meeting with the EU delegation has the potential to solve or severely exacerbate the situation.