WORLD TRADE  
ORGANIZATION  WT/DS285/22 
22 June 2007 
 
 (07-2650) 
 Original:   English 
  
 
UNITED STATES – MEASURES AFFECTING THE CROSS-BORDER SUPPLY 
OF GAMBLING AND BETTING SERVICES 
 
Recourse by Antigua and Barbuda to Article 22.2 of the DSU 
 
 
  
 The following communication, dated 21 June  2007, from the delegation of Antigua and 
Barbuda to the Chairman of the Dispute Settlement Bo dy, is circulated pursuant to Article 22.2 of the 
DSU.   
_______________ 
 
 
Antigua and Barbuda requests that the followi ng item be included in the agenda of the 
meeting of the Dispute Settlement Body (the "DSB ") of the World Trade Organisation (the "WTO") 
to be held on 24 July 2007: 
 
"United States – Measures Affecting the Cross-Border Supply of Gambling and 
Betting Services " (WT/DS285) – Recourse to Article 22.2 of the Understanding on 
Rules and Procedures Governing the Settlement of Disputes by Antigua and Barbuda 
 
Pursuant to Article 22.2 of the WTO's Understanding on Rules and Procedures Governing 
the Settlement of Disputes (the "DSU"), Antigua and Barbuda requests authorization from the DSB to 
suspend the application to the United States of co ncessions and related oblig ations of Antigua and 
Barbuda under the  General Agreement on Trade in Services (the "GATS") and the Agreement on 
Trade-Related Aspects of Intellectual Property Rights (the "TRIPS").  
 
Antigua and Barbuda's aim through this suspensi on is the effective withdrawal of concessions 
and other obligations so as to match the level of nu llification or impairment of benefits accruing to 
Antigua and Barbuda, amounting to an annual va lue of US$3.443 billion, as a result of the 
United State's failure, as of 3 April 2006, to bri ng its measures affecting the cross-border supply of 
gambling and betting services into compliance with the GATS or to otherwise comply with the rulings 
and recommendations of the DSB in United States– Measures Affecting the Cross-Border Supply of 
Gambling and Betting Services ("DS285") . 
 
Antigua and Barbuda has held discussions w ith the United States with a view towards 
agreement on compensation, but to date these disc ussions have not resulted in any agreement.  
Antigua and Barbuda remains hopeful that further di scussions may result in resolution of this issue, 
and if so it will inform the DSB as soon as practicable. 
 
Background  
 
On 21 July 2003, the DSB established a panel at  the request of Antigua and Barbuda.  Both 
the panel and the Appellate Body in DS285 foun d certain measures of th e United States to be 
inconsistent with the obligations of the United States under the GATS.  On 7 April 2005, the DSB WT/DS285/22 
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  adopted the report of the panel, as modified by the report of the Appellate Body.  The resulting DSB 
recommendations and rulings include, inter alia , the recommendation that the United States bring the 
measures found to be inconsistent with the GATS in to conformity with its obligations under that 
agreement (WT/DS285/AB/R, para. 374).  A WTO appoint ed arbitrator subsequently determined that 
the "reasonable period of time" for the United St ates to implement the DSB recommendations and 
rulings would expire on 3 April 2006. 
 
The compliance period expired on 3 April 2006 without action being taken by the United 
States to bring its measures into compliance with  the recommendations and rulings of the DSB in 
DS285.  On 10 April 2006 the United States subm itted a status report to the DSB regarding 
implementation of the DSB recommendations and rulings in which the United States informed the 
DSB that, in its opinion, it was in compliance wi th the DSB recommendations and rulings.  At a 
meeting of the DSB on 21 April 2006, the United Stat es informed the Members that the United States 
was in compliance with the DSB Rulings.  At the same meeting, Antigua expressed its disagreement 
with the United States' assertion of compliance. 
 
On 23 May 2006, Antigua and the United States concluded "Agreed Procedures under 
Articles 21 and 22 of the Dispute Settlement U nderstanding Applicable to the WTO Dispute 
United States – Measures Affecting the Cross-Bo rder Supply of Gambling and Betting Services 
(WT/DS285)" (the "Agreed Procedures").  In confor mity with the Agreed Procedures, on 8 June 2006 
Antigua made recourse to Article 21.5 of the DSU by requesting consultations with the United States.  
Subsequent consultations were held in Washington,  D.C., but did not result in a settlement of the 
dispute.  As there was clearly a dispute between the parties "as to the existence or consistency with a 
covered agreement of measures taken to comply w ith the recommendations and rulings" of the DSB 
in the original proceeding, on 6 July 2006 Antigua submitted a request for the establishment of a panel pursuant to Article 21.5 of the DSU, and at its  meeting of 19 July 2006 the DSB agreed to form 
the panel. 
 
On 30 March 2007, the panel issued its report, in which it concluded that the United States 
remained out of compliance with the recommendati ons and rulings of the DSB in this matter. 
 
Pursuant to Article 22.2 of the DSU and paragr aph 7 of the Agreed Procedures, Antigua and 
Barbuda hereby requests authorization from the DSB,  at the next meeting of the DSB to be held 
following the provision of this notice, to suspend the application to the United States of concessions 
and related obligations under the TRIPS and the GATS in an annual amount of US $3.443 billion.  
 
 Antigua and Barbuda Recourse to Ar ticles 22.3(b) and (c) of the DSU 
 
In considering what concessions and obligations to suspend, An tigua and Barbuda applied the 
principles and procedures set forth in Article 22.3 of the DSU, and makes this request pursuant to 
Articles 22.3(b) and (c).  Antigua and Barbuda  is a developing country with a population of 
approximately 80,000.  With a combined landm ass of only 442 square kilometres, Antigua and 
Barbuda is by far the smallest WTO member to have  made a request for the suspension of concessions 
under Article 22 of the DSU and realises the difficulty  of providing effective counter measures against 
the world's dominant economy.  The natural resource s of Antigua and Barbuda are negligible and as a 
result not only are the country's exports limite d (approximately US $4.4 million annually to the 
United States) but Antigua and Barbuda is required to import a substantial amount of the goods and 
services needed and used by the people of the country.  On an annual basis, approximately 48.9 per 
cent of these imported goods and services come from single source providers located in the United 
States.  The imposition of additional import duti es on products imported from the United States or 
restrictions imposed on the provision of services from the United States by Antigua and Barbuda will 
have a disproportionate adverse impact on An tigua and Barbuda by making these products and 
services materially more expensive to the citizens of  the country.  Given th e vast difference between  WT/DS285/22 
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  the economies of the United States and Antigua and Barbuda, additional duties or restrictions on 
imports of goods and services from the United States would have a much greater negative impact on 
Antigua and Barbuda than it would on the United Stat es.  In fact, ceasing all trade whatsoever with 
the United States (approximately US$180 million annuall y, or less than 0.02 per cent of all exports 
from the United States) would have virtually no impact on the economy of the United States, which 
could easily shift such a relatively small volume of trade elsewhere.  
  
Antigua and Barbuda further considers that the circumstances are serious enough to justify the 
suspension of concessions or obligations under othe r covered agreements in addition to the GATS.  
As a result of Antigua and Barbuda's lack of natu ral resources, the bulk of the economy is dependent 
upon tourism and the provision of  banking and other financial services.  Antigua and Barbuda, 
initially with the cooperation of the United Stat es government, looked to the provision of gambling 
and betting services as a way to diversify its economy  and create the growth needed to assist the 
country in moving from a developing to a more advanced status.  Prior to the actions taken by the 
United States to prevent the provision of gamb ling and betting services from Antigua and Barbuda to 
consumers in the United States, it is estimated th at the gambling and betting services sector accounted 
for more than ten per cent of the gross domestic product of Antigua and Ba rbuda and was the fastest 
growing segment of the economy.  Recent efforts by the United States government to further prohibit 
and impede the provision of these services to consumers in the United States have greatly harmed the Antiguan service providers, while domestic providers in  the United States continue to prosper in the 
absence of prohibition and criminal prosecution.  Under the circumstances, the United States' 
prohibition of these services and its non-compliance with the recommendations and rulings of the 
DSB in DS285 forces Antigua and Barbuda to proceed  in the manner requested despite the difference 
in level of development with the United States, the large disparity in their trade relations and despite 
the harsh economic reality affecti ng Antigua and Barbuda which affe cts its ability to exercise its 
rights under Article 22.   
 
In addition to the reasons described above , the suspension of concessions and other 
obligations corresponding to a value of US $3.443 b illion and wholly applied to the importation of 
services from the United States is neither practicable nor effective for various reasons.  First, Antigua 
and Barbuda made no commitments under the sector at issue in DS285, GATS Sector 10.D., "Sporting and Other Recreational Services," in its  Schedule of Specific Commitments under the 
GATS (GATS/SC/2) (the "Antigua Schedule").  Sec ond, with respect to most of the other services 
covered by the Antigua Schedule, as noted above suspension of concessions in the form of higher 
duties, tariffs, fees or other restrictions woul d have a disproportionate impact on the economy of 
Antigua and Barbuda and little or no impact on the Unite d States.  Third, even if Antigua and Barbuda 
were to rely exclusively on a suspension of c oncessions under the GATS, Antigua and Barbuda would 
clearly not be able to recover the full amount of nullification and impairment caused by the 
inconsistent measures. 
 Additionally, in Antigua and Barbuda's view , the United State's continued non-compliance 
renders the circumstances serious enough, within the meaning of Article 22.3(c) of the DSU, to justify 
the imposition of appropriate countermeasures under other covered agreements, given that Antigua 
and Barbuda's gaming industry will continue to suff er serious losses, the government of Antigua and 
Barbuda will be deprived of critical revenue, the people of Antigua and Barbuda will be enjoined 
from participating in much needed employment a nd the overall economy of the nation will continue to 
suffer adverse effects for such time as the United States does not withdraw the measures at issue in 
DS285 or remove their adverse effects.   
 
Summary of Countermeasures  
 
Because the withdrawal of concessions solely under the GATS is at present not practicable or 
effective, and the circumstances are sufficiently serious to justify Antigua and Barbuda exercising its WT/DS285/22 
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  rights under Article 22, Antigua and Barbuda request s authorization to suspend concessions and other 
obligations under the TRIPS.  
For the reasons given above, Antigua and Bar buda intends to take countermeasures in the 
form of suspension of concessions and obligations  under the following sections of Part II of the 
TRIPS: 
 
Section 1: Copyright and related rights Section 2: Trademarks Section 4: Industrial designs 
Section 5: Patents 
Section 7: Protection of undisclosed information 
 
Suspension of Concessions Under the GATS  
 
Antigua and Barbuda may also suspend horizontal  and/or sectoral concessions and obligations 
for the following sector contained in the Antigua Schedule: 
 2. Communication Services  Until such time as the United States brings its  measures into compliance with the rulings and 
recommendations of the DSB in DS285, every year Antigua and Barbuda will notify the DSB of the 
amount and the form of the suspension of concessions if proposed to be different in any respect from 
the preceding fiscal year, as applicable.  
Compliance with Article 22.4  
 
As required by Article 22.4 of the DSU, the le vel of suspension of the above concessions or 
other obligations proposed above by  Antigua and Barbuda is  lower or equivalent on an annual basis to 
the nullification or impairment of benefits accrui ng to Antigua and Barbuda resulting from the United 
States' failure to comply with the DS B's recommendations and rulings in DS285. 
 
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