Utah Representative Has Eyes on the World Trade OrganizationA Resolution is Presented That Would Clarify State's Stance on Internet Gambling |
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A Utah lawmaker has presented a resolution that would both clarify Utah’s stance that its behind the Untied States Trade Representative’s (USTR) decision to fight the World Trade Organization (WTO) on Internet gambling and call for the USTR to publicly release all the details concerning its negotiations with the WTO.
Utah is devoid of gambling, and this resolution is being presented to make sure that the federal government and its trade representation understands just where Utah stands on the issue.
The resolution was introduced by Rep. Sheryl Allen, who chairs the Utah International Trade Commission, which was created in 2006. If passed, letters outlining the resolution’s points would be sent to the WTO, the USTR, Utah’s Congressional delegation, and members of the U.S. Senate Finance and House Ways and Means committees. It also requests that a full report about the negotiations be released to officials from all of the states so lawmakers can understand just what it means for them and their residents.
Through this resolution, Utah is trying to make it clear that it will not allow the federal government to impose laws on its residents that lawmakers feel are immoral or detrimental to the state of Utah, no matter what the WTO has to say about it.
Allen and other officials are concerned that the USTR will bend with the change of Congress and members of the executive branch, and begin to allow online gambling and poker companies that are operated member nations — particularly those who are part of the European Union — to serve customers in the United States.
That concern is despite the USTR’s decision to revise portions of the General Agreement on Trade in Services (GATS) meant to exclude online gambling after Antigua and Barbuda filed a complaint that claimed the U.S. violated WTO agreements by working to prevent U.S. residents from accessing gambling services of companies located there.
WTO panels have sided with Antigua and Barbuda in the complaint, but instead of complying and opening its arms to the online gambling and poker companies, the USTR decided to alter the agreement, which is allowed by WTO rules but never was before done.
Because member countries are allowed to file for damages if the GATS is altered, this cost the U.S. at least $21 million in cash for Antigua and Barbuda (the countries claimed more than $3 billion is lost annually thanks to the U.S.’s stance) and an unknown amount in trade sanctions for the 27-nation European Union, Canada, and Japan, among others.
The USTR claimed that when it signed the GATS in 1995, officials weren’t aware that the portion dealing with “recreational activities” included online gambling. In its arguments, the U.S. claimed existing law — in this case, the Wire Act — should legally exempt the U.S. from this portion of the GATS. The WTO panel didn’t buy it.
But WTO negotiations are expected to resume between the USTR and other member countries in 2009 and beyond now that the Unlawful Internet Gambling Enforcement Act (UIGEA) is going into effect in December of this year.
The UIGEA was passed years after Antigua and Barbuda decided to go after the U.S. on this issue and is still left to be interpreted by the WTO. Online gambling and poker industry organizations are asking their host countries to try to change the U.S.’s stance through WTO negotiations and protocol, and it looks like that will happen.
Utah is the first state that is reiterating to the federal government and the USTR that issues like gambling should be left up to state governments. Although Utah and its officials are vehemently against any form of gambling within its borders, other states, like California, have legislators who are open to the idea of hosting at least an intrastate online poker room.
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