For some time we’ve been following the ongoing conflict between the US and the island nation of Antigua surrounding internet gambling. Even before the passage of the most recent anti-gambling law, Antigua had gone to the WTO to complain that the US government’s actions against online gambling were de facto protectionist measures, and thus violated international trade law.

The WTO ended up siding with Antigua, although, quite predictably, the US did nothing to resolve the issue — in fact, things have only gotten worse. Now the WTO is speaking out again, slamming the US government for its failure to abide by the decision against it. Once again, it seems likely that the US will ignore the decision, although that would give Antigua the right to retaliate. One possibility that’s been thrown out there is that Antigua may turn itself into a haven for free music and software and set up some site like allofmp3.com. Of course, the US put pressure on Russia to crack down on that site, as part of the country’s admittance into the WTO, but since Antigua is already part of the organization, the US would have no such leverage. (technodirt)

Several British online gambling firms were forced out of the U.S. market as a result of the The Unlawful Internet Gambling Enforcement Act. EU International Market Commissioner Charlie McCreevy has decided to challenge the UIGEA through the WTO. McCreevey said the US was banning Internet gambling in an attempt to protect their home land gambling interest, which is protectionism, which is against World Trade Organization regulations.

However, due to the WTO’s protracted negotiations to secure a new world trade agreement, McCreevy said he would not rush to file a complaint. There have been no face-to-face talks about the issue with Peter Mandelson, the EU trade commissioner, McCreevy said.

McCreevy has also launched legal actions against several EU countries to tackle obstacles to foreign competition such as France, Germany and Italy. Well done!