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Adoption of compliance panel report  

DS285: US — Measures affecting the cross-border supply of gambling and betting services: recourse to article 21.5 of the DSU by Antigua and Barbuda

The DSB adopted the compliance panel report.

While welcoming the results of the report, Antigua expressed concerns on recent developments overshadowing the report conclusions Antigua referred to the announcement made by the US on 4 May 2007 about its intention to modify its services concessions and exclude gambling and betting from its initial agreement (see GATS article XXI and S/L/80). Antigua argued this was not a suitable tactic in dispute resolution. Antigua encouraged other WTO members to press claims for compensation to make the process as difficult as possible for the US.

The US confirmed it initiated a procedure to bring the US GATS obligations into conformity with its public policy on gambling. The US explained that gambling was viewed as a public order and public morals issue and was therefore regulated. The US said this was the reason it never intended to cover gambling in its schedule which was insufficiently clear.

Brazil and India expressed systemic concerns about the implications for the dispute settlement system of the GATS Article XXI process as initiated by the US. They did not question the right of the US under this provision, but emphasised that the solution preferred by the DSU was the removal of the measure which had been found to be WTO-inconsistent. A successful result of the Article XXI process, according to Brazil and India, would depend on the US ability to contemplate other members' right to compensation.

The EC stated that given the US was not willing to bring its legislation in line with its GATS commitments, the use of GATS article XXI was the right procedure.

 

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Adoption of compliance panel and Appellate Body reports  

DS207: Chile — Price band system and safeguard measures relating to certain agricultural products: recourse to article 21.5 of the DSU by Argentina

The DSB adopted the Appellate Body (AB) report and the panel report as amended by the Appellate Body. The AB report follows the line of the panel and stated that Chile had not complied with the initial DSB ruling.

Argentina said it was confident that Chile would terminate the measure that is incompatible with WTO principles.

Chile said it acted in good faith when making the initial changes to the measure under examination.

  

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Next meeting 

The next DSB meeting will take place on 20 June 2007.