WASHINGTON, Nov. 6 /PRNewswire-USNewswire/ -- European politicians and
industry representatives are calling on E.U. Trade Commissioner Peter
Mandelson to use his visit to the U.S. capital this week to seek the
reversal of illegal discrimination against Europe's financial services,
e-commerce and gaming industries. Mr. Mandelson's meetings will feature
negotiations with U.S. Trade Representative Susan Schwab over compensation
owed to the E.U. and other countries following the U.S. withdrawal of
services trade concessions in the World Trade Organization related to
gaming.
"The United States has engaged in blatantly protectionist behavior.
U.S. companies are entitled to operate in European markets, while we've
been forced out of the United States," said Clive Hawkswood, Chief
Executive of the Remote Gambling Association. "Commissioner Mandelson's
visit is a good opportunity to address discrimination against responsible
European companies. The USTR should be put on notice that the E.U. will not
allow the wholesale denial of trade rights protected by the World Trade
Organization. Brussels should take every conceivable measure to defend the
system of global trade law."
"In the ongoing negotiations on what concessions the U.S. will offer,
it is vitally important that the European Commission extract the maximum
possible benefit for European companies," said Member of the European
Parliament Robert Sturdy. "The U.S. must not be allowed to unilaterally
withdraw a whole market sector from its trade commitments simply because
the growth of that market sector is being driven by European companies. It
is incumbent on the Commission to protect Europe's interests in this case,"
MEP Sturdy said.
The United States has taken draconian steps to seal its domestic
gambling markets from foreign participants, including gaming companies as
well as financial services and information technology companies. This
despite the fact that the U.S. possesses the world's largest gambling
market, and allows U.S. operators to offer certain forms of online gambling
for U.S. operators. "European jurisdictions have already proven the merits
of a regulated environment. We would encourage the development of a
similarly fair and balanced environment in the United States," Hawkswood
added.
The World Trade Organization ruled in 2004 and 2005 that U.S. laws
discriminated against foreign competitors, in violation of global trade
rules and the United States' own ratified commitments to the W.T.O. This
year, after failing to comply with a W.T.O. ruling that U.S. laws be
reformed, the United States announced it would withdraw those commitments,
entitling W.T.O. member countries to fair compensation for the lost market
access. The closure of the $100 billion U.S. gaming market had financial
ramifications far beyond the gaming industry itself, wiping out billions of
dollars from the balance sheets of European institutional investors,
pension funds, and financial services companies as well as affecting the
many supplier industry sectors to the gaming industry.
"It's clear from the W.T.O. rulings that the European Union and other
W.T.O. partners are entitled to full and fair compensation," said Nao
Matsukata, formerly Director of Policy Planning for USTR Robert Zoellick
and now a Senior Advisor for Alston and Bird LLP. "Failure to resolve the
United States' discriminatory practices would lead the W.T.O. to authorize
countries to enact enormous sanctions against the U.S. equal to the value
of the lost market access. This situation could be avoided through a
legislative solution. Frankly, the Congress is already moving in a
responsible manner on this issue, and should take the matter out of USTR's
hands to prevent the further deterioration of U.S.- European trade
relations."
Draft legislation offered by House Financial Services Chairman Barney
Frank (D-MA) in the U.S. Congress would create a national licensing system
for online gambling in the United States. This approach would provide
blanket authority for foreign operators to participate in U.S. state
markets to the extent that those markets are open to domestic providers of
gambling services. "The U.S. Congress is seeking to regulate online gaming
in a competitive and fairly taxed environment that encourages the
participation of responsible companies," said Lode Van Den Hende of Herbert
Smith LLP. "The legislation would create strong consumer protections,
facilitate consumer choice, respond to technological innovation, and
provide durable tax revenues for the future. Since the U.S. Trade
Representative's sole interest seems to be violating the rights of European
industry, it is incumbent upon Commissioner Mandelson to work with the U.S.
Congress to develop a responsible solution."
Several key W.T.O. partners of the United States have already expressed
concern over the broader impact of USTR's decisions on global trade. "At a
minimum, Washington's actions call into question the United States'
credibility in current W.T.O. negotiations for greater trade
liberalization," Matsukata said. "It will be readily apparent to
significant economies such as China, India and Brazil, that the United
States seeks to create one standard for its trading partners, and another
for itself. This risks setting a precedent in the W.T.O. that would
ultimately prove harmful not only to the global, rules-based trading
system, but also to the long term ability of the U.S. to remain
competitive."
Clive Hawkswood, Robert Sturdy, Nao Matsukata and Lode Van Den Hende
are available to speak to news media.
Media Contact
Jonathan Cohen
(203) 722-1858
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SOURCE The Weiser Group
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CONTACT:
Jonathan Cohen, +1-203-722-1858, for The
Weiser Group.
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