Dominica warns the United States over Antigua WTO dispute

Dominica through the DSB appealed to the United States to "make one last effort at resolving the matter and avoiding unpredictable consequences," given that the measures would be unprecedented. It warned the US that failure to achieve progress in resolving the matter would leave Antigua and Barbuda with no choice but to impose the compensatory measures granted by the WTO on January 28, 2013, involving the sale of US-copyrighted items without the payment of rights usage.

After voicing its concern, Dominica’s statement was supported by Trinidad and Tobago, which was speaking on behalf of CARICOM countries Barbados, Haiti, and Jamaica.

Antigua’s ongoing dispute with the United States goes back to 2003 when the US passed legislation prohibiting the provision of overseas online gambling services, which effectively shut down the country’s lucrative online gambling industry. It then took its complaint to the WTO in 2004 arguing that passage of the US legislation was contrary to Antigua’s commitments under the General Agreement on Tariffs and Trade (GATT).

The WTO agreed with Antigua ruling in its favor. However, Antigua subsequently argued that given the small level of trade between the two countries and excessive delays by the US it was difficult to be adequately compensated . It therefore went back to the DSB to seek alternative means of compensation and on January 28, 2013 the DSB authorized the “suspension of concessions and obligations to the United States in respect of intellectual property rights.”

Under the agreement, Antigua could sell US copyrighted material worth US 21 million a year without paying for the rights to do so. The US reacted angrily calling the WTO compensation package "theft of intellectual property" and "government-authorized piracy."

It also warned Antigua that if it proceeded with these actions it could greatly threaten the country’s ability to attract foreign direct investment. Given the potential backlash, Antigua has been reticent to go ahead with implementing the latest ruling, but it is clear from Dominica’s statement to the DSB on behalf of that country that it may decide to proceed if the US fails to quickly come up with alternative compensation.