PROCEDURAL BACKGROUND

On 20 April 2005, the Dispute Settlement Body (“DSB”) adopted the Appellate Body Report (WT/DS285/AB/R) and the Panel Report (WT/DS285/R) as modified by the Appellate Body Report in the dispute on United States – Measures Affecting the Cross-Border Supply of Gambling and Betting Services. In its recommendations and rulings, the DSB requested the United States to bring its measures, that were found, in the Appellate Body Report and in the Panel Report as modified by that Report, to be inconsistent with its obligations under the General Agreement on Trade in Services (GATS), into conformity with its obligations under that Agreement.

On 19 May 2005, the United States informed the DSB that it intended to implement the DSB's recommendations and rulings in this dispute in a manner that respected the United States’ WTO obligations, and that it had begun to evaluate options for doing so. The United States indicated that it would need a reasonable period of time in which to do this and that it stood ready to discuss this matter with the Government of Antigua and Barbuda (“Antigua”), in accordance with Article 21.3(b) of the DSU.

On 6 June 2005, Antigua informed the DSB that Antigua and the United States had been unable to agree on a reasonable period of time. Consequently, Antigua requested that the reasonable period of time be determined through binding arbitration pursuant to Article 21.3(c) of the Understanding on Rules and Procedures Governing the Settlement of Disputes (“DSU”). On 30 June 2005, the Director-General appointed Dr. Claus-Dieter Ehlermann to act as Arbitrator under Article 21.3(c).

In the Arbitration Award, which was circulated on 19 August 2005, the Arbitrator determined that the “reasonable period of time” for the United States to implement the recommendations and rulings of the DSB was 11 months and 2 weeks from 20 April 2005, which was the date on which the DSB adopted the Panel and Appellate Body Reports. The reasonable period of time was therefore to expire on 3 April 2006.

In a first Status Report dated 6 March 2006, the United States informed the DSB that the “US Administration, in consultation with the US Congress, has been working on appropriate steps to resolve this matter”.