SOURCE: Reuters

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The dispute dates back to 2003, when Antigua complained that a U.S. law allowing only domestic companies to provide online horse-race gambling services discriminated against foreign companies. The WTO found in favor of Antigua.

But Washington, instead of bringing its laws in line with WTO rules, announced in May this year it would withdraw gambling from the services it opened up under a 1994 world trade deal.

Under WTO rules it then had to offer comparable access in other sectors to interested countries.

Earlier this week, the European Union announced it had reached agreement with Washington over access to the U.S. postal and courier, research and development and storage and warehouse sectors in compensation.

That was a blow for European firms such as PartyGaming, Sportingbet and bwin Interactive Entertainment, which had hoped the EU would fight on.

But it was a boost for companies such as Dutch mail carrier TNT, which will be able to compete with U.S. rivals such as FedEx on their home turf.

The United States has reached similar deals with Japan and Canada, but is still negotiating with four other countries -- India, Costa Rica, Macao and Antigua itself.

Since all WTO members have to approve the U.S. proposal to withdraw gambling, Antigua remains in a powerful position.

(additional reporting by Doug Palmer in Washington)

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