A dispute between the US and the tiny Caribbean state of Antigua and Barbuda over alleged breaches of world trade agreements caused by America's hard line on internet gambling has entered into settlement negotiations, according to Reuters.

The island state complained to the World Trade Organisation last year that US moves against internet gambling are discriminatory and in breach of international trade agreements that require the US to allow foreign internet companies to offer their services to US citizens.

The US responded that gambling on the internet is different from casino-based gambling, not least because of the difficulty in preventing children from accessing the services. It also said that the restrictions it has put in place do not in fact breach the trade agreements, which allow for exceptions for moral reasons. It also pointed out that when the WTO was set up in 1995, gambling services were excluded from its remit.

But these arguments were rejected by the WTO in early May, when the organisation issued a final report finding that the US was in breach of the WTO rules.

Appeal processes now appear to have been shelved until 23rd August, according to Reuters.

Antigua and Barbuda, with a population of less than 70,000, has an economy largely dependent on tourism, but with a growing market in internet gambling. According to a recent report on Caribbean Net News.com, the country has lost around US$30 million since the US began its attempts to restrict Americans' access to on-line gambling services.

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