Antigua is a small Caribbean nation. When it began hosting gambling websites, its economy thrived, boosted by U.S. gamblers. But when the United States started criminally prosecuting Internet gambling, Antigua’s profits plummeted. The United States had the right to take this step, but it had to do so consistently—treating foreign and domestic sites the same. The problem was that it allowed Internet betting on horseracing within its borders.

Antigua challenged U.S. gambling laws in the WTO, arguing that they discriminated against foreign betting services. Both the United States and Antigua were members of GATS, under which each agree to free trade (including nondiscrimination and national treatment) in online services.

A WTO panel ruled that the United States’ inconsistent gambling laws violated GATS and ordered that it bring them into compliance. Two years passed and the U.S. government did not act.

Frustrated, Antigua requested permission from the WTO to suspend its obligations to the United States under TRIPs. This suspension would mean that Antigua could freely use, reproduce, and distribute any U.S.-copyrighted, trademarked, or patented works—a real blow to the U.S. entertainment, 

pharmaceutical, and technology industries. The United States objected and submitted the matter to a panel of WTO experts. 

Question:

1. When one WTO Member refuses to comply with a WTO ruling, can the injured Member retaliate by suspending its duties under another treaty?

2. When a complaining party wishes to seek suspension in another agreement than that in which a violation was found, what must it prove?

3. What is the smallest WTO member?
4. What does the acronym WTO stand for?