US agrees on compensation deals over online gambling

The US agreed to compensate the European Union, Canada and Japan as part of a process to maintain an internet gambling ban that has been ruled illegal by the World Trade Organization, an Associated Press report said.

The Associated Press report said the 27-nation EU received trade concessions in mail services and warehousing as well as US market opportunities for European companies offering testing and analysis services.

But the office of the US Trade Representative said the agreement did not liberalize any new services to foreign competition.

'The agreement involves commitments to maintain our liberalized markets,' spokeswoman Gretchen Hamel was quoted by the report as saying.

That contrasted with claims by EU officials that the deal would affect how Germany's DHL, the express and logistics division of Deutsche Post World Net AG, competes with US-based companies FedEx and UPS.

In any case, the overall trade valuation of the package will fall far short of the $100 billion European online gaming sites had claimed the US owed, the report said.

EU officials could not immediately say how much the deal was worth, the report added.