As predicted last week, the deadline for a settlement in the US / Antigua gambling dispute passed without any kind of resolution.

According to the Antigua Sun, while both sides seem to be agreeable to continue discussions, it doesn't really appear that they are anywhere close to an agreement.

As Antigua's attorney, Mark Mendel, says, "Although there is a willingness to talk, I think we are quite far off from an agreement."

So, it looks like I can stick to the other prediction I made last week, when I said that this dispute will not get settled until Dubya gets out of the White House.

The real interesting twist on this story is how the  implications of this dispute are starting to take on a life of their own.

The legal journal, Daily Report, today published a great analysis of the legal issues surrounding this dispute, and outlined how this originally insignificant little tiff might actually turn out to be one of the most significant and meaningful trade disputes in the history of the WTO, pushing the organization into uncharted territory.

As Simon Lester, president of WorldTradeLaw.net, says, "it's one of the most interesting cases out there."

But I have to disagree with one of the quoted lawyers, John Magnus, who thinks Antigua has taken the wrong path and should have settled long ago.

He seems to be offended that little Antigua would dare to stand up to big America. He is quoted as saying, “The big, big point about this case is, it's the first time the United States just said no. Antigua should have said, 'OK, we got the legal victory,' and then intelligently asked for something that helped it instead of relentlessly sticking with this 'You've got to open your gambling market,' which was completely unrealistic.”

Yes, maybe that's a smarter legal path, and maybe they would win some trade concessions with greater monetary value if they just dropped the matter - but that would also mean that Antigua would essentially be throwing their entire Internet gambling industry under the bus. Not to mention that it would let America completely escape the consequences of its actions and be rewarded for its unethical stance.

And besides, the main reason why this dispute is becoming so interesting and meaningful is because of the very fact that Antigua is not backing down and caving to America.

Antigua is right. They know it. They are sticking to their guns and are demanding that America does the right thing. They don't want to settle for some half-assed deal that lets America off the hook.

Mr. Magnus seems to forget that there is an ancient and mostly ignored concept of "right vs. wrong" that used to be the defining measure of the legal system - before the lawyers of the world co-opted the system and turned it into nothing more than an expensive extortion and settlement machine.

Antigua should not be ashamed of dragging America kicking and screaming into this dispute. Instead, America should be ashamed that they have allowed their arrogance to turn a minor situation into an international trade boondoggle that could harm its reputation for decades.

So I say, "Way to go, Antigua! Take this as far as it can go! Never back down!"