The U.S. Trade Representative’s office on Friday put Canada on its “priority” watch list for intellectual property rights protection, along with countries such as China, Russia, and Venezuela.
The downgrading comes as the U.S. and Canada are struggling to conclude talks to renegotiate the North American Free Trade Agreement.
The report, which is USTR’s annual survey of property rights concerns under section 301 of the Trade Act, said Canada had poor border enforcement because its customs agents lacked the authority to inspect or detain suspected counterfeit or pirated goods, and said pharmaceuticals is a key area of concern. Canada had previously been on USTR’s lower-level intellectual property “watch” list.
“The United States remains deeply concerned that Canada does not provide customs officials with the ability to inspect, detain, seize, and destroy in-transit counterfeit and pirated goods entering Canada destined for the United States. As the United States has emphasized, this failure permits counterfeit and pirated goods to enter our highly integrated supply chains,” the report said.
The USTR currently has 12 countries on the priority watch list countries and another 24 on a watch list.
The Section 301 report has also been used to justify recent tariffs directed at China. The USTR noted that China is on the priority list for the 14th consecutive year, due to its “coercive technology transfer practices, range of impediments to effective IP enforcement, and widespread infringing activity.” The U.S. threatened to hit China with tariffs on $50 billion worth of goods, mostly manufactured ones. China has threatened an equal response, mostly hitting agriculture, and prompted the Trump administration to threaten tariffs on another $100 billion worth of Chinese goods.
“The ideas and creativity of American entrepreneurs fuel economic growth and employ millions of hardworking Americans,” said U.S. Trade Representative Robert Lighthizer. “This report sends a clear signal to our trading partners that the protection of Americans’ intellectual property rights is a top priority of the Trump administration.”
