USTR Eases Criticism of India in 2015 Special 301 Report
The Office of the U.S. Trade Representative called out a range of countries for intellectual property rights violations on April 30 in its Special 301 Report . China and India were named to USTR’s Priority Watch List, the group of countries that host the largest-scale IP infringement. The 2014 Special 301 Report established an out-of-cycle review for India, and the agency later declined to label India a Priority Foreign Country, the most severe USTR classification for IP violations (see 1410140100).
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USTR again pointed to India for allowing pervasive counterfeit production, notably pharmaceuticals, in the country, but the agency opted against conducting another out-of-cycle review for the country. The report, echoed in remarks to reporters by Deputy USTR Robert Holleyman, said India is making strides in cracking down on IP violations. The Alliance for Fair Trade with India, in an April 30 statement, called on the U.S. government to aim for “concrete improvements and real results.”
Senate Finance Committee Chairman Orrin Hatch, R-Utah, took a sharper tone in response to the Special 301 Report. “Once again, the administration has missed the mark,” said Hatch in an emailed statement. “After squandering the opportunity to crack down on India’s rampant IP violations in their Out of Cycle review last year, they have now issued a report that fails to fully recognize the seriousness of India’s harmful IP policies. This is major step back in America’s efforts to end such unfair trading practices.” Hatch is pushing for provisions in the Finance-approved Customs Reauthorization legislation to help crack down on IP violations globally (see 1504230001).
The USTR report outlines global policy and practice that are undermining trade rules on IP, and the agency pointed to counterfeiting operations in virtually all regions. “Counterfeited goods include semiconductors and other electronics, chemicals, automotive and aircraft parts, medicines, food and beverages, household consumer products, personal care products, apparel and footwear, toys, and sporting goods,” said USTR in the report (here). “Permitting counterfeit and pirated goods and enabling materials to reenter the channels of commerce after an enforcement action wastes resources and compromises the global enforcement effort. Trading partners should also provide enforcement officials with the authority to seize suspect goods and destroy counterfeit and pirated goods during import or export.”
The report also hits thoroughly on copyright concerns and trade secrets. Other nations on the priority watch list are Algeria, Argentina, Chile, Ecuador, Indonesia, Kuwait, Pakistan, Russia, Thailand, Ukraine and Venezuela. The report also placed another 24 countries on USTR’s lower-tier Watch List: Barbados, Belarus, Bolivia, Brazil, Bulgaria, Canada, Colombia, Costa Rica, the Dominican Republic, Egypt, Greece, Guatemala, Jamaica, Lebanon, Mexico, Paraguay, Peru, Romania, Tajikistan, Trinidad and Tobago, Turkey, Turkmenistan, Uzbekistan and Vietnam. USTR said it also plans out-of-cycle reviews on Honduras, Paraguay, Tajikistan, Turkmenistan and Spain based on current IP issues.