The U.S. Trade Representative (USTR) placed Mexico on its priority watch list for intellectual property (IP) rights enforcement on Tuesday, citing ongoing concerns regarding trademark counterfeiting and the protection of pharmaceutical-related IP.
This annual report now includes eight countries on the priority watch list for IP violations, while 18 other countries are placed on the general watch list.
The USTR’s report is significant this year, as it comes amid ongoing negotiations between the Trump administration and various trade partners concerning tariffs and non-tariff barriers. On Monday, U.S. Treasury Secretary Scott Bessent stated that the administration is engaging with 15 to 18 key trading partners about the heavy tariffs announced by President Trump on April 2, which are currently suspended until July 8.
In addition to Mexico, the priority watch list includes China, Chile, Argentina, India, Indonesia, Russia, and Venezuela. Mexico’s move to the higher-priority list reflects unresolved concerns regarding its enforcement of intellectual property rights, particularly issues related to the United States-Mexico-Canada Agreement (USMCA). The U.S. has previously imposed a 25% tariff on Mexican goods in March due to Mexico’s failure to curb the export of fentanyl, much of which is sourced from China. However, trade compliant with the USMCA is exempt from additional tariffs.
Specific issues with Mexico highlighted in the report include inadequate enforcement against trademark counterfeiting, copyright piracy, and the protection of pharmaceutical-related intellectual property. The USTR also noted concerns over pre-established damages for copyright infringement and plant variety protection.
The USTR also kept China on the priority watch list, citing slow progress on IP reforms and concerns regarding forced technology transfers, counterfeiting, trade secrets, online piracy, and copyright law enforcement. Despite commitments made in the Phase 1 U.S.-China trade deal, Beijing has failed to fully implement IP protections.
In contrast, Turkmenistan was removed from the watch list, as there have been no significant concerns raised about IP protection or enforcement in recent years. Vietnam and Brazil remain on the watch list, which also includes countries such as Algeria, Barbados, Belarus, Bolivia, Bulgaria, Canada, Colombia, Ecuador, Egypt, Guatemala, Pakistan, Paraguay, Peru, Thailand, Trinidad and Tobago, and Turkey.
