WASHINGTON: The United States on Friday rebuked NAFTA-partner Canada,saying the country was not doing enough to clamp down on counterfeit goods,giving it the same ranking as China and India on a list of intellectualproperty offenders.
In an annual report on intellectual property rights violations by tradingpartners, the US Trade Representative’s office downgraded Canada to the“priority watch list,” which subjects it to a more intense level ofscrutiny.
China has been on the priority watch list for 14 years and India makes arepeat appearance, as the USTR said neither country had done enough toprotect patented and trademarked products.
“The ideas and creativity of American entrepreneurs fuel economic growthand employ millions of hardworking Americans,” USTR Robert Lighthizer saidin a statement.
“This report sends a clear signal to our trading partners that theprotection of Americans’ intellectual property rights is a top priority ofthe Trump administration.”
The report does not trigger any immediate sanctions and comes afterWashington hit China with steep import tariffs on $50 billion in goods forits alleged serial theft of American technology.
The US also filed a complaint against that country at the World TradeOrganization.
There are 12 countries on the priority watch list and another 24 on theless-intense “watch list.” Colombia also was downgraded this year, joiningArgentina and Chile, while Mexico, also a partner in the North AmericanFree Trade Agreement, is on the list of lesser offenders.
The USTR accused Canada of “failure to resolve key longstandingdeficiencies in protection and enforcement,” including failing to policecounterfeit or pirated goods traveling across the border and failing toprosecute violators.
A USTR official told reporters the US had “very serious concerns” withCanada’s intellectual property regime and “we want to see meaningfulchange.”
The notice comes as Lighthizer is holding meetings with his NAFTAcounterparts, Canada’s Chrystia Freeland and Mexico’s Ildefonso Guajardo,on revising the 24-year old free trade pact.
But the official declined to speculate on whether Canada’s downgrade wouldbe discussed in the meetings.
“Part of the reason for Canada’s elevation is very longstanding frustrationwith enforcement and protection issues,” the official told reporters.
China also has longstanding problems with protection and enforcement ofintellectual property rights and “continues to take steps backwards,” theofficial said, including forced transfer of technology from Americancompanies trying to do business there.
“The unfair in pursuit of industrial policy goals place great strain on ourbilateral relationship,” the official said.
The USTR said IP-intensive industries directly and indirectly supported45.5 million American jobs, about 30 percent of GDP and more than half ofUS exports. – APP/AFP