The Office of the United States Trade Representative (USTR) has retained India on its Special 301 priority watch list, alongside five other countries including China. The USTR stated it will engage with New Delhi, including through Bilateral Trade Agreement negotiations, to address intellectual property (IP) concerns.
Key Findings in the Report
The annual report noted that India remained “inconsistent in its progress” on the protection and enforcement of intellectual property. Vietnam was identified as a Priority Foreign Country, marking the first time in 13 years that a country has been placed in this category. Over the next 30 days, the USTR will decide whether to initiate a Section 301 investigation against Vietnam based on the grounds outlined in the report.
Argentina has been removed from the priority watch list, while the European Union has been added due to US concerns over geographical indications and the recent provisional agreement on the EU General Pharmaceutical Legislation.
India-Specific Concerns
Apart from India and China, the priority watch list includes Russia, Indonesia, Chile, and Venezuela. In India's case, the USTR acknowledged steps taken by the government to strengthen its IP regime but highlighted “a lack of progress” on several longstanding issues raised in previous reports.
“India remains one of the world’s most challenging major economies with respect to the protection and enforcement of IP,” the latest report stated. A primary concern is the Indian Patents Act, which often questions applications filed by American companies, particularly pharmaceutical majors, and provides flexibility to the government. Long pendency of patent applications has been a recurring issue.
Additional Issues Raised
The report also noted: “Stakeholders continue to raise concerns as to whether India has an effective system for protecting against the unfair commercial use, as well as unauthorised disclosure, of undisclosed test or other data generated to obtain marketing approval for pharmaceutical and agricultural chemical products.”
It criticized India’s high customs duties on IP-intensive products such as information and communications technology (ICT) products, solar energy equipment, medical devices, pharmaceuticals, and capital goods. The Trump administration has repeatedly attacked India on tariff issues.
Other familiar concerns include weak enforcement of copyrights and trademarks, as well as high levels of counterfeiting.
