The United States Trade Representative (USTR) has identified Vietnam as a 'priority foreign country' in its latest annual report on intellectual property (IP) rights, a designation that could lead to a new trade investigation targeting one of the US's significant trading partners.
The report, released on Thursday, follows a comprehensive review of IP protection and enforcement practices across more than 100 US trading partners. According to the USTR, Vietnam has failed to adequately address longstanding issues related to IP protection and enforcement. The report also cites other nations, including China, for insufficient measures to safeguard US trade secrets.
This marks the first time in 13 years that a country has been placed in the 'priority foreign country' category. The USTR reserves this designation for countries with what it describes as "the most egregious IP-related acts, policies and practices with the greatest impact on relevant US products." The agency will determine within 30 days whether to initiate an investigation under Section 301 of the Trade Act of 1974.
Vietnam's Ministry of Foreign Affairs responded to the designation, with spokesperson Pham Thu Hang stating that the country deals "strictly" with intellectual property violations. In a statement posted on the ministry's website, Hang emphasized that Vietnam has improved its regulatory framework, increased public awareness, and enhanced international cooperation with organizations such as the World Intellectual Property Organization, the US, and other countries. Hang urged the US to make "an objective and balanced assessment of Vietnam’s efforts and achievements in the field of intellectual property protection."
In addition to Vietnam, the report lists China, Chile, India, Indonesia, Russia, and Venezuela as 'priority' countries. Nineteen other trading partners were placed on the 'watch list,' which this year included the European Union. The EU's inclusion was attributed to a recent provisional agreement on pharmaceutical legislation and ongoing digital copyright issues.
US Trade Representative Jamieson Greer commented on the report, stating, "Using all the enforcement tools we have to address unfair trade practices is a top priority. We have rigorously reviewed our trading partners’ IP practices and expect to take action where needed to protect American innovators and creators globally."
The report also notes that Argentina and Mexico were moved from the priority list to the watch list this year, reflecting their efforts to address US concerns regarding IP protection. Bulgaria was removed from the watch list altogether, following enforcement actions and criminal prosecutions related to intellectual property violations.
The USTR's annual review is a key component of US trade policy, serving as a barometer for the government's ongoing efforts to protect American intellectual property interests abroad. The designation of Vietnam as a 'priority foreign country' underscores the seriousness with which the US views IP enforcement issues in its trading relationships.
The coming weeks will determine whether the USTR proceeds with a formal investigation into Vietnam's IP practices under Section 301, a process that could have significant implications for bilateral trade relations.