USTR retains India on priority watch list on intellectual property rights; Vietnam faces toughest scrutiny

Washington: India is among six countries, including China and Russia, on the priority watch list in a special report released by the US Trade Representative on Thursday that deals with adequacy and effectiveness of trading partners’ protection and enforcement of intellectual property (IP) rights.

The US Special 301 report 2026 lists Vietnam as the Priority Foreign Country (PFC), marking the first time in 13 years that any country is listed in that particular category.

“The PFC identification is reserved by statute for countries with the most egregious IP-related acts, policies, and practices with the greatest adverse impact on relevant US products,” the USTR said.

It said that Vietnam is not entering into good faith negotiations or making significant progress in negotiations to provide adequate and effective IP rights protection.

The six countries on the priority watch list include Chile, China, India, Indonesia, Russia and Venezuela.

Placement of a trading partner on the Priority Watch List or Watch List indicates that particular problems exist in that country with respect to IP protection, enforcement, or market access for US persons relying on IP.

There are 19 countries, including the EU, Turkiye and Pakistan, on the watch list.

“Using all the enforcement tools we have to address unfair trade practices is a top priority,” said Ambassador Jamieson Greer.

“We have rigorously reviewed our trading partners' IP practices and expect to take action where needed to protect American innovators and creators globally," Greer said.

The US first approached Vietnam in 2020 with a proposal for an IP Work Plan to address issues identified in the Special 301 Report, followed by a revised proposal in 2023, the USTR said.

However, Vietnam failed to make meaningful progress on these issues in subsequent bilateral engagement, as well as in recent negotiations for an Agreement on Reciprocal, Fair, and Balanced Trade.

Vietnam’s actions or inactions are causing significant damage to the industries reliant on IP in Vietnam’s market, and in other markets as well, the USTR said.

Within 30 days from the date of this identification, USTR will decide whether to initiate an investigation under Section 301 of the Trade Act of 1974 based on the grounds identified in this report as the basis for Vietnam’s identification as a PFC.

If USTR initiates an investigation, USTR will request consultations with Vietnam and seek to resolve the issues that led to Vietnam’s identification as a PFC.