The year 2019 saw a lot of changes in the global economic landscape, and one of the most significant areas of change was in the realm of international trade. With the rise of protectionism and nationalist policies, many countries faced challenges in maintaining their commitments to global trade agreements. In this article, we will take a closer look at the 2019 report on compliance by major trading partners with trade agreements and what it means for the global trade community.
First, let`s define what we mean by « major trading partners. » According to the World Trade Organization (WTO), the top ten economies in terms of merchandise exports in 2018 were China, the United States, Germany, Japan, the Netherlands, South Korea, Hong Kong, France, Italy, and the United Kingdom. These countries are often referred to as the « major players » in the global trade game.
Now, let`s turn our attention to the report on compliance with trade agreements. The report in question is published annually by the United States Trade Representative (USTR) and is known as the Special 301 Report. The report identifies countries that the U.S. government believes have inadequate intellectual property (IP) protections or market access barriers that unfairly disadvantage American businesses.
In the 2019 report, the USTR identified 36 trading partners that warrant “Special 301” attention. These countries were grouped into four categories:
Priority Foreign Countries: These are countries that have “the most onerous or egregious acts, policies, or practices” that have a significant negative impact on U.S. IP rights holders.
Priority Watch List: This category includes countries that have serious IP deficiencies or market access barriers that require increased attention from U.S. officials.
Watch List: Countries in this category have IP deficiencies or market access barriers that are less significant than those on the Priority Watch List but still require attention.
Section 306 Monitoring: This category includes countries that have made commitments to improve their IP protection or market access but have not yet fully implemented those commitments.
China was again identified as a Priority Foreign Country, while India was moved from the Priority Watch List to the Watch List due to some progress made in IP protection. Other countries on the Priority Watch List included Argentina, Chile, Indonesia, Russia, Thailand, Ukraine, and Venezuela.
So, what does this report mean for the global trade community? For one, it highlights the ongoing challenges that countries face in maintaining their commitments to global trade agreements. It also underscores the importance of strong IP protections and policies that promote fair trade practices.
For businesses operating in the U.S. or doing business with U.S. partners, the report can be a useful tool for assessing the risks and opportunities of trading with specific countries. It can also serve as a basis for advocacy efforts to promote stronger IP protections and market access.
Overall, the 2019 report on compliance by major trading partners with trade agreements serves as a reminder that the challenges of global trade are ongoing and require vigilance from all stakeholders. By working together to address these challenges, we can build a more equitable and prosperous global trade system for all.