On April 29, 2025, the United States Trade Representative (USTR) placed Mexico on its Priority Watch List for failing to adequately combat trademark counterfeiting and protect pharmaceutical-related intellectual property, according to the newly released 2025 Special 301 Report.

The 2025 Special 301 Report evaluates over 100 trading partners, placing eight countries – Argentina, Chile, China, India, Indonesia, Mexico, Russia and Venezuela – on the Priority Watch List due to severe IP protection failures or market access barriers. These nations will face heightened U.S. scrutiny and bilateral engagement. Additionally, 18 countries remain on Watch List for ongoing IP enforcement concerns.

Mexico’s shift to the Priority Watch List reflects unresolved issues, including compliance gaps with the United States-Mexico-Canada Agreement (USMCA). The report warns that weak IP enforcement in these markets threatens American innovators and businesses. USTR cited “longstanding and significant concerns,” many of which are tied to Mexico’s implementation of the USMCA.”

Key highlights from the report include:

1. Mexico’s downgrade: Mexico has been moved from the Watch List to the Priority Watch List due to unresolved IP concerns, particularly related to the USMCA. Issues include enforcement against trademark counterfeiting, copyright piracy, and protection of pharmaceutical-related IP.
2. China’s persistent issues: The report underscores ongoing challenges with China, including technology transfer, trade secrets, counterfeiting and online piracy. Despite commitments under the Phase One Agreement, China has only partially implemented the necessary reforms.
3. Indonesia’s enforcement gaps: Indonesia faces significant challenges in IP enforcement, with increased local manufacturing of counterfeits and a shift to online sales. Concerns include border enforcement and pharmaceutical-related IP.
4. Turkmenistan’s removal: Turkmenistan has been removed from the Watch List as stakeholders have not raised significant concerns about IP protection or enforcement in recent years.
5. Global IP issues: The report highlights global concerns such as online piracy, border and criminal enforcement against counterfeiting, and forced technology transfer. These issues continue to impact consumers and legitimate producers worldwide.

“Americans take great pride as the world’s leading innovators and creators,” said Jamieson Greer, the USTR. “Our trading partners must address the concerns identified in the Special 301 Report and stop those stealing the intellectual property of hard-working businesses and individuals. This comprehensive report is a basis for the United States to take trade enforcement action against those not playing fairly.”

Vietnam and Brazil remained on the list, which also includes Algeria, Barbados, Belarus, Bolivia, Bulgaria, Canada, Colombia, Ecuador, Egypt, Guatemala, Pakistan, Paraguay, Peru, Thailand, Trinidad and Tobago, and Turkey.

- Cathy Li