Priority Foreign Country: Ukraine.
Priority Watch List: Algeria, Argentina, Chile, China, India, Indonesia, Pakistan, Russia, Thailand, Venezuela.
Watch List: Barbados, Belarus, Bolivia, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Dominican Republic, Ecuador, Egypt, Finland, Greece, Guatemala, Israel, Italy, Jamaica, Kuwait, Lebanon, Mexico, Paraguay, Peru, Philippines, Romania, Tajikistan, Trinidad and Tobago, Turkey, Turkmenistan, Uzbekistan, Vietnam.
Priority Foreign Country Designation
In this year's Special 301 Report, USTR designates Ukraine a Priority Foreign Country (PFC), marking the first time in seven years that a country is listed in that category. The PFC designation is reserved by statute for countries with the most egregious IPR-related acts, policies and practices with the greatest adverse impact on relevant U.S. products, and that are not entering into good faith negotiations or making significant progress in negotiations to provide adequate and effective IPR protection.[1] While the three specific grounds for Ukraine's designation as PFC are set out below, in general, the 2013 Special 301 review found Ukraine distinct from other trading partners both in its persistent failure to meet its commitments to improve IPR protection, including commitments in an Action Plan negotiated with the United States in 2010, and in the degree of deterioration in IPR protection, enforcement, and market access for persons relying on IPR in Ukraine. Ukraine's actions or inactions are causing significant damage to these industries reliant on those IPR in Ukraine's market, and in other markets as well.
Within 30 days from the date of this designation, the 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 Ukraine's designation as a PFC. If USTR initiates an investigation, USTR will request consultations with the Government of Ukraine and seek to resolve the issues that led to Ukraine's designation as a PFC.
When Ukraine was designated a PFC in the past, it failed to address the grounds for its designation during the following investigation. As a result, Ukraine lost its eligibility for benefits under the Generalized System of Preferences (GSP). Once Ukraine addressed the issues that led to its designation as a PFC, its eligibility for GSP benefits was reinstated.
Ukraine's designation as a PFC in this report is solely based on the IPR-related concerns identified below as the grounds for the designation, and not on any other aspect of Ukraine's international or domestic actions or policies. The Government of Ukraine has publicly noted that the Special 301 process is limited to IPR trade concerns.
- ↑ 119 U.S.C. § 2242 (b). It is important to note that the PFC designation is not reserved for the largest markets; in fact, Ukraine was the most recent recipient of this designation, and the country which has earned this designation for the longest period of time. Ukraine was designated a PFC in 2001 and maintained that status though 2005.
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