In its submission for USTR's annual Special 301 Report, PhRMA called on the Trump administration to name Canada, Japan, Korea and Malaysia as "Priority Foreign Countries
"--a designation reserved for countries with the worst barriers to market access and most damaging intellectual property practices.
No countries were identified as "priority foreign countries
," a designation that can lead to trade sanctions or other action.
The report serves as a basis for the USTR to designate by the end of this month priority foreign countries
and practices under the so-called ''Super 301'' trade provision for imposing sanctions.
Under Special 301, the USTR must prepare an annual list of Priority Foreign Countries
that deny effective protection of U.S.
economic interests."(62) However, once priority foreign countries are identified, the USTR must commence an investigation of the acts, practices, or policies of those countries.(63) The USTR then has six months to complete the investigation and negotiate a bilateral solution.(64) If the practices continue, the USTR is authorized to "suspend, withdraw, or prevent the application of, benefits of trade agreement concessions to carry out a trade agreement ...; [or] impose duties or other import restrictions on the goods of ...
The USTR stated that since there was significant progress through negotiation, identification of priority foreign countries was not necessary.
PhRMA has recommended that the three nations be named as "Priority Foreign Countries
" by U.S.