PHL stricken off intellectual-property ‘watch list’ of US Trade Representative
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- Category: Top News
- 29 Apr 2014
- Written by Catherine N. Pillas
The Philippines has been removed from the Special 301 Watch List of the Office of the United States Trade Representative (USTR) after almost two decades of being on it, a development that could facilitate the country’s membership in the US-initiated Trans-Pacific Partnership (TPP).
With this development, the Philippines no longer faces threats of trade sanctions that Washington is imposing on economies with weak intellectual-property (IP) regime.
The USTR’s Special 301 Report is an annual unilateral evaluation report on various countries’ enforcement and observance of IP laws.
“In recent years, the government has enacted a series of significant legislative and regulatory reforms to enhance the protection and enforcement of IP in the Philippines. Philippines authorities have also made laudable civil and administrative enforcement gains. Although significant challenges remain, the commitment of Philippines authorities and the results achieved merit this change in status,” according to a statement from the USTR.
Trade Secretary Gregory L. Domingo said the development was “a recognition of the positive work the Philippines has done on intellectual property and is one of the string of good news coming from the United States, coinciding with Philippines-United States relations.”
But, at the same time, Domingo also said the Philippines’s status is subject to annual review. “Like anything in life, there is no assurance…but it [removal of the Philippines from the list] is part of a group of positive actions by the US on Philippines issues.”
The trade chief added that with the development, aspiring for membership in the TPP “should be easier as IP issues are a significant part of the TPP agenda.”
The US-led TPP is currently being negotiated among 12 countries and covers about 40 percent of the global economy.
The trade deal is said to contain provisions going beyond the usual trade tariff rate-reduction measures, such as cross-border services trade, standards, labor and environment, and IP rights.
But other barriers remain for the Philippines, such as foreign ownership limitations that are set out in the Constitution and are still hurdles for TPP membership.
“Congratulations to the NCIPR [National Commission on Intellectual Property Rights]. Its holistic approach was very effective in curbing piracy and fighting counterfeits. Enforcement is only the beginning in building respect for intellectual property. The Philippines reinforces its position as the country champion in IP Enforcement in Asean,” Director General Ricardo R. Blancaflor of Intellectual Property Office of the Philippines said, expressing satisfaction over the Philippines’s removal from the watch list.
Blancaflor remains upbeat that the NCIPR would maintain its efforts even with the upgrade, saying, “I am confident the NCIPR will maintain its vigilance in the fight against counterfeits. As long as these unresolved issues are included in building respect for the IP International system, we will endeavor to sustain our current efforts.”
Sought for comment, American Chamber of Commerce and Industry Executive Director David Ebb Hinchliffe lauded the Philippines’s improvement on IPR. He said the development raised the country’s image by another notch.
“It’s very good news. The improving IP regime of the Philippines is an important component of the business climate here, particularly in innovative and high-tech sectors so the decision underscores that the Philippines is becoming a more attractive place for companies and investors to do business,” added Hinchliffe, quoting a message by USTR for Asia Karl Ehler.
According to the Philippine report of the Oxford Business Group, the Philippines has been on the watch list of the USTR for two decades, at times being elevated on the Priority Watch List.
The Quiapo Shopping District was removed from the USTR’s list of notorious markets for selling counterfeit clothing, shoes, watches and software in 2012, the same report noted.
The USTR 2013 Report already noted progress of the Philippines, such as its compliance with the World IP Organization’s Internet treaties, as well as a drop in the filming of movies in theaters. However, despite the improvement, the Philippines remained on the regular watch list in 2013. The regular watch list is the lowest tier identified for deficiencies of IP rights infringement.
The USTR’s Special 301 Report aims to push countries to better adhere to IP rights standards, and issues warning of possible trade sanctions for countries under the Priority Watch List if they are subjected to investigation by the USTR.
The Philippines has been showing a strong image in international regulatory compliance recently as it also received this month a Category 1 upgrade from the United States Federal Aviation Authority (FAA), signifying compliance with international aviation safety standards as set by the International Civil Aviation Organization.
*reposted from Business Mirror news
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