Piracy Problems Put Paraguay, Bulgaria On U.s. Trade Lists

U.S. Trade Representative Charlene Barshefsky has designated Paraguay, which she called a major export, transshipment, and production center for pirated and counterfeited copyrighted products, as a Priority Foreign Country subject to trade sanctions under the U.S. Special 301 trade law.
The Jan. 16 action follows Barshefsky's decision to schedule an out-of-cycle review in December, due to Paraguay's inadequate anti-piracy actions in both the legislative and enforcement areas.
In a tandem action, the Clinton administration has begun a review to determine whether Paraguay can remain a beneficiary of special U.S. free-trade benefits under the Generalized System of Preferences program.
Barshefsky also added Bulgaria to the Priority Watch List. This means that in three months, if Bulgaria hasn't demonstrated 'dramatic improvements' in anti-piracy enforcement, it will also be added to the Priority Foreign Country category.
According to Eric Smith, president of the International Intellectual Property Alliance (IIPA), Paraguay's problems have 'grown out of control, and (it) continues to damage markets for legitimate product throughout Latin America.' Copyright enforcement in Paraguay, he adds, is 'virtually nonexistent.'
Neil Turkewitz, executive VP, international, at the Recording Industry Assn. of America (RIAA), echoes those concerns, saying that both Paraguay and Bulgaria have 'openly flaunted their legal and moral responsibilities' and 'have permitted piratical activity to enjoy unfettered growth because of government inaction.'
Turkewitz added that he hopes the action 'will serve as a wake-up call to these governments that they should expect significant disruptions in their relationships with the United States, as well as other trading partners and international financial and political institutions, if they fail to bring piracy under control.'
Turkey remains on the Priority Watch List; both Brazil and Hong Kong remain on the lower-echelon Watch List.
The IIPA, RIAA, and other organizations concerned with copyright protection will continue to monitor enforcement policies in those areas.
Despite the lesser designations, all three are still causing U.S. industries to lose money due to piracy losses, the groups say.

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