Introduction
Under the Trump administration, Mexico faces a new wave of criticism regarding piracy and counterfeiting. Every third day, the Mexican government must address a new complaint from the United States, with the latest issue being insufficient efforts to combat piracy. Mexico has recently been included in a “black list” compiled by the United States Trade Representative (USTR), the highest authority on foreign trade in the U.S., with whom Mexico must renegotiate the USMCA by 2026.
Background on the USTR and its Role
The USTR is responsible for developing and coordinating the overall direction of U.S. international trade, industrial, intellectual property, and related policies. It plays a crucial role in shaping trade agreements and ensuring that other countries uphold their commitments.
Mexico’s Piracy Challenges
Mexico continues to struggle with high rates of copyright piracy, both digital and physical. The USTR’s report highlights that Mexico has not effectively combated those who infringe copyright laws nor compensated victims of such practices. The report, titled the 2025 Special 301 Report, outlines several concerns related to piracy in Mexico.
Digital Piracy and Counterfeit Goods
The USTR points out that Mexico faces significant challenges with digital piracy, including online music and movie streaming, as well as counterfeit products and medications. The report criticizes the slow pace of legal processes and the lack of authority for customs to confiscate or destroy counterfeit goods without first notifying the Mexican Intellectual Property Institute (IMPI) or the Attorney General’s Office.
Lack of Legal Reforms
The USTR expresses disappointment over the failure to publish secondary laws that were intended to strengthen reforms to Mexico’s Intellectual Property Protection Act of 2020. These reforms were meant to bolster efforts against piracy and counterfeiting.
Comparison with Other Countries
The 2025 Special 301 Report examines 26 countries, placing them on two lists: the Priority Watch List for the worst offenders and the Watch List for countries with more manageable issues. Mexico, alongside China, India, Russia, Venezuela, Indonesia, Argentina, and Chile, is listed on the Priority Watch List. Meanwhile, Canada, Colombia, Brazil, and Vietnam are on the Watch List.
First Time on Priority Watch List
This is the first time Mexico has been placed on the Priority Watch List, signaling potential difficulties in renegotiating the USMCA or an opportunity to address a long-standing issue that frustrates the United States while severely impacting thousands of Mexican businesses.
Key Markets Mentioned in the Report
Note: The 2025 Special 301 Report references a January 2025 report on markets selling counterfeit or pirated products openly. This document, created during the Biden administration, specifically mentions three Mexican markets: San Juan de Dios, El Santuario in Guadalajara, and Tepito in Mexico City.
- San Juan de Dios: This market is government-owned in Guadalajara, with no intervention to stop the sale of illegal products.
- El Santuario: Described as a “black market” example for medications in Guadalajara.
- Tepito: Noted for its size (the largest in Mexico) and the claim that no actions were taken to confiscate illegal goods in 2024.
Conclusion
The USTR’s report sheds light on the ongoing challenges Mexico faces in combating piracy and counterfeiting. As the country prepares to renegotiate the USMCA, addressing these concerns will be crucial for maintaining a strong trade relationship with the United States.
