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 A most important accomplishment was the successful conclusion of the U.S.-China IPR Enforcement Agreement, signed on February 26. This agreement commits China to strong measures to curb piracy -- particularly in computer software, audiovisual works, patented works and trademarks. The signing of the agreement concluded an eight-month section 301 investigation into China's IPR enforcement practices.

Very recent additional progress included implementation of what Kantor expects to be much improved patent protection in Argentina; new bilateral understandings with Bulgaria on copyright and Singapore on patents, as well as a commitment announced by Indonesia to strengthen copyright enforcement, particularly for computer software. Kantor also took careful note of Turkey's recent commitment to the EU to implement modern IPR protection. Noting longstanding concern about the lack of adequate intellectual property protection in Turkey, Kantor stated that the USTR will monitor this development closely.

Kantor pointed out that many other trading partners also made progress this year in resolving longstanding problems. Over the past 12 months, new copyright laws or amendments were enacted or brought into effect in several countries including Australia, Costa Rica, India, Panama, Poland, New Zealand and Thailand. New patent legislation was enacted in Mexico and Colombia. New trademark legislation became effective in the Ukraine. Improved enforcement procedures were implemented in Italy, Korea, Saudi Arabia, Taiwan and the UAE. Bahrain, Paraguay, Poland, Russia and Saudi Arabia joined international IPR conventions. Trinidad and Tobago signed a bilateral IPR agreement with the United States and an understanding with Japan was reached regarding certain patent issues.

Kantor noted that further progress can be expected as a result of the coming into effect this year of the WTO's TRIPs Agreement (Agreement on Trade-Related Aspects of Intellectual Property rights). "The United States has now fully implemented its TRIPs obligations, in many instances in advance of the required implementation date of January 1, 1996. We look to other countries to do the same. We will continue to press all WTO member-countries to implement their TRIPs obligations in the shortest possible time."

Given the substantial recent progress noted above, Kantor announced that there will be no priority foreign country designations at this particular time. However, he stressed: "I have intentionally increased the number of out-of-cycle reviews that will be conducted this year." Through the "out-of-cycle" review process, Kantor plans to review progress in certain countries during the course of the year, rather than only at the end of April when the annual review occurs. Kantor further stressed that the 1974 Trade Act permits USTR to make additional identifications at any time that the facts warrant.

Kantor announced placement of eight trading partners on the "priority watch list." Five of these countries -- Brazil, Greece, Japan, Saudi Arabia, and Turkey will be subject to review