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 counterfeit goods continue to be widely available in physical markets as well. The United States continues to encourage enforcement agencies to initiate more criminal prosecutions, and to impose deterrent level sentences in appropriate cases. Vietnam should also clarify its system for protecting against the unfair commercial use, as well as unauthorized disclosure, of undisclosed test or other data generated to obtain marketing approval for pharmaceutical products. The United States looks forward to continuing to work with Vietnam to address these and other issues, including through the Trans-Pacific Partnership negotiations.

Paraguay

The United States continues to monitor Paraguay under Section 306, focusing on Paraguay's implementation of the Memorandum of Understanding on Intellectual Property Rights (MOU) with the United States and on the renegotiation of the MOU, which will expire shortly. Paraguay made progress in 2011 by producing obtaining the first conviction under its new criminal laws, which were strengthened by Penal Code amendments in 2009. Enforcement efforts continued, including efforts by the Specialized Technical Unit, and Paraguay has taken steps to improve coordination among its enforcement agencies. The United States also welcomes the efforts Paraguay has undertaken to improve IPR public awareness. However, serious concerns remain. Piracy and counterfeiting remain rampant in the country, and enforcement efforts internally and at the border have been insufficient to address this problem. Paraguay should intensify its customs actions and improve its cooperation with neighboring countries Brazil and Argentina on cross-border enforcement of IPR. The United States encourages Paraguay to take steps to improve the efficiency of its judicial system so that additional IPR violations can be addressed through the 2009 Penal Code amendments. The United States continues to urge Paraguay to improve its patent protections and to provide an effective system for protecting against the unfair commercial use, as well as unauthorized disclosure, of test or other data generated to obtain marketing approval of pharmaceutical and agricultural chemical products. The United States looks forward to continuing to work with Paraguay to address these and other matters. 51