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 urge Mexico to provide its customs officials with ex officio authority and to enact legislation to strengthen its copyright regime, including by implementing the WIPO Internet Treaties and providing stronger protection against the unauthorized camcording of motion pictures in theaters. Prior to 2011, Mexican customs authorities and the Attorney General's Office worked jointly to intercept and prosecute transshipments of counterfeit and pirated goods. Following a shift in policy, however, Mexican authorities now only take action against transshipments of suspected infringing goods if there is evidence of "intent for commercial gain" in Mexican territory, which is very difficult to prove. The United States strongly urges Mexico to revert to the previous policy that allowed for the interception of potentially dangerous counterfeit goods in transit to the United States and other countries. The United States also looks forward to the Mexican Senate's ratification of the Anti-Counterfeiting Trade Agreement. The United States looks forward to continuing to work with Mexico to address these and other issues, including through the TPP negotiations.

Paraguay

USTR is moving Paraguay to the Watch List in 2013. In addition, the United States continues to monitor Paraguay under Section 306. Although Paraguay failed to complete negotiations to renew the expired Memorandum of Understanding on Intellectual Property Rights (MOU) with the United States, the United States is encouraged by Paraguayan officials' recent interest to finalize the MOU, and by Paraguay's creation of the National Directorate of Intellectual Property. The new, autonomous Directorate has the potential to better ensure that law enforcement has sufficient resources and the necessary powers to effectively carry out its mission. Paraguay should also take steps to address its inefficient judicial system. Paraguay still faces rampant piracy and counterfeiting, and should take additional steps to improve enforcement efforts internally and at the border, including by strengthening its customs actions and improving its cooperation with neighboring countries Brazil and Argentina on cross-border enforcement of IPR. 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 undisclosed 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.

Peru

Peru remains on the Watch List in 2013. The United States remains concerned about the widespread availability of counterfeit and pirated products in Peru. The United States urges Peru to devote additional resources for IPR enforcement, improve coordination among enforcement agencies, enhance its border controls, and strengthen its judicial system. The United States encourages Peru to coordinate enforcement and pursue prosecutions under the law that criminalizes the sale of counterfeit medicines. In addition, the United States urges Peru to take steps to implement its obligations under the United States-Peru Trade Promotion Agreement regarding the prevention of government use of unlicensed software, and likewise urges steps to 52