Argentina Moves Off U.S. Priority Watch List as Landmark Trade Agreement Reshapes IP Landscape

By Estudio Chaloupka

The Special 301 Report — an annual review of intellectual property protection and enforcement conducted by the Office of the United States Trade Representative — serves as a critical mechanism for identifying foreign countries whose laws, policies, and practices fall short of adequate and effective IP protection. In 2026, Argentina's status in that report changed meaningfully: the country moved from the Priority Watch List to the Watch List, reflecting significant progress on longstanding concerns.

The shift followed the signing of the Agreement on Reciprocal Trade and Investment (ARTI) between Argentina and the United States in February 2026. Under the agreement, Argentina made a series of commitments designed to benefit American innovators and creators by strengthening intellectual property protections and prioritizing enforcement against IP theft. The ARTI also includes forward movement on key international IP treaties and steps to address numerous issues previously flagged in the Special 301 Report.

Among the enforcement commitments, Argentina agreed to strengthen criminal penalties — including enhanced fines and prison sentences for counterfeiting by organized criminal networks — and to provide customs authorities with ex officio authority for border enforcement, covering in-transit goods. The agreement also establishes a coordination body for IP enforcement agencies and calls for an assessment of the institutional structure and competencies of judicial and prosecutorial bodies involved in IP cases.

On the civil side, Argentina committed to enacting legislation to support effective civil actions, including injunctions against copyright piracy. Additional steps include increasing raids and seizures at notorious markets and distribution centers, enforcing landlord liability for tenants engaged in the sale of counterfeit or pirated goods, and developing a national enforcement strategy to combat piracy and counterfeiting. Argentina will also compile and publish quarterly IP enforcement statistics, promoting greater transparency and accountability.

On the digital front, Argentina committed to amending its criminal code to address the circumvention of technological protection measures and the removal of rights management information. The agreement also calls for promoting cooperation among internet service providers, rights holders, and other stakeholders, and for investigating and pursuing criminal prosecutions against operators of Argentina-based websites engaged in commercial-scale copyright piracy.

A notable dimension of the ARTI concerns geographical indications and market access for U.S. food producers. Argentina committed to groundbreaking provisions that will preserve current and future market access for U.S. cheese and meat producers who rely on the use of common names. This includes a guarantee that market access will not be restricted due to the mere use of certain cheese and meat terms — a significant win for American agricultural exporters who have faced pressure in markets where common names have been claimed as protected designations of origin by foreign producers.

According to the USTR, the most structurally significant development came in March 2026, when Argentina took a major step under the ARTI with the repeal of overly broad limitations on patent-eligible subject matter for pharmaceutical patents. These limitations had included examination guidelines that automatically rejected patent applications for categories of pharmaceutical inventions considered patentable in other jurisdictions, as well as requirements that manufacturing processes for active compounds be both reproducible and applicable on an industrial scale — conditions that had long been a barrier to innovation protection.

The United States has indicated it will monitor implementation of all ARTI commitments going forward.