Paraguay Shows Promising Progress on Intellectual Property, Remains on USTR Watch List for 2025

By BKM | Berkemeyer

The Office of the United States Trade Representative (USTR) has published its 2025 Special 301 Report, an annual assessment of the protection and enforcement of intellectual property (IP) rights among more than 100 U.S. trading partners. While Paraguay remains on the Watch List this year, the report recognizes the country’s recent efforts and ongoing commitment to improving its IP landscape.

A key milestone in this process was the 2022 agreement between Paraguay and the United States on an Intellectual Property Work Plan. This bilateral roadmap has guided national reforms and enhanced cooperation, with a focus on strengthening institutional capacity, legal frameworks, and enforcement practices.

Encouragingly, enforcement activities have increased in recent years. The Interagency Coordination Center (CODEPI) has played a central role in fostering collaboration across agencies, and the National Directorate for Intellectual Property (DINAPI) has stepped up its efforts. Right holders have noted these improvements, pointing to more frequent enforcement actions and a growing recognition of the importance of IP in Paraguay’s development strategy.

Despite the complexities of enforcement and judicial consistency—challenges that remain across much of the region—Paraguay’s forward momentum is clear. While the number of IP-related criminal convictions declined in 2024, this occurred alongside an increase in enforcement operations, suggesting a system in transition and striving for greater effectiveness.

Ciudad del Este continues to be a focal point in regional discussions on counterfeiting and piracy, and it remains listed in the 2024 Review of Notorious Markets. However, Paraguay’s authorities have shown increasing awareness and responsiveness to the problem, with coordinated efforts to address both distribution and production of counterfeit goods.

Another area of growing importance is the treatment of geographical indications (GIs), particularly as Paraguay advances its role in the European Union–MERCOSUR Trade Agreement. The USTR has encouraged transparency and balance in GI protection, and Paraguay’s engagement in these discussions signals a broader commitment to aligning its IP policies with global standards.