USTR Special 301 Report 2026: Retains India On Priority Watch List; Vietnam Named Priority Foreign Country
In April 2026, the United States Trade Representative (USTR) released its 38th annual 2026 Special 301 Report , classifying countries into Priority Foreign Country (PFC), Priority Watch List, and Watch List.
In April 2026, the United States Trade Representative (USTR) released its 38th annual 2026 Special 301 Report , classifying countries into Priority Foreign Country (PFC), Priority Watch List, and Watch List.
- India was placed on the Priority Watch List alongside 5 countries, while Vietnam was designated as a Priority Foreign Country (PFC), the highest scrutiny category and first in 13 years, potentially triggering a Section 301 investigation.
About USTR Special 301 Report:
Ranking: Countries classified into Priority Watch List are India, China, Russia, Chile, Indonesia, Venezuela and the Watch List are 19 countries including Pakistan, Türkiye, European Union (EU), Brazil, Argentina, Mexico, Canada and others.
Changes: Argentina and Mexico were moved to the Watch List due to improvements, Bulgaria was removed, the EU was added over concerns related to Geographical Indications (GI) and pharmaceutical legislation, and Ukraine’s review was suspended due to the ongoing war.
Section301: Under Section 301 of Trade Act of 1974, USTR may initiate an investigation within 30 days against Vietnam, leading to consultations to resolve trade issues.
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