The United States has kept Brazil on its intellectual property watch list, as released by the U.S. Trade Representative's Office (USTR). The report highlights São Paulo's 25 de Março street as a major market for counterfeit goods. Physical and digital piracy remain central challenges in the country.
The USTR's annual report, released on Thursday (May 1, 2026), places Brazil on the "watch list" of trading partners needing attention on intellectual property protection. Countries like Chile, China, and India are on the more critical "priority watch list." Brazil has appeared on the list for decades, at least since the late 1980s.
The document identifies São Paulo's 25 de Março street, Santos Port, and the Brazil-Paraguay-Argentina tri-border region as key entry points for counterfeit goods. Despite police operations, the USTR criticizes the lack of deterrent punishments and insufficient border agents. Customs enforcement and judicial delays weaken anti-piracy efforts, fueled by smuggling and small parcels.
In the digital realm, streaming is flagged as a threat to creators, sports leagues, and legitimate platforms, with illegal devices and services retransmitting protected content. In July 2025, the Trump administration launched a Section 301 investigation against Brazil, citing 25 de Março and IP protection failures; it may conclude in May 2026.
The report praises a late-2025 Federal Revenue act allowing administrative seizures but questions its effectiveness. It also criticizes the average 9.15-year wait for biopharmaceutical patents (2020-2025) and demands protection for human drug test data.
