Size Matters: PhRMA’s Special 301 picks for South America.

Every year, USTR publishes the names of countries that do not adequately protect intellectual property rights. (See /ustr/special301) . Among the classifications are the Priority Watch List (PWL) and the somewhat lower status Watch List (WL).

There are 12 countries in South America. In its Feb 21, 2012 submission, PhRMA asked that four be placed on the USTR Special 301 Prority Watch List, and another 3 be placed on Watch List. How did PhRMA decide which countries went on the lists? It turns out that a very good predictor is the size of the economy. Of the 5 countries with the highest GDP in South America, PhRMA wants 4 on the Priority Watch List. Of the 7 countries with the highest GDP, PhRMA wants all 7 on either the PWL or the WL. Of the 5 countries with the lowest GDP, PhRMA did not ask for any to be placed on either the PWL or the WL.