Thailand’s Place on the US Trade ‘Watch List’: Implications for Investors and Expats

Thailand’s Ongoing Struggle with Intellectual Property Enforcement

For the tenth consecutive year, Thailand remains on the United States Trade Representative’s (USTR) trade ‘watch list’, signaling persistent concerns over the country’s enforcement of intellectual property (IP) rights. While Thailand has made notable progress in updating its legal framework and ramping up enforcement, the USTR’s 2026 Special 301 report highlights ongoing challenges—particularly regarding online piracy and small-scale violators.

Key Developments: Progress and Persistent Gaps

The USTR acknowledges several positive steps by Thai authorities:

• Draft amendments to the Patent Act and Copyright Act, aiming to align with international treaties such as the Hague Agreement and the WIPO Performances and Phonograms Treaty.
• Increased seizures of counterfeit goods, with over 1.3 million items confiscated between October 2025 and March 2026, representing economic damages exceeding 2.3 billion baht.
• Shutting down TV broadcast piracy services and targeted raids on notorious markets, including the high-profile MBK Center in Bangkok.

Despite these efforts, the USTR remains concerned about the prevalence of counterfeit and pirated goods, especially via online channels. The report specifically urges Thai authorities to broaden their focus beyond large-scale distributors to include smaller operators, who continue to fuel the market for illicit goods.

Implications for Investors and Expats

For foreign investors and expats, Thailand’s continued presence on the watch list carries several implications:

• Business Environment: Persistent IP issues can affect investor confidence, particularly for companies in sectors reliant on strong IP protection—such as technology, pharmaceuticals, and entertainment.
• Legal Risks: The ongoing challenge of online piracy and counterfeiting increases the risk profile for businesses operating in or exporting to Thailand. Companies may need to invest more in legal safeguards and monitoring.
• Policy Uncertainty: While the government is actively working to address US concerns, the pace and effectiveness of reforms remain uncertain. This can complicate long-term planning for foreign enterprises.

What’s Driving the US Position?

The US’s stance is shaped by several factors:

• Online Piracy: The proliferation of devices and apps enabling unauthorized streaming and downloads remains a major concern. Rights holders report that criminal proceedings are slow and penalties insufficient to deter repeat offenses.
• Small-Scale Violators: The USTR is pushing for enforcement not just against large-scale operations but also against smaller, often overlooked, offenders who collectively contribute to the scale of IP violations.
• Legislative Gaps: The US is urging Thailand to amend copyright law to address issues like illegal recording in cinemas and to narrow exceptions that allow circumvention of digital protections.

Regional Context and Competitive Position

Thailand is not alone on the watch list; 18 other US trading partners, including the EU, Canada, and Brazil, face similar scrutiny. However, the USTR’s decision to move Argentina and Mexico off the priority watch list, and to elevate Vietnam to a ‘Priority Foreign Country’ for IP violations, shows that progress is possible—and that Thailand’s regional competitiveness could be affected if reforms stall.

Looking Ahead: Opportunities and Challenges

Thai authorities, led by the Department of Intellectual Property, have signaled their commitment to addressing US concerns and ultimately seeking removal from the watch list. For investors and expats, this presents both challenges and opportunities:

• Continued engagement with policymakers and industry groups can help shape reforms and improve the business climate.
• Vigilance in IP protection and compliance is essential for companies operating in Thailand’s evolving regulatory landscape.
• Monitoring progress on legislative amendments and enforcement actions will be key to assessing risk and opportunity in the Thai market.

Ultimately, Thailand’s ability to balance international expectations with domestic realities will determine its future standing—and the attractiveness of its market for global investors and expats alike.

Source: Bangkok Post