The U.S. Trade Representative (USTR) said the change was a result of stricter intellectual property rules in the United States-Mexico-Canada Agreement (USMCA). The USTR put Canada on the list of the worst intellectual property offenders in 2018. It accused the country of not cracking down on counterfeit goods at the border and enforcing copyright protections online. Canada is still being monitored over concerns of online piracy and protection of pharmaceutical patents. (Canadian Press)

Talking point: Canada was placed on the watchlist amidst the USMCA negotiations. Though the treaty has not yet been ratified, its IP provisions seem to have been enough to change the USTR’s mind. But experts have warned that the same measures that satisfy the UTSR could inhibit Canadian innovation. The agreement extends the length of time for copyright protections, which are beneficial for incumbents and U.S. companies that have been more successful with commercializing intellectual property. A recent report from the Public Policy Forum argued that Canada needs better policy to create “innovation assets” like data and IP. It found that the Toronto Stock Exchange has an intangibles-to-market-cap ratio of 70 per cent, compared to the U.S. S&P 500’s 91 per cent, and 77 per cent for the top U.K. and French public markets.