President Donald Trump has a potential opportunity to achieve a significant political and economic victory through the upcoming review of the U.S.-Mexico-Canada Agreement (USMCA). During his first administration, as under secretary of Commerce for Intellectual Property and director of the U.S. Patent and Trademark Office, he was deeply involved in the negotiations of the trade deal that replaced the North American Free Trade Agreement (NAFTA). The USMCA aimed to strengthen intellectual property (IP) protections to prevent foreign rivals from stealing American technologies and designs, reduce free-riding on investments in innovation, and incentivize American companies to expand globally.
One of the most critical concessions was a provision requiring Mexico and Canada to provide 10 years of ‘regulatory data protection’ for cutting-edge biologic medicines, which was excluded from the final agreement due to then-House Speaker Nancy Pelosi’s influence. This provision would have allowed biotech firms to recoup their investments in research and development, potentially reducing drug prices for American patients. However, the provision was stripped from the agreement, which has raised concerns about the protection of American innovators and the long-term impact on the U.S. pharmaceutical industry.
With a new Congress, Trump’s administration may seek to restore these original terms during the upcoming USMCA review. Strengthening IP protections would not only support domestic innovation and job growth but also help ensure fair competition with foreign manufacturers. The administration also has the opportunity to address Mexico’s ongoing failures to uphold its IP commitments, which have led to its placement on the Special 301 Priority Watch List. By reinforcing these protections, the U.S. could continue to lead in critical 21st-century industries and provide more affordable treatments for patients.