Argentina Pauses Patent Treaty Ratification, Awaiting U.S. Tariff Guarantees

Argentina's government has decided to halt the ratification of the Patent Cooperation Treaty (PCT) in the Chamber of Deputies, awaiting clearer guarantees from the United States regarding tariffs. Although a favorable opinion was secured for the treaty's ratification, the administration is pausing further progress.

The delay stems from both domestic legislative challenges and uncertainty in the U.S. trade landscape. This uncertainty was amplified after a U.S. court ruling cast doubt on aspects of the trade agreement. The PCT was initially slated for ratification by April 30, as agreed upon by Argentine President Javier Milei and U.S. President Donald Trump when they signed the Reciprocal Investment and Trade Agreement (ARTI) in February.

Despite these delays, Washington recently removed Argentina from its Priority Watch List, a list monitoring countries for intellectual property deficiencies. The U.S. administration has concluded its investigation into trade-distorting practices, opting to maintain a 10% general tariff for Argentina, consistent with the ARTI. This decision, provisionally published in the Federal Register, is expected to become final by late July, taking effect in early August.

The Argentine government hopes this resolution will also include the elimination of reciprocal tariffs on 1675 national products across various sectors. Confirmation of this would clear the path for advancing other commitments under the bilateral agreement, including the PCT ratification. The government's cautious approach is influenced by the ongoing judicial scrutiny in the U.S., where the Supreme Court has previously ruled against tariffs imposed by Trump, citing exceeded executive powers.