NEW DELHI, May 1: India on Thursday "regretted" the Clinton administration's decision to put the country on its "priority watchlist" under the special 301 provision for New Delhi's failure to provide protection to American intellectual property rights.

A spokesperson told The Financial Express that both India and the US were members of the World Trade Organisation (WTO), which provided a forum for discussing the issue.

He said cooperation between the two countries on trade and economic matters had escalated in the recent past.

"It is hoped that the US recognises that issues dealt with in the World Trade Organisation are best resolved on a multi-lateral basis," the spokesperson said.

Special 301 is a provision under the Omnibus Trade Competitiveness Act of 1988 of the US.

The provision deals with identification of countries which in United States' perception deny adequate and effective protection of intellectual property rights.

The US has been following the practice of placing countries under three different lists: watch list, priority watch list and priority foreign country on grounds of inadequacy of protection given to American intellectual property.

India was first brought under the priority watch list in 1989 and was upgraded as a priority foreign country in April 1991. Subsequently, in 1994, it was moved down to the priority watch list.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.