"priority foreign country". If the USTR believes that a trade agreement is being breached the USTR must conclude the investigation within 18 months, or within 30 days after the "dispute settlement procedure" has finished. If the USTR concludes that a trade agreement is being breached, "retaliation actions" may be taken under Section 301 of the Trade Act of 1974. Priority Watch List and Watch List Countries Two non-statutory categories have been created in addition to the statutory category of "priority foreign country", which once identified as such needs to be investigated and if found in breach with a trade agreement is subject to possible "retaliation actions" under Section 301 of the Trade Act of 1974. "Priority Watch List" and "Watch List" countries are identified by the annual Special 301 Report. "Priority Watchlist countries" are judged by the USTR as having "serious intellectual property rights deficiencies" that require increased USTR attention. "Watch List" countries have been identified by the USTR as having "serious intellectual property rights deficiencies" but are not yet placed on the "Priority Watchlist". The USTR can move countries from one list to the other, or remove them from the lists, throughout the year. Historical designations The International Intellectual Property Alliance keeps these statistics since 1989. PFC: Priority Foreign Country PWL: Priority Watch List WL: Watch list Monitoring: Section 306 Monitoring Pending: Status Pending *: Indicates a change in categorisation Consequences In response to countries being included on the Special 301 Report Watchlists the U.S. government may initiate dispute settlement proceedings at the World Trade Organization (WTO) or other relevant trade agreement, including the North American Free Trade Agreement (NAFTA). The U.S. government can also eliminate tariff preferences unilaterally granted, such as the Generalized System of Preferences (GSP). If an USTR investigation concludes that a country has violated a trade agreement Section 301 allows the U.S. government to impose unilateral trade sanctions if the country is not a member of the World Trade Organization (WTO) or any other trade agreement establishing dispute settlement provisions, such as free trade agreements, which are relevant to the alleged violation. Unilateral trade sanctions under section 301 were imposed on December 20, 2001, on Ukraine, which was not yet a WTO member, by imposing a prohibitive tariff on metals, footwear, and other imports because the USTR concluded that the country had failed to enact legislation to enforce copyright in relation to music CDs and