<P> The USTR acts on the information available at the time and can identify new "priority foreign countries" on an annual basis . The Special 301 Sub-Committee of the Trade Policy Staff Committee conducts additional reviews throughout the year for countries that "merit additional monitoring". The Trade Act of 1974 requires that the USTR must start investigations within 30 days of a country being identified as "priority foreign country", unless the USTR concludes that such an investigation "would be detrimental to United States economic interests". Unless the "priority foreign country" is regarded as being in breach of a trade agreement, including the Agreement on Trade - Related Aspects of Intellectual Property Rights (TRIPS), investigations must conclude within six months, with the possibility of a three - month extension . Reasons for extension include "substantial progress in drafting or implementing legislative or administrative measures that will provide adequate and effective protection of intellectual property rights" by the "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 . </P> <P> 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 . </P> <P> The International Intellectual Property Alliance keeps these statistics since 1989 . </P> <Ul> <Li> PFC: Priority Foreign Country </Li> <Li> PWL: Priority Watch List </Li> <Li> WL: Watch list </Li> <Li> Monitoring: Section 306 Monitoring </Li> <Li> Pending: Status Pending </Li> <Li> *: Indicates a change in categorisation </Li> </Ul>

Special 301 is used against countries that fail to protect u.s. intellectual property rights