If the USTR includes a country on a Special 301 Report watchlist because it has violated a trade agreement, the U.S. government may initiate dispute settlement proceedings at the World Trade Organization (WTO) or any other trade agreement establishing dispute settlement provisions, such as a free trade agreement, such as the North American Free Trade Agreement (NAFTA).
If a country is placed on the USTR's Special 301 Report watchlist for violating a trade agreement, the U.S. government can take legal action through the World Trade Organization (WTO) or any other trade agreement that has dispute resolution provisions, such as NAFTA.