Voluntary export restraints

Question

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Voluntary export restraints (VERs) are agreements between exporting countries and importing countries to restrict exports from the exporting country to the importing country. They are a form of protectionism and violate the spirit of international trade agreements. While they may not have the same effect as an import ban, they still limit trade and can contribute to higher prices for consumers. While VERs are not necessarily illegal under international trading rules, they are viewed as a restrictive trade practice and are discouraged by many international organizations.

Voluntary Export Restraints