If the tariffs on the textiles, apparel items and footwear mentioned in the Application were replaced by equivalent voluntary export restraints (VERs), who would benefit the most?

Question

Quizplus · Accepted Answer

The foreign manufacturer would benefit the most with voluntary export restraints (VERs) as they can limit their export quantity to the US market and maintain higher prices due to restricted supply. VERs are essentially quotas agreed upon by the exporting country voluntarily. Therefore, the foreign manufacturer can gain the most benefit from VERs, unlike tariffs that increase the cost of imported goods and benefits the domestic producers. Low-income and high-income consumers may have to pay higher prices due to the restricted supply, and the US government may not see significant benefits from this arrangement.

If the Tariffs on the Textiles, Apparel Items and Footwear