Economic Aspects of Voluntary Export Restraints

Abstract

Protectionism has spread since the mid-1980s, and has increasingly taken the form of so-called ‘Voluntary’ export restraints (VERs). The purpose of this chapter is to examine briefly this form of trade barrier and its effects. The focus is on aspects that are peculiar to VERs, and it is assumed that the reader is familiar with the standard analysis of tariffs and import quotas. (An overview of basic principles can be found in Williamson and Milner, 1991, Ch. 9, or Södersten and Reed, 1994, Ch. 10.)