What Are Voluntary Export Restraints?
Voluntary export restrictions mean that the exporting country automatically limits the quantity or amount of certain commodities to be exported within a certain period of time under the requirements or pressure of the importing country. The exporting country will stop exporting if it exceeds the limit. [1]
Voluntary export restrictions
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- Voluntary export restrictions mean that the exporting country automatically limits the quantity or amount of certain commodities to be exported within a certain period of time under the requirements or pressure of the importing country. The exporting country will stop exporting if it exceeds the limit. [1]
- Voluntary export restrictions are usually due to pressure imposed by the importing country; therefore, one can consider export restrictions to be "voluntary" only because exporting countries may feel that such restrictions are more substitutable than importing countries may establish.
- In summary, restrictive trade measures usually have two purposes: to protect or improve
- 1. Unilateral
- Changing the competitive nature of industry
- In general, the effect of voluntary export restrictions is to reduce the level of imports, thereby increasing the price of this product in the importing country. When normally low-cost but now restricted foreign suppliers increase their
- The answer to this question depends on whether a voluntary export restriction arrangement achieves its intended purpose of securing and adjusting employment in the protected sector, and if so, at what cost. These goals may not be consistent with each other. For recovery
- The prevalence and inherent shortcomings of voluntary export restriction arrangements, especially their spread and the tendency to divide the trading system into a series of market-sharing arrangements dominated by major trading nations, have prompted some commentators to suggest that voluntary export restriction arrangements It should be controlled, and the adoption of such arrangements should be subject to strict conditions and multilateral supervision. This will encourage greater compliance with the trade rules of international agreements. These observers also point out that the General Agreement on Tariffs and Trade has sanctioned certain situations that violate non-discrimination principles, such as its customs union and free trade zone provisions. Others believe that the principle of non-discrimination is too important and should not be further weakened by the formal approval of voluntary export restriction arrangements. From an economic perspective, non-discrimination means that domestic producers can obtain a certain level of protection at the lowest cost to domestic consumers and the rest of the world. It also protects the interests of smaller trading nations and helps ensure that new exporters enter international markets. Its role in GATT rules makes international trade relations and domestic decision-making very clear and predictable. Based on this view, trading countries should firmly adhere to the principle of non-discrimination when formulating and implementing their trade policies, so that voluntary export restriction arrangements can be controlled.
- This issue is on the agenda of the Uruguay Round of the recent multilateral trade negotiations, particularly in the context of the safeguards provisions of the General Agreement on Tariffs and Trade. The decisions of negotiators can have a significant impact on the future of the international trading system, and it goes without saying that it will also have a significant impact on the economic growth and employment prospects of the member countries of the organization.