Voluntary Restraint Agreement
VERs are generally implemented for exports from one country to another. VERs have been in use at least since the 1930s and are used on products ranging from textiles and footwear to steel, machine tools and automobiles. In the 1980s, they became a popular form of protection; they did not violate the provisions of the countries in force under the General Agreement on Tariffs and Trade (GATT). Following the GATT cycle that ended in Uruguay in 1994, members of the World Trade Organization (WTO) agreed not to introduce new VERs and to terminate existing ERVs over a four-year period, with exceptions that could be granted to one sector in each importing country. A voluntary export restriction (VT) or voluntary export restriction is a government-imposed limit on the quantity of a class of products that can be exported to a particular country for a period of time. They are sometimes referred to as “export visas.”  When the U.S. auto industry was threatened by the popularity of cheaper, less fuel-intensive Japanese cars, a 1981 voluntary restraint agreement limited the Japanese to export 1.68 million cars a year to the United States, as established by the U.S. government.  Initially, this quota was to expire after three years, in April 1984. However, in the face of a growing trade deficit with Japan and pressure from domestic producers, the U.S. government extended quotas for an additional year.  The ceiling was increased to 1.85 million cars for this additional year and to 2.3 million in 1985.
Voluntary deduction was lifted in 1994.  A voluntary export restriction (VER) is a trade restriction on the quantity of a product that an exporting country is allowed to export to another country. This limit is set by the exporting country itself. As part of the Voluntary Export Restriction (VE), this is a voluntary expansion of imports (VIE) that changes a country`s economic and trade policy to allow more imports by reducing tariffs or reducing quotas. COUNTRY is often part of trade agreements with another country or is the result of international pressure. Voluntary export restrictions fall into the broad category of non-tariff barriers, such as quotas, sanctions taxes, embargoes and other restrictions.