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What Is The Voluntary Export Restraint And How Are The Import Quotas Used To Restrict The Import Into The Country?

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Nouman Umar answered
It is a restriction which is imposed by different governments of the countries on the imports of the goods into the country. This barriers or restrictions are imposed by the government to the people who are given the import licenses. For example the United States has a quota on cheese imports. The government has allowed only few companies for the import of cheese every year to the maximum amount of cheese they can import in the country and other firms are being restricted up to certain levels. In some cases the rights to sell is given directly to the governments of exporting countries. This is the case for sugar and textile imports in the Untied States.

A special voluntary export restrain is introduced by the exporting countries by which trade exports are imposed with some limits on the request of the government of the importing country. An example was seen in the year 1981 that the restrictions on the export were levied by the government of the Japan to export Autos in the United States.
A response to direct pressure from the United States government, this voluntary export restraint limited Japanese imports to no more than 1.68 million vehicles per year. The agreement was revised in 1984 to allow 1.85 million Japanese vehicles per year.

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