Export restraint and the new protectionism

About this book

This book explains the origins and the impact of discriminatory trade barriers - especially voluntary export restraint agreements - on the economy and the trading system. While the economy as a whole benefits from the free flow of goods among countries, certain industries are faced with a painful process of adjustment to new competition. Because of rules constraining the use by governments of tariffs and import quotas, new trade barriers that deal with this problem usually take the form of negotiated voluntary export restraint agreements (VERs) or other forms of exporter-controlled restrictions on trade. This form of "new protectionism" is particularly damaging to economic welfare and to the trading system as a whole. . Export Restraint and the New Protectionism provides a comprehensive policy analysis of this important and disruptive development in trade relations. It begins by tracing the history and evolution of export restraint policies. The study then examines the discriminatory and quantitative aspects of VERs, which lead to distinctive welfare and market effects, as well as political repercussions. A separate chapter examines the economic impact of export restraint policies on their most likely targets: developing countries. The study concludes by reviewing developments in the Uruguay Round and by considering the possibilities for trade policy reform both within the GATT and in the process of domestic trade policy formulation.