Voluntary export restraint agreements are ...

• A. They are tariffs set by the importing country
• B. Export visas issued unilaterally by importer
• C. VER agreements set by the exporting country at the importer’s request and preferred to tariffs/quotas
• D. Quotas set by international bodies

Answer: (C)

Voluntary export restraint agreements are a negotiated cap on the amount of a good that can be exported to a specific country. The exporting country agrees to limit shipments in response to a request from the importing country, making the restraint effectively voluntary for the exporter. This arrangement is often preferred to tariffs or formal quotas because it allows the exporting country to manage the restriction through diplomacy, provides more predictability for both sides, and can avoid some of the backlash that higher tariffs or rigid quotas might provoke. It is not a tariff imposed by the importing country, not an export visa system, and not something set by international bodies.