voluntary export restraint

A voluntary export restraint (VER) is an informal agreement between countries where an exporting country voluntarily limits the quantity of goods it exports to another country. This is often done to avoid more severe trade restrictions or to appease political pressure from the importing country.

VERs can lead to higher prices for consumers in the importing country because the reduced supply drives up costs. They can also benefit domestic producers in the importing country by reducing competition. While seemingly voluntary, these restraints are typically implemented under the threat of more formal protectionist measures, such as tariffs or quotas.12