Voluntary Restraint Agreement

Voluntary Restraint Agreement (VRA) and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Voluntary Restraint Agreement (VRA): An arrangement by which an exporting country takes steps –usually by means of export quotas –to restrain exports that could cause economic dislocation in a key trading partner. VRAs are generally undertaken to forestall action by the importing country against imports that may injure or threaten the position of domestic firms. A VRA is less contractual in nature than an orderly marketing agreement, but with similar economic effects. Under a VRA the importing country does not apply restrictions to enforce the agreement (as under an OMA), nor is compensation involved as may be the case if the importer unilaterally raises tariffs. VRAs are not covered by GA n rules (see grey-area measures).

Hierarchical Display of Voluntary restraint agreement

Trade > International trade > Trade relations
Business And Competition > Competition > Restrictive trade practice > Vertical agreement > Marketing restriction
Trade > Trade > Trading operation > Export
Business And Competition > Competition > Restriction on competition > Voluntary restraint