The statute gives the president flexibility to impose trade restrictions, which may take the form of tariffs, tariff-rate quotas, import fees and voluntary restraint agreements
A very interesting issue, discussed in chapter 6, is the analysis of the question of "voluntary export arrangements," often called VERs or VRAs (voluntary restraint agreements
had to resort to a complicated trigger price mechanism to fend off foreign competition and in the 1980s to negotiating voluntary restraint agreements
with our trading partners to avoid pursuing antidumping cases against them.
That means fewer subsidies to farmers in advanced nations, combined with lower tariffs on farm products from the third world and fewer barriers (including "voluntary restraint agreements
") to textile and steel imports from poor nations.
The two popular ways to act out in the 1980s in the face of protectionist pressures were to enter into voluntary restraint agreements
or quota agreements with exporting countries and to launch these Section 301 cases, where we threaten to impose unilateral sanctions [against] countries that don't go our way.
steelmakers' market share, union and management linked arms to pursue a protectionist strategy, persuading government to adopt Voluntary Restraint Agreements
and other measures designed to limit steel imports.
In Saving Free Trade the argument was that the pragmatic free trader should support policies to control transition costs - namely, Trade Readjustment Assistance - and that the then operating voluntary restraint agreements
would only burden the American consumer rather than help in any way to revitalize the sunset industries they were intended to help.
Because he wants readers to make their own informed decisions, they and Ed must grapple with sunk costs, opportunity costs, present value, factor mobility, dumping, tariffs, quotas, voluntary restraint agreements
, the infant industry argument, the national security argument, industrial policy, the rise of the service sector, income inequality, the causes of the Japanese catch-up, how to correctly compare incomes across countries, and many other issues and concepts.
Voluntary Restraint Agreements
(VRAs) are another barrier to trade that the Japanese would like to eliminate.
The program of voluntary restraint agreements
(VRAs) is due to expire September 30, unless it's renewed or modified.
At home the Voluntary Restraint Agreements
with Japan and Taiwan (signed in December 1986) have helped improve the company's share of the domestic machine-tool market.
U.S.X.'s refusal to join its rivals in lobbying for effective trade protection was also part of its strategy: the excess imports leaking through President Reagan's ineffective Voluntary Restraint Agreements
threatened to drown the company's rivals.