export restraint agreement

export restraint agreement

a voluntary arrangement between an exporting country and an importing country that limits the volume of trade in a particular product (or products). Specifically, EXPORTS/IMPORTS between the two countries are limited to an agreed number of units, or percentage share of the importing country's domestic sales. An export restraint agreement is thus a protectionist measure (see PROTECTIONISM) designed to shield domestic producers in the importing country from foreign competition and to assist that country's balance of payments. See MULTI-FIBRE ARRANGEMENT.
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The EU, for example, has rejected US calls for a voluntary export restraint agreement in return for removing the new tariffs permanently.

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