Asked by Remy
Why would the U.S. impose a voluntary export restraint on Japan for textiles instead of using a import quota or tariff?
Why indeed. This is as much an international political question as a question in economics. Quota or tariffs tend to apply to all nations rather than a single nation. Second, the US is a participant in GATT and WTO (international trade agreements), which restrict tariffs and quotas. Third, what is Japan getting for agreeing to voluntary restraints?
Why indeed. This is as much an international political question as a question in economics. Quota or tariffs tend to apply to all nations rather than a single nation. Second, the US is a participant in GATT and WTO (international trade agreements), which restrict tariffs and quotas. Third, what is Japan getting for agreeing to voluntary restraints?