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PROTECTION OF TRADE: QUOTA AND VOLUNTARY EXPORT RESTRAINTS

INTRODUCTION
In transgress of being members of the General savvy on Tariffs and Trade (GATT)/ argona Trade Organization (WTO), European nations have always use a number of protectionist methods, trusting on tariffs and non-tariff barriers to distribute.
Overview of GATT and WTO:
* The General Agreement on Tariffs and Trade (GATT) was established in 1947. It was created as a provisional system to eliminate trade discrimination particularly through the elimination of quantitative restrictions on trade (quotas), the diminution of tariffs and the elimination of trade discrimination. These were obtained through eight multilateral negotiations that began in Geneva 1947. (Nichola 1998, p. 419). The most recent ones are the Doha attack and Cancun Round.

* The World Trade Organization (WTO) was setup on initiative January 1995. This body is in charge of managing the new global trade rules and reflects a common desire to operate in an dispassionate and more open multilateral trading system for the hit and welfare of all countries. (Piggott & Cook, 2006 p.79)

1. What is protectionism?
Protectionism is defined as policy of protecting domestic industries against foreign competition by agency of tariffs, subsidies, import quotas, or other restrictions or handicaps placed on the imports of foreign competitors.



(Encyclopaedia Britannica)
Types of protection:
* Tariffs - import taxes.
* Quotas - measurable limits on the take aim of imports allowed.
* Voluntary merchandise Restraint Arrangements where two countries make an agreement to limit the volume of their exports to one another over an agree period of time.
* Production subsidies- subsidy from government to reduce cost.
* Export subsidies - a payment to encourage domestic production by lowering their costs.

2. NON-TARIFF BARRIER TO TRADE
These are any barriers to trade that are not tariffs. They are:

3.1 QUOTAS
Quotas are...



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