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This is a quota imposed from the exportingcountry side instead of the importer.

Are generally imposed at the request of theimporter and are agreed to by the exporter toforestall other trade restrictions.

It is exactly like an import quota where the

licenses are assigned to foreign goverment

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A VER is more costly to the importing countrythan a tariff because what would have berevenue under a tariff becomes rents earned by

foreigners.

According to this, the widespread preferencesfor VERs over other trade policy measures

requires some careful analysis.

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1. Oil price limits import in U.S.A2. Oil price permit import in U.S.A3. A VER is imposed4. The effects of this policy:

a) japanese and U.S.A cars were clearly not perfectsubstitutes

b) japanese industry to some extent responded tothe quota by upgrading its quality and selling

largers autos with more featuresc) the auto industry is clearly not perfectlycompetitive

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South Korea wants that USA accepts a

voluntary prohibition of exporting meatfrom 30 month or older cows, for dreadsof that is infected by the evil of the mad

cows. There were a lot of manifestations in Seul

because the measures that South Koreas

government wanted to apply, which tookSeuls paralyzation.

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This agricultural dispute untied a such

reaction that has reduced to humiliatinglevels the popularity that took thepresident to power only 100 days ago.

The South Koreans Trade secretary, KimJong-hoon, planed to go to USA to talkabout the measure.

Washington already said that it will notrenegotiate his agreement.

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In 2003, the trade of meat with TheUnited States, valued in US$850 annualmillions, was interrupted after the

advertisement of a case of the evil of themad cows.

Though the prohibition was ignored in2006, the restrictions were kept for the 30months or older cows, as well as bonesand other parts that could carry thedisease.

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in The United States producers and

consumers insist that there should bemore safeguards in the industry toguarantee that meat is not contaminated.

Washington threatens to sink the freetrade agreement with Sel unless theyreturn to them his third market of bovinemeat.