The Japanese auto industry has responded by setting up assembly or “graft” plants in the United States (mainly in the southern states of the United States, where right-to-work laws exist, unlike the Rust Belt states with established unions) to produce mass vehicles. Some Japanese manufacturers that had their transplant assembly plants at the Rust Belt, for example.B. Mazda, Mitsubishi, had to have a joint venture with a Big Three manufacturer (Chrysler/Mitsubishi, which became Diamond Star Motors, Ford/Mazda, which became AutoAlliance International). When the U.S. auto industry was threatened by the popularity of cheaper, less fuel-intensive Japanese cars, a 1981 auto-restraint agreement limited the Japanese to export 1.68 million cars a year to the U.S., as established by the U.S. government. [2] This quota was originally due to expire after three years, in April 1984. However, in the face of a growing trade deficit with Japan and pressure from domestic producers, the US government extended the quotas for another year. [3] The ceiling was raised to 1.85 million cars for this additional year and then to 2.3 million for 1985. The self-restraint was lifted in 1994. [4] Some examples of VER appeared in automobile exports from Japan in the early 1980s and in the 1950s and 1960s for textile exports. VER are generally used for exports from one country to another.

VER have been used at least since the 1930s and have been applied to products ranging from textiles and footwear to steel, machine tools and automobiles. They became a popular form of protection in the 1980s; they have not violated the agreements concluded by the countries under the General Agreement on Tariffs and Trade (GATT) in force. Following the GATT Uruguay Round, which ended in 1994, members of the World Trade Organization (WTO) agreed not to introduce new RECs and to abolish existing duties over a period of four years, with exemptions being granted to a sector in each importing country. The most notable example of REVs is that Japan imposed a VER on its car exports to the United States due to American pressure in the 1980s. Subsequently, ver offered the U.S. auto industry some protection from a flood of foreign competition. However, this relief was only short-lived, as it eventually led to an increase in exports of higher-priced Japanese vehicles and an increase in Japanese assembly plants in North America.