Neo-protectionism and the Need for Transparency

WITH tariffs on industrial products being reduced to very low levels, inter-governmental attention began to focus in the early 1970s on non-tariff measures and, indirectly, on VERs and OMAs through discussions on the reform of the GATT provision for emergency ‘safeguard’ protection. Since then VERs and OMAs (which are distinguished from VERs in that trade restrictions are imposed by the importing country) have come to be referred to as ‘informal’ agreements and also as ‘grey area’ measures, for they are thought to fall in the indistinct area between protective devices that are legal under the GATT and those that are illegal.