Voluntary Import Expansions (VIEs)

by Steven Suranovic ©1997-2004

Trade 10-6





A Voluntary Import Expansion (VIE) is an agreement to increase the quantity of imports of a product over a specified period of time. In the late 1980s, VIEs were suggested by the US as a way of expanding US exports into Japanese markets. Under the assumption that Japan maintained barriers to trade that restricted the entry of US exports, Japan was asked to increase its volume of imports on specified products including semiconductors, automobiles, auto parts, medical equipment and flat glass. The intention was that VIEs would force a pattern of trade that more closely replicated the free trade level.
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International Trade Theory and Policy Lecture Notes: ©1997-2004 Steven M. Suranovic
Last Updated on 8/16/03