Some countries are not allowed to export raw materials for agricultural purposes. For example, it is not allowed to ship a raw banana to the United States. Yet, the United States has a very long list of export quotas that allow us to export bananas.
Let’s say that you’re a farmer in India. You are allowed to buy bananas from the United States, but you cannot ship them to the United States. You also have to pay an import tariff on the bananas you buy from the United States, but you can’t pay the import tariff if you export bananas to the United States.
The trade relationship between the United States and the United Kingdom is in a similar situation as between India and the United States. Here, a banana is a raw product that is exported to the United States and then the United Kingdom. The banana must be processed before being sold. The United Kingdom also has a tariff on a banana, but they don’t impose tariffs on bananas that are exported as well.
This is a very common one. In fact, it is so common that it has its own Wikipedia page (link) that deals with this. In the United States, bananas are not subject to any import tariffs, but a banana that is exported to the United States must be exported as well. This means that the United Kingdom must impose a tariff on a banana that is exported to the United States.
So what is the difference between import quotas and voluntary export restrictions? They both mean that the United Kingdom is going to impose a tariff on a banana that is exported to the United States. The difference is that the United Kingdom is not going to impose a tariff on a banana that is exported to the United States, but it’s going to impose a tariff on a banana that is exported to the United Kingdom.
The United Kingdom should impose a tariff on the banana that is sent to the United States, but it should not impose a tariff on a banana that is exported to the United Kingdom. The United Kingdom should impose a tariff on the banana that is sent to the United States, but it should not impose a tariff on a banana that is exported to the United Kingdom.
You could say that the United Kingdom should not impose a tariff on the bananas that are sent to the United States because it would undermine the whole purpose of Free Trade. A tariffs on bananas coming to the United States would harm the American companies that are dependent on bananas from the United States. On the other hand, if the United Kingdom imposed a tariff on bananas that were imported to the United States, it would be the same as if the United States taxed the bananas that were sent to the United Kingdom.
I agree with the U.K. government that a tariff on bananas (which is currently at 30 percent) is not worth it. However, I think a tariff on bananas that are sent to the United States is more appropriate. What we’re talking about here are mandatory tariffs. This means that we, as consumers, pay for the bananas that are going to the United States. The bananas that are shipped to the United States are not subject to a tariff.
So this is where imported bananas come into the discussion. The United States imports most of its bananas from Brazil. The U.K. imports all of their bananas from Brazil. So why are we doing this? Why are we importing bananas that aren’t subject to a tariff? Because it’s the right thing to do. When we import bananas from Brazil, we allow those bananas to enter the United States at a tariff rate.
This is where the difference between import quotas and voluntary export restraints (vers) comes into play.
