A voluntary export restraint (VER) and a quota are both trade restrictions used to limit the amount of goods that can be imported or exported, but they differ in how they are implemented and who enforces them.
A voluntary export restraint is a self-imposed limit by the exporting country on the quantity of goods exported to another country. This is typically done to avoid heavier restrictions or tariffs imposed by the importing country. For example, if a nation believes that its exports might lead to trade disputes or penalties, it may agree to restrict the volume of its exports voluntarily.
On the other hand, a quota is a government-imposed restriction that sets a limit on the quantity of a specific good that can be imported or exported during a given time period. Quotas are established by the government of the importing country to protect domestic industries from foreign competition by controlling the supply of foreign goods.
In summary, the key difference is that a voluntary export restraint is an agreement made by the exporting country, while a quota is a regulation imposed by the importing country. Both serve the purpose of regulating trade, but the mechanisms and authorities behind them are distinct.