The Voluntary Export Restraint (VER) Agreement with Japan on Automobiles in the 1980s

Abstract

Detroit went through a turbulent period during the I 970s and suffered tremendous financial losses in 1980. The governments of the United States and Japan worked out a VER agreement in 1981 to help Detroit get back on its feet. This article investigates the U.S. motor vehicle industry’s problem in the early 1980s, examines supporting and opposing views on the VER agreement, reports how the VER agreement played out, and offers comments and suggestions.