This paper is a variation on Anderson (“Domino Dumping, I: Competitive Exporters”, American Economic Review, Vol. 82, March 1992, pp. 65–83), who asserts that the prospect of voluntary export restraint (VER) protection, inducing firms to dump, can create further protection. Anderson's model, however, seems unable to explain some stylized facts concerning the VER‐regulated trade in textiles and clothing. Our aim is to account for such stylized facts through the introduction of a cost of excess productive capacity attributed to dumping actions. This allows us to describe a new chain of effects related to dumping and VERs: the incentive to dump, induced by the expectation of a VER, can generate the creation of productive excess capacity in the present period, which in turn can increase the incentive to dump in the future.