Final answer:
A loophole in anti-dumping laws used for protectionism is bilateral voluntary export restraints (VERs), which bypass standard anti-dumping regulations by limiting export quantities and maintaining higher prices.
Step-by-step explanation:
The loophole in anti-dumping laws that is often exploited by countries for protectionist measures is 'c. bilateral voluntary export restraints (VERs)' which subvert anti-dumping laws. Anti-dumping regulations, as endorsed by the World Trade Organization (WTO), are designed to protect domestic industries from foreign companies pricing their goods below cost. However, the imposition of voluntary export restraints represents a form of agreement where exporting countries agree to limit the quantity of goods exported to the importing country, circumventing the regular anti-dumping process and thus maintaining higher prices or limiting competition. This is seen as a form of protectionism because it restricts trade, often to the detriment of consumers and to the benefit of domestic producers.