In many cases, the end result may be higher costs or poor quality products for consumers. Worse still, a gentlemen`s agreement can be used as a means of promoting discriminatory practices, such as in an “Old Boy`s” network. Despite its informal nature, the breach of a gentlemen`s agreement could have a negative impact on trade relations if a party decides to break its promise. A gentlemen`s agreement can also be called a “gentleman`s agreement” and can be concluded by a handshake or not. In 1908, Canadian Labour Minister Rodolphe Lemieux negotiated an agreement with Japanese Foreign Minister Tadasu Hayashi to limit Japanese immigration to Canada. As part of the gentlemen`s agreement, the Japanese government agreed to voluntarily limit the number of Japanese immigrants who arrive in Canada each year. Similarly, in 1907, Morgan again collaborated with Roosevelt to create a gentlemen`s agreement that would allow the United States. The gentlemen`s agreement was never enshrined in a law passed by the U.S. Congress, but was an informal agreement between the United States and Japan, adopted by unilateral measures by President Roosevelt. It was repealed by the Immigration Act of 1924, which legally prohibited all Asians from emigrating to the United States.  Gentlemen`s agreements have often been concluded in international trade and relations, as well as in most sectors. Gentlemen`s agreements were particularly prevalent at the birth of the industrial age and until the first half of the 1900s, with regulation often falling short of new business practices.
It has been found that such agreements are used, inter alia, to control prices and limit competition in the steel, iron, water and tobacco industries. President Roosevelt, who wanted to maintain good relations with Japan to counterbalance Russian expansion in the Far East, intervened. While the U.S. ambassador reassured the Japanese government, Roosevelt in February 1907 summoned the mayor and school administration of San Francisco to the White House and convinced them to repeal the segregation order and promised that the federal government would tackle the immigration issue itself. . . .