Tariff Protection for Domestic Processing

Steps:

• Observe the tariff pattern: 0% on fresh tropical fruit (low barrier to raw imports) vs. 11.3% on canned (high barrier to processed imports).
• Recognize this as tariff escalation, where tariffs increase with processing level to favor local value addition.
• Link to economic policy: Low raw tariffs allow cheap imports for EU processors; high processed tariffs make foreign canned fruit expensive, boosting EU canning industries.
• Conclude the goal protects EU manufacturing by encouraging domestic processing over imported finished goods.

Why B is correct:

• Tariff escalation directly supports EU manufacturing by shielding processors from cheaper foreign processed imports, per trade protection principles.

Why the others are wrong:

• A: Higher tariffs on processed products discourage, not encourage, their imports.
• C: EU imports tropical fruit and lacks a domestic production base for exporting it.
• D: Higher tariffs on processed fruit hinder tropical countries' manufacturing exports.

Final answer: B