Protectionism Shields Domestic Markets from Foreign Competition

Steps:

• Define protectionism as government policies like tariffs, quotas, or standards that favor domestic industries over imports.
• Assess option A: EU safety standards act as non-tariff barriers restricting foreign goods.
• Assess option B: GST increase applies broadly as a consumption tax, not targeting imports specifically.
• Assess options C and D: Bans and tariffs directly limit foreign competition to protect locals.

Why B is correct:

• GST is a neutral value-added tax on all goods (domestic and imported) under Pakistan's tax law, lacking discriminatory intent against imports required for protectionism.

Why the others are wrong:

• A: Safety standards serve as protectionist non-tariff barriers by blocking non-compliant imports.
• C: Import bans are classic protectionist quotas preventing foreign goods entry.
• D: Tariffs raise import costs to shield domestic producers, a core protectionist tool.

Final answer: B