Which of the following is NOT an example of protectionism?

• A. Tariffs (import tax)
• B. Quota (limit vol/value of imports)
• C. Free-trade area
• D. Admin cost/red tape (traceability doc, env./health & safety standards)

Answer: (C)

Protectionism aims to shield domestic producers from foreign competition by erecting barriers to trade. Tariffs raise the price of imports, and quotas restrict how much can come in, both directly raising the cost or limiting access. Administrative costs or red tape, like extra documentation or strict compliance rules, can also act as non-tariff barriers that make importing more expensive or cumbersome. A free-trade area, however, is a group of countries that remove barriers between themselves to encourage trade, while any barriers to outsiders may still apply. So it represents trade liberalization rather than protectionist protection, making it the correct choice for “not an example of protectionism.”