A variable levy confers benefit on the domestic producer, as with the EU variable levy on grain.

Question

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A variable levy is a type of import tariff that changes based on the world market price of the product. In the case of the EU variable levy on grain, when the world market price is lower than the EU's set price, a higher levy is imposed on imported grain to make the domestic grain more competitive. This confers a benefit on the domestic producer by protecting them from cheaper foreign competition.

A Variable Levy Confers Benefit on the Domestic Producer, as with the EU