Protectionism
A recent trade agreement between the EU and Vietnam subjected Italy's imports on some agriculture food markets such as rice to quotas that limit how much can be imported per year. This was bad for Italy because tariffs on rice were also eliminated which meant that now not only were their imports limited but they also couldn't be taxed so Italy was gaining nothing from the imports. Shown in the graph below the world supply price would drop to P2 without a tariff. This has an effect on domestic producers of rice because when there is a quota on the imports then there is a higher need for domestic production. Domestic producers may need to increase production, which may be possible due to a higher demand for their product, which would hypothetically increase their revenue. Domestic rice producers would also possibly be able to expand and employ more workers which could lower unemployment. Foreign rice producers may not be able to export all of their rice to Italy due to the quota...
