The Argentine government has recently been imposing heavy trade restrictions. Taxes on exports are a major source of revenue for the country. Being a part of the Mercosur customs union, the country cannot independently impose import tariffs but has found other ways to restrict imports. The idea behind this is to "supply the growing domestic market with local labor and production." As a result of these restrictions, the markets for various products have been affected. With BlackBerrys in short supply within Argentina and no possibility of imports, a multinational manufacturer is in fact assembling them in the country's province of Tierra del Fuego, off the coast of South America. The cost thus incurred is estimated to be 15 times higher than what it costs to produce BlackBerrys in Asia.

Which of the following, if true, would be the strongest evidence in support of the restrictive trade policies?

A. The evidence on how efficiently firms can operate under trade restrictions is mixed
B. Many Argentine firms are efficiently operating in markets that were flooded with imported goods before the trade restrictions were imposed
C. Argentina was one of the leading exporters of agricultural products prior to the trade restrictions.
D. Even during the period when India imposed high trade barriers, the Indian GDP grew at an average rate of 4%.
E. There is free movement of manpower and capital across the Mercosur member nations