The EU imports coconut from Mexico and from former colonies in the Caribbean. For the coconut imported from Mexico, a tariff of 10% applies, but for coconut imported from the Caribbean states, no tariff applies to imports constituting up to 10% of all coconut sold in the EU; for additional coconut from the Caribbean, a tariff of 5% applies. Which statement best describes the EU's treatment of imported coconut? Explain Briefly?