[vuxie]

I am unsure what you mean by "the foreign product already paid taxes in the country it was made" in this case. The VAT is done on the buyers side. The foreign product is taxed by the importing entity in the country with the VAT, then by the consumer when they buy the product from the importer. For the consumer there is no difference between the foreign and domestic product and therefore there can be no difference in how attractive it is.