Final answer:
The EU's trade defence policy includes protectionist measures and strategies to support its global trade position, aiming to shield European markets from unfair practices and promote fair competition.
Trade policy is essential for international commerce, impacting consumer choices, producer competition, and causing trade disputes resolved through organizations like the WTO and agreements like NAFTA.
Over time, trade barriers have decreased thanks to international efforts to promote free trade in the global economy.
Step-by-step explanation:
The EU's trade defence policy encompasses various measures to protect its economy and enhance its position in global trade.
These include actions against unfair trade practices such as dumping, where companies export goods at prices lower than their home market, and subsidies that make it difficult for EU producers to compete. In the context of a globalizing economy, while trade can increase consumer choices, it also creates disparities among producers, leading to the use of protectionist tools like embargoes, quotas, and tariffs.
Additionally, trade policies and treaties can aim to balance out these disparities and incorporate provisions for human rights and environmental protections to avoid a 'race to the bottom.'
Trade policy is also a method for countries to interact, such as the United States with its implementation of NAFTA which removed many trade barriers between the US, Canada, and Mexico.
However, trade policy can also lead to tensions as countries challenge each other's practices, with disputes often settled through organizations like the WTO, EU, or trade agreements like NAFTA.
Importantly, in the latter half of the 20th century, US and global economies generally saw a decline in trade barriers, partly due to international agreements designed to curtail domestic special interest groups and promote free trade.