Task 0 Effects of Globalization on national economies by pestle approach 2

2.4 Example of protectionist policies in EU

The EU and the US are pursuing certain protectionist policies, especially in areas such as agriculture. Both the EU and the US are subsidizing elements of their agricultural sector. It involves:

• Tariffs on imports from outside the EU. This makes imports of agricultural products more expensive to help domestic farmers.

• Farmers' home subsidies. This can take the form of minimum target prices. This gives farmers a guaranteed income and makes imports relatively uncomfortable (Pettinger, 2011).