First you claim the EU wants to be competitive, then you say it wants to be self sufficient and basically "block everyone out".
Yes. I know this. I live in Argentina, and we're constantly being hostigated by EU and USA. Americans want "free trade agreements" (where they reserve to refuse products from us selectively), and EU demands we "allow importing of their products" (while agreeing they won't be doing the same in return). At least the EU is a bit more honest about it.
I don't mind countries (or "economic zones") protecting their industries and jobs. I just hate being sanctioned for doing the same (Argentina constantly gets sued, even for subsidizing things. And of course, the courts are in the USA or EU, so we get no chance of winning. When we sue back, our disputes are ignored)
You can't call yourself "competitive" if you rely on a closed, subsidized market.