(European Union, not Economic Union. While the E.U. handles economies, it is mostly to prevent another world war from sprouting in that region.)
Any whom, the reason the E.U. has the political standpoints and economic policies it does is mainly to protect the sovereignty of all European nations in its economic sphere. Import prices are expensive because they prefer a self-fueled economy. This does pinpoint issues connected to third world nations trying to put an economic flag up, but they have bigger things on their plates than selling blue-jeans and Dodge Rams.
A third world nation is typically a nation without the ability or support to maintain a political order within itself. This is usually due to civil wars, warlords, dumb leaders, or simple the world presents them as a "horrible place." Many nations classified by the United States as "third world" can actually be considered second, or even first. The problem is all propaganda and political influence.
That is precisely what created the E.U., NATO, and the rusty alliances and treaties holding former Warsaw Pact nations together. It is all political form. The political spheres can be debated, but are generally agreed as follows,
Former Soviet Union, China, NATO, E.U., British, South American, Middle Eastern, and African.
If you have studied politics as much as I, you can tell that nations in those regions or spheres hold nearly the same political stances and constitutions. Though there are little political rebel states such as Israel, and one can consider Japan and South Korea too, there are consistencies.
I, myself do not agree with a majority of these spheres, including NATO and the E.U. as I am a very outspoken Democratic Socialist. BUT, they must exist to reduce friction.
And quite simply the economic policies exist to maintain political spheres.