free trade

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Related to Free-trade: Trade liberalization

Free Trade

The state in which there are few or no tariffs or other trade barriers discouraging international trade. For example, a country with a free trade policy does not subsidize favored industries in order to make them less expensive compared to international competitors. Proponents of free trade argue that it is more economically efficient and helps consumers by promoting competition to keep prices low. Critics contend that free trade is detrimental to local jobs, especially in the developed world.

free trade

the EXPORT and IMPORT of goods and services between countries totally unhindered by restrictions such as TARIFFS and QUOTAS. In general, free trade leads to a higher level of economic welfare in so far as it favours the location of economic activities in those countries best suited to their production, resulting, through the trade mechanism, in worldwide consumption gains in the form of lower prices and greater product availability. See INTERNATIONAL TRADE, TRADE INTEGRATION, WORLD TRADE ORGANIZATION.

free trade

the INTERNATIONAL TRADE that takes place without barriers, such as TARIFFS, QUOTAS and FOREIGN EXCHANGE CONTROLS, being placed on the free movement of goods and services between countries. The aim of free trade is to secure the benefits of international SPECIALIZATION. Free trade as a policy objective of the international community has been fostered both generally by the WORLD TRADE ORGANIZATION and on a more limited regional basis by the establishment of various FREE TRADE AREAS, CUSTOM UNIONS and COMMON MARKETS.

See GAINS FROM TRADE, EUROPEAN UNION, EUROPEAN FREE TRADE ASSOCIATION, TRADE INTEGRATION.

References in periodicals archive ?
What does this tell us about investment and free-trade agreements?
Hiranuma noted that besides Japan, China, Taiwan and South Korea also have yet to make free-trade pacts.
Bush has been less of a free-trade president than Clinton has been, arguably," says Ian Vazquez at the Cato Institute in Washington.
Raffo estimates that a long-term free-trade deal with the United States could increase textile and garment exports by as much as 25% annually.
After the free-trade pact goes into force, Barrera says, Diana will be able to, carve a supermarket niche of Central American-flavored snacks with U.
In addition to this remarkable emerging recovery, recently elected populist politicians are actually accelerating free-trade initiatives in the Americas.
Free-trade debates on the streets of Central Americas capitals sound like tales of the chupacabra, the mysterious, dog-like beast that can fly and drains livestock of their blood, wreaking financial havoc on pour campesinos.
Rich and poor may have found a blueprint after Costa Rica and Canada in April inked a free-trade pact with innovative arrangements to accommodate their differences.
Mercosur's unity--or disunity--could have far-reaching implications for the future of hemispheric free-trade.
When the free-trade agreement was signed in 1993, only an estimated 6% of that hazardous waste was treated and disposed of safely.
The figures were announced by Director-General of the Free-Trade Zones Establishment Mohammad Katkout, who compared them to the SYP 1.
Republican support for free trade becoming anemic: A new poll by the Pew Research Center found that support for free-trade agreements among Republicans had fallen to 28 percent, from 43 percent in November 2009.