free trade

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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 ?
The trade official further disclosed that the DTI was also on the lookout for another emerging compliance concern involving nonAsean members that were allegedly leveraging on the regional freetrade agreement.
For example, negotiating a fair balance between imports and exports, stabilizing trade deficits, and safeguarding measures for human rights protections in a global marketplace have proved to be perennial issues in the promotion of competitive freetrade.
The market was controlled by the monopoly of the Costa Rican Electricity Institute (ICE) until Costa Rica joined the Central American FreeTrade Agreement with the US (CAFTA) on Jan.
It's all to raise awareness of freetrade deals with developing countries, apparently.
The system would benefit the food giant because its huge lorries were not always able to cost-effectively serve small companies such as take-aways and pubs, which sometimes needed small drops at short notice, said Norman Wemyss, 3663's freetrade sales and business development director.
There are 10 countries in the Southeast Asia freetrade zone: Product produced in Thailand can be exported to nine countries without import tax," Li said.
Carroll and William Little, "Neoliberal Transformation and Antiglobalization Politics in Canada: Transition, Consolidation, and Resistance," International Journal of Political Economy, 31 (Fall 2001), 42; Jim Stanford, "Economic Models and Economic Reality: FreeTrade and Predictions," International Journal of Political Economy, 33 (Fall 2003), 28-49; Stanford, "Back to the Hinterland," www.
Public sphere debates over education, science policy or freetrade are often carried out by privately funded think-tanks whose shadowy financial backers are enough to make one ask whether their agendas are entirely commensurate with the quest for truth.
Bolstered by Chile's freetrade deals with the United States and the European Union (EU), the No.
The chief executive of the Winemakers Federation of Australia has welcomed the striking of a freetrade deal between his country and the United States, claiming that it will bring "long term benefits" in a key market.
The EU officially welcomed the move as part of an approximation of Morocco towards the values of its future trading partners once all negotiations are complete on the Euro-Med freetrade zone.
If the Bank wanted to advocate seriously on behalf of poor countries in the crucial area of trade, it would challenge hypocritical freetrade orthodoxy and bless selective protection of vulnerable industries in the developing world.