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 ?
This sad picture of external sector performance calls to revisit the trade liberalisation programme, further rationalise tariff structures and eliminate regulatory duties.
Technology transmission channels that includes export of manufacturing goods and import capital goods and trade liberalisation channel that enhance growth through the creation of incentives for governments to increase economic efficiency and growth through the removal of market distortions and trade impediments.
APEC leaders meeting in Santiago have the opportunity to advance this goal by adopting benchmarks and best-practice principles for FTAs to help ensure that the Asia Pacific region stays the vanguard of integrated trade liberalisation.
If we maintain our focus on the main game, the Doha Round will deliver an historic level of trade liberalisation and both developing and developed countries will reap the benefits.
In this paper, the effect of trade liberalisation policies on wage inequality in Pakistan in 1990s and early 2000 is investigated.
The rest of this section provides a background on Pakistan's trade liberalisation and wage inequality, the consequent objectives of the research and the relevant review of the literature.
Trade liberalisation is having a profound impact on the international rice market because rice market has been the highly protected in both industrialised and developing nations [Wailes (2002)].
Keeping in view the present global economic scenario and the speed with which Pakistan is opening its product market, there is a widespread concern about the effects of trade liberalisation on agriculture, whereas, improving the economy of the agricultural sector, achieving self-sufficiency in food, and improving farmer's income are the top priorities of the country.
The theoretical research in the relevant literature indicate that economic globalisation in the form of trade liberalisation can affect pollution in three ways--technique effects, composition effects and scale effects [Antweiler, et al.
The collection of empirical evidence on the relative impact of these effects as well as the gross effects of trade liberalisation on the environment is rare and largely limited to developed countries) Furthermore, earlier research on the issue, which has largely been confined to cross-country investigations that were sensitive to the choice of pollutants and the countries included in the sample, has been unhelpful in offering guidance and sound policy advice to the developing countries) In recent years, an increased emphasis is being placed on examining the experience of individual countries so that policy frameworks are suggested according to their unique circumstances and resources.
Trade liberalisation facilitates economic growth rate, resulting in higher income and improved standard of living through two channels.
The formation of World Trade Organisation (WTO), in 1995 provided impetus to the process of trade liberalisation.