free trade


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Related to free trade: Free trade zone

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 ?
It is this scenario that bolsters CFOs' support for free trade and may well unshackle the North American economy.
It would build on the North American Free Trade Agreement (NAFTA), "broadening" its regulatory and enforcement powers while "deepening" the economic and political relationships among the three signatory nations.
13, 2005 (DFARS Change Notice 20050113) to implement new Free Trade Agreements with Australia and Morocco.
On congressional trips overseas, he's made a point of visiting countries in the Middle East to discuss a possible free trade treaty with as many as eight of them.
The benefits of an umbrella of free trade partners in APEC is far superior to a continuation of bilateral agreements," says Somerville.
At Monterrey, the leaders welcomed recent progress made on the Free Trade Area of the Americas (FTAA) at the November, 2003 Ministerial in Miami and endorsed the Miami framework.
Excuse me, sir, but your fly is open" is perhaps a more fitting expression when contemplating the impact of free trade on Canada.
But, as free trade and the establishment of private property rights increase wealth and political freedom, tolerance for terrorism will decline.
wound up on a list of token free trade critics who were invited to all the official summit soirees.
A study indicates the free trade pact, if set up, would generate 0.
According to Audley, the administration's seat-of-the-pants experience performing environmental reviews during the North American Free Trade Agreement in 1992-1993, the General Agreement on Tariffs and Trade in 1994, and an initiative for accelerated tariff liberalization in the forest products sector in 1999 highlighted a need for a formal, structured approach to assessing environmental risks from trade.