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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The free-trade zone's subjects produced products for over 22,2 million somoni or $2.3 million, the ministry noted.
"Specialists, lawyers and experts, who participated in the bill drafting, looked into international legislation on free-trade zones in details.
Private free-trade zones help in creating around 83,000 direct jobs with annual wages estimated to be worth $95 million, along with many indirect jobs.
After the zones have been hard hit by the bad repercussions of the war waged against Syria since 2011, compounded by the unjust economic siege and sanctions imposed on the country, the government has been exerting relentless efforts to support and develop the free-trade zones to enable them to resume their activity.
He said talks were ongoing, but they were only "preliminary discussions" on a free-trade deal and talk of any impending signing was "premature."
"Which was exactly what we were trying to prevent when we negotiated the free-trade agreement.
Lee, who is in China on a five-day visit, told Singaporean journalists after an hourlong meeting Friday with Chinese Premier Wen Jiabao that bilateral free-trade talks will begin during a summit between the Association of Southeast Asian Nations and its three East Asian partners China, Japan and South Korea, which has been slated for November in the Laotian capital Vientiane.
The Senate joined the House in voting July 31 to approve separate free-trade pacts with Chile and Singapore.
They reinforce the benefits of import liberalization at home by opening up markets abroad, thus multiplying the economic gains and bringing domestic exporters into the free-trade coalition.
Meanwhile, the developed East Asian economies have initiated a system of currency swaps and are beginning to broach the idea of an Asian free-trade zone.
That a pro-union Democrat with a weak free-trade record like Rangel could support PNTR shows how much the political dynamics over trade have changed in the United States and why passage of the measure was never really in jeopardy.
The idea, say free-trade proponents like President Bill Clinton, is the fewer restrictions on trade, the more trade, and the more trade, the more everyone benefits.