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 ?
The scope of the implementation of the special customs regulation and preferential taxation policies remain applicable to the newly-added free trade zones.
The subjects of Sughd free trade zone produced products for over 16.4 million somoni and Dangara free trade zone for over 5.7 million somoni.
Free trade strengthens our economy and creates greater prosperity--in Germany, Europe and around the world.
What accounts for the success of free trade against then prevailing mercantilist doctrines?
His comments follow a breakthrough in US-Mexico bilateral talks to revamp the North American Free Trade Agreement (NAFTA) that saw Foreign Minister Chrystia Freeland interrupt a European trip to rejoin trilateral NAFTA negotiations in Washington.
The seminar workshop was conducted under DTI-EMB's Doing Business in Free Trade Areas (DBFTA) program, a nationwide information campaign on Philippine FTAs covering discussions on market opportunities, preferential tariffs, ROO, and customs procedures.

On 13 May 2017, Georgia and China signed the free trade agreement to expand bilateral trade, BeijingEe's first-ever free trade agreement in the Eurasian region; The two countries launched the free trade agreement negotiations in March 2015.
Free trade is not a liability for the US economy; it is a necessity.
There is also a free trade zone in Damascus and another one based at Damascus International Airport.
"Iran's free trade zones should advance closer to their primary goal of export promotion instead of focusing on imports," President Rouhani said addressing a meeting in Tehran on Friday.
Chinaand members of the Gulf Cooperation Council -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates -- started free trade talks in 2004, and a deal will help China cut costs on energy imports from the region, the official China Daily said.
It's entirely in the interest of the beneficiaries of this system of power to use language like "free trade" to conceal its origins and grant it ideological legitimacy.