free trade

/ˌˈfri ˌtreɪd/

/fri treɪd/

Other forms: free trades

An economic system in which the government doesn't restrict imports and exports is known as free trade. The U.S. has free trade agreements with many other countries to make buying and selling easier.

In its purest form, free trade places no taxes or tariffs on any imported or exported goods. While most politicians in the United States support free trade to some extent, there are many restrictions and regulations in place that affect buying and selling between countries. Proponents of free trade claim that it helps the economy and costs consumers less, while opponents note that a lack of regulations can hurt the environment and workers.

Definitions of free trade

1. noun

   international trade free of government interference
   types:

   NAFTA, North American Free Trade Agreement

   an agreement for free trade between the United States and Canada and Mexico; became effective in 1994 for ten years

   type of:

   trade

   the commercial exchange (buying and selling on domestic or international markets) of goods and services