Free trade removes barriers between countries, enabling specialization, lower prices, and economic growth. However, it also creates winners and losers — with potential costs for industries and workers in import-competing sectors.
What Is Free Trade? Free trade is an economic policy under which countries trade goods and services without imposing tariffs, quotas, subsidies, or other barriers. It is based on the principle of comparative advantage — the idea that all countries benefit when each specializes in producing what it can produce at relatively lower cost, and trades for the rest. Free trade is promoted by international organizations including the World Trade Organization (WTO) and through bilateral and multilateral