Free trade

trade liberalizationfree-tradetrade liberalisationmarket liberalizationfreeFree trade debatecapital mobilityduty-freefree-traderFree Trader
Free trade is a trade policy that does not restrict imports or exports.wikipedia
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Commercial policy

trade policyinternational trade policytrade
Free trade is a trade policy that does not restrict imports or exports.
Trade policy is often described in terms of a scale between the extremes of free trade (no restrictions on trade) on one side and protectionism (high restrictions to protect domestic producers) on the other.

Liberalism

liberalliberalssocially liberal
In government, free trade is predominantly advocated by political parties that hold liberal economic positions while economically left-wing and nationalist political parties generally support protectionism, the opposite of free trade.
Liberals also ended mercantilist policies, royal monopolies and other barriers to trade, instead promoting free trade and free markets.

Open market

open-marketmarket opennessopen and free markets
An alternative approach, of creating free trade areas between groups of countries by agreement, such as that of the European Economic Area and the Mercosur open markets, creates a protectionist barrier between that free trade area and the rest of the world.
The term open market is used generally to refer to an economic situation close to free trade.

Economic nationalism

economic nationalisteconomic independenceEconomic patriotism
In government, free trade is predominantly advocated by political parties that hold liberal economic positions while economically left-wing and nationalist political parties generally support protectionism, the opposite of free trade.
In many cases, economic nationalists oppose globalization or at least question the benefits of unrestricted free trade.

Comparative advantage

economic advantageTheory of Comparative AdvantageComparative Advantage Studies
Two simple ways to understand the proposed benefits of free trade are through David Ricardo's theory of comparative advantage and by analyzing the impact of a tariff or import quota.
The law or principle of comparative advantage holds that under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage.

Tariff

tariffscustoms dutyimport duties
Most governments still impose some protectionist policies that are intended to support local employment, such as applying tariffs to imports or subsidies to exports.
His Liberal Unionists had split from the Liberals, who promoted Free Trade, and the speech was a landmark in the group's slide towards Protectionism.

Mercosur

MercosulSouthern Cone Common MarketSouthern Common Market
An alternative approach, of creating free trade areas between groups of countries by agreement, such as that of the European Economic Area and the Mercosur open markets, creates a protectionist barrier between that free trade area and the rest of the world.
Mercosur's purpose is to promote free trade and the fluid movement of goods, people, and currency.

Trade barrier

trade barriersexport controlbarriers to trade
There is a broad consensus among economists that protectionism has a negative effect on economic growth and economic welfare while free trade and the reduction of trade barriers has a positive effect on economic growth and economic stability.
In theory, free trade involves the removal of all such barriers, except perhaps those considered necessary for health or national security.

Trade agreement

trade pacttrade agreementsBilateral Trade Agreement
Increasing efficiency through "free trade" is a common goal.

World Trade Organization

WTOWTrOWorld Trade Organisation
Most nations are today members of the World Trade Organization multilateral trade agreements.
The initial agenda comprised both further trade liberalization and new rule-making, underpinned by commitments to strengthen substantial assistance to developing countries.

Qing dynasty

QingQing EmpireChina
For example, Smith pointed to increased trading as being the reason for the flourishing of not just Mediterranean cultures such as Egypt, Greece and Rome, but also of Bengal (East India) and China.
Following the Opium Wars, European powers led by Great Britain imposed "unequal treaties", free trade, extraterritoriality and treaty ports under foreign control.

Left-wing politics

left-wingleftistleft
In government, free trade is predominantly advocated by political parties that hold liberal economic positions while economically left-wing and nationalist political parties generally support protectionism, the opposite of free trade.
Some link this left-wing nationalism to the pressure generated by economic integration with other countries encouraged by free trade agreements.

Navigation Acts

Navigation ActActs of Trade and Navigationsecond Navigation Act
Trade in colonial America was regulated by the British mercantile system through the Acts of Trade and Navigation.
Overall, the Acts formed the basis for English (and later) British overseas trade for nearly 200 years, but with the development and gradual acceptance of free trade, the acts were eventually repealed in 1849.

Corn Laws

Corn Lawrepeal of the Corn LawsImportation Act 1815
Ottoman free trade policies were praised by British economists advocating free trade such as J. R. McCulloch in his Dictionary of Commerce (1834), but criticized by British politicians opposing free trade such as Prime Minister Benjamin Disraeli, who cited the Ottoman Empire as "an instance of the injury done by unrestrained competition" in the 1846 Corn Laws debate, arguing that it destroyed what had been "some of the finest manufactures of the world" in 1812.
Economic historians see the repeal of the Corn Laws as a decisive shift toward free trade in Britain.

David Ricardo

RicardoRicardianDavid Ricardo,MP
Two simple ways to understand the proposed benefits of free trade are through David Ricardo's theory of comparative advantage and by analyzing the impact of a tariff or import quota. However, it was two early British economists Adam Smith and David Ricardo who later developed the idea of free trade into its modern and recognizable form.
With "comparative advantage" Ricardo argued in favour of industry specialisation and free trade.

Francisco de Vitoria

Francisco de '''Vitoriade VitoriaFrancisco de Vittoria
American jurist Arthur Nussbaum noted that Spanish theologian Francisco de Vitoria was "the first to set forth the notions (though not the terms) of freedom of commerce and freedom of the seas".
American jurist Arthur Nussbaum noted that Vitoria was "the first to set forth the notions (though not the terms) of freedom of commerce and freedom of the seas."

Economic liberalism

economically liberalliberaleconomic liberal
The Ottoman Empire had liberal free trade policies by the 18th century, with origins in capitulations of the Ottoman Empire, dating back to the first commercial treaties signed with France in 1536 and taken further with capitulations in 1673, in 1740 which lowered duties to only 3% for imports and exports and in 1790.
Although economic liberals can also be supportive of government regulation to a certain degree, they tend to oppose government intervention in the free market when it inhibits free trade and open competition.

Mercantilism

mercantilistmercantilemercantilists
Free trade policies have battled with mercantilist, protectionist, isolationist, socialist, populist and other policies over the centuries.
The British Parliament's repeal of the Corn Laws under Robert Peel in 1846 symbolized the emergence of free trade as an alternative system.

Adam Smith

SmithA SmithAdam Smith’s
However, it was two early British economists Adam Smith and David Ricardo who later developed the idea of free trade into its modern and recognizable form.
According to one story, Smith took Charles Townshend on a tour of a tanning factory, and while discussing free trade, Smith walked into a huge tanning pit from which he needed help to escape.

International trade

foreign tradeglobal tradetrade
It can also be understood as the free market idea applied to international trade.

Henry Charles Carey

Henry C. CareybrotherCarey
The economist Henry Charles Carey became a leading proponent of the American System of economics.
Carey is best known for the book The Harmony of Interests: Agricultural, Manufacturing, and Commercial (1851), which denigrates the "British System" of laissez faire free trade capitalism in comparison to the American System of developmental capitalism, which uses tariff protection and government intervention to encourage production and national self-sufficiency.

Republican Party (United States)

RepublicanRepublican PartyR
The fledgling Republican Party led by Abraham Lincoln, who called himself a "Henry Clay tariff Whig", strongly opposed free trade and implemented a 44% tariff during the Civil War, in part to pay for railroad subsidies and for the war effort and in part to protect favored industries.
The GOP was strongly committed to protectionism and tariffs at its founding, but grew more supportive of free trade in the 20th century.

Protectionism

protectionisttariff reformprotection
In government, free trade is predominantly advocated by political parties that hold liberal economic positions while economically left-wing and nationalist political parties generally support protectionism, the opposite of free trade. Free trade policies have battled with mercantilist, protectionist, isolationist, socialist, populist and other policies over the centuries.
There is a consensus among some economists that protectionism has a negative effect on economic growth and economic welfare, while free trade, deregulation, and the reduction of trade barriers has a significantly positive effect on economic growth.

Dominican Republic–Central America Free Trade Agreement

Central American Free Trade AgreementCAFTACentral America Free Trade Agreement
Since the 1970s, United States governments have negotiated managed-trade agreements, such as the North American Free Trade Agreement in the 1990s, the Dominican Republic-Central America Free Trade Agreement in 2006 and a number of bilateral agreements (such as with Jordan).
The Dominican Republic– Central America Free Trade Agreement (CAFTA-DR) is a free trade agreement (legally a treaty under international law).

Export

exportsexporterexported
Free trade is a trade policy that does not restrict imports or exports.