what is free trade

Free trade is a trade policy that does not restrict imports or exports. It is predominantly advocated by political parties that hold economically liberal positions, while economic nationalist and left-wing political parties tend to oppose it. Free trade agreements (FTAs) are pacts between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be traded without tariffs or other trade barriers. A free trade area is a group of countries that have agreed to mutually lower or eliminate trade barriers for trade within the area. The benefits of free trade include increased competition, lower prices for consumers, and increased economic growth. However, opponents argue that free trade can lead to job losses and a widening income gap. The United States has comprehensive free trade agreements in force with 20 countries, including Canada, Mexico, and Singapore.