Meaning & use

free trade

noun·Everyday

Last updated

UK/ˌfriː ˈtreɪd/
US/ˌfriː ˈtreɪd/

Meanings

  1. noununcountable

    International trade without taxes or limits that restrict imports and exports.

    Grammar: No plural and no a/an: free trade helps consumers; not a free trade.

    Patterns

    • free trade between countries
    • free trade agreement
    • support/oppose free trade

    The two countries signed a free trade agreement last year.

    Economists often argue that free trade lowers prices for everyone.

    Farmers worried that free trade would hurt local produce.

  2. noununcountable

    A policy or system that allows goods to move between countries without government barriers.

    Grammar: Often used after prepositions like under or in: under free trade, in a free trade area.

    Patterns

    • under free trade
    • a free trade area
    • the benefits of free trade

    Under free trade, companies can sell goods abroad more easily.

    The region set up a free trade area to boost business.

    Debate over free trade divided the parliament.

Common combinations

free trade agreement
They are negotiating a free trade agreement with Asia.
free trade area
The free trade area covers ten countries.
promote free trade
The president promised to promote free trade.
barriers to free trade
Tariffs are barriers to free trade.

Synonyms and how they differ

open trade
Open trade is less formal and less common; free trade is the standard economic term.
trade liberalization
This refers to the process of removing restrictions, while free trade describes the resulting situation.

Opposites

protectionismtrade barriers

Word family

free trader noun
A person who supports free trade.
protectionist noun
Someone who wants to limit imports, the opposite of a free trader.

Commonly confused: free trade or fair trade?

free trade vs fair trade

Fair trade means paying producers a fair price, often for coffee or chocolate; free trade is about removing government barriers to trade.

Practice

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