Free trade refers to a trade policy that advocates international trade without restrictions by governments against imported or exported products, such as the trade of goods without taxes or trade barriers, the trade in services without taxes or trade barriers, and unregulated access to markets and market information. North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO) are examples of treaties that seek to translate free trade ideals into practical legal rules. The opposite of free trade is protectionism.
[Last updated in January of 2023 by the Wex Definitions Team]