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free trade

Economic system where governments do not interfere in the movement of goods between countries; there are thus no taxes on imports. In the modern economy, free trade tends to hold within economic groups such as the European Union (EU), but not generally, despite such treaties as the General Agreement on Tariffs and Trade (GATT) of 1948 and subsequent agreements to reduce tariffs. The opposite of free trade is protectionism.

© RM 2010. Helicon Publishing is division of RM.


 
 

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Costa Rica flag

Costa Rica Flag
The sun of freedom rises from the Caribbean Sea. The stars represent Costa Rica's seven provinces. Red was added to the blue and white flag to reflect the French tricolour. Effective date: 29 September 1848.

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