A deal between countries to cut or remove tariffs and trade barriers between them.
A free trade agreement is a formal deal between two or more countries to reduce or eliminate tariffs, quotas, and other barriers on goods traded between them, making it cheaper and easier for businesses on both sides to sell across the border. Supporters argue they lower prices for consumers and open new markets for exporters; critics argue they can cost jobs in industries that can't compete with cheaper foreign production. When a country threatens to break or renegotiate one, as has happened with several major agreements in recent years, the industries built around it can face sudden, significant disruption.
Part of the Open Bell Glossary — plain-English explanations of the terms that come up on the show. Browse every term.