Free Trade - Answers To Common Questions

There are great impacts on mercantilism that are currently, and have been, debated regarding the use of free trade between countries. In this article we will cover many of the basics of free trade and the questions you may have regarding this subject.

What is free trade?

Free trade is an agreement between countries that stipulates that no taxes or tariffs will be levied against goods or services that are imported or exported between the participating parties. There can be a country wide free trade agreement or there can be a free trade zone as an incentive to draw in companies and manufacturers so that there can be an increase in business and a boon to the economy.

What is a free trade zone?

A free trade zone, or also called an export processing zone is an area within a country where the typical or normal standards of taxes and tariffs do not apply. Free trade zones are usually used as an incentive to draw in more industries to an area that may be suffering from an economic downturn.

Why was it created?

NAFTA was created as a joint effort to help increase profits between Canada, the United States and Mexico. It would allow for each country's major exports to flow freely without worrying about taxation on importation and exportation of the goods that citizens most readily need and wish to purchase.

How can I protest the NAFTA?

Once you have all the facts about free trade and NAFTA you will need to contact your state Representative and Senator to let them know how you feel. This way they will know how their constituents feel about such key issues. This is the same for any key issue you feel strongly about. The most important thing to keep in mind is to be informed before you go and make hasty decisions.