Free Trade Agreement Implies

Free trade was best exemplified by the unilateral attitude of Britain, which from the mid-nineteenth century to the 1920s reduced rules and tariffs on imports and exports. [5] An alternative approach of creating free trade areas between groups of countries through agreements, such as those of the European Economic Area and Mercosur, creates a protectionist barrier between this free trade area and the rest of the world. Most governments continue to impose certain protectionist measures to support local employment, such as for example. Β the application of customs duties on imports or export subsidies. Governments can also restrict free trade to limit exports of natural resources.