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Free trade is a policy in which countries governments do not restrict imports from, or exports to, other countries. Good examples would be the European Economic Area (àªàª®.ઇ.) and the North American Free Trade Agreement (NAFTA) which have established open markets.
A free trade agreement between two sides, where each side could be a country, a trade-bloc or an informal group of countries is called a bilateral trade agreement.
A multilateral free trade agreement, is a negotiated free trade agreement between several countries all treated equally.
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