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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 (Stati Uniti) 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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