free trade is when products can cross borders with out being taxed or tarrifed, There is a free trade policy between canada and the US and there are alot of things that the US send to canada that hurt our own home industries but we do not put a tax on them why because we cant. look at the words free meaning not costing money trade meaning exchange of goods. the whole basis for free trade is that good do not get taxed when crossign the boarder, america broke that rule and there is currently an inquirey about it.