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Originally posted by: Shimraa
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.
No, free trade is when a country is free to import and export, tax and tarrif as it sees fit. The countries on the other end of the deal are free to accept or decline the terms as THEY see fit and to set their own rules. This is not the case for hardly anyone now that we're all tied to the WTO and IMF. Canada shouldn't accept our goods if they don't like the terms of the deal. Tarrifs are the only means a country has of protecting internal suppliers of the same goods/services. Unfortunately, they're not being used in the correct fashion in the US, and when they are all the other members of the WTO whine about the US actually PROTECTING it's own companies.