Free trade is the notion that allows traders to tranasact without interference from the goverment and regulations. Thus, it allows for mutual gains from the trade of goods and services. The key factor in the free trade model is the fact that under free trade the prices are a true reflection of supply and demand. Whereas in many other trade policies the allocation of goods and services are determined by artificial prices, which have no reflection on the actual supply and demand. These artificial proces are the result of protectionist trade policies; this is when goverments intervene in the marker through adjusting the price and imposing supply restrictions. Examples of these interventions include, subsidies,taxes, quotas and tariffs ⁽⁷⁾

The features of free trade can be summarised as follows:-

1) Free and open access to markets.

2) Trade of goods and services without taxes and no barriers suchas quotas.

3) Open access to market information.

4) Open and free movement of labout and capital between and within countries.

5) No distortion of market through goverment monopolies.

6) No "trade distorting policies" suchas subdidies.

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