If this is the case one might agree that this kind of occurrence is beneficial to the importing country since the country will have the luxury of obtaining different imported goods at a lower cost which is sometimes has a high quality than locally produced goods.
Though it sounds good for some, there are those who claim that such a practice contains negative effects and implications to the economy, particularly, the exporting country. In this case, one might ask, why is there such an objection where in fact, the importing countries would be having imported goods and these goods would be available to the majority of the people due to its low prices.
Before plunging into a deeper perspective, as the aforementioned premises are just tip of an iceberg, defining the meaning of free trade in economy's perspective is needed in order to be guided and for the analysis in obtaining a stand with regards to free trade issue. Wikipedia (2007) defined free trade as "Free trade is an idealized market model, often stated as a political objective, in which trade of goods and services between countries flows unhindered by government-imposed tariff and non-tariff barriers. Nearly all modern non-Marxist economists support the statement that free trade is a net gain to both trading partners and that the gains from free trade outweigh the losses."
In this case, trading comes into picture; therefore, there are exchanges of goods from one country to the other. Meaning, the importing and exporting countries must have goods to be categorized as those goods that can be included in the free trade. In this case, there are mutual understanding between importing and exporting countries on what goods and services coming from the importing and exporting countries and vice versa should they not impose taxes. If we are to analyze, tough the (importing) country looses several amount of money due to free trade, that country would also be exempted on tax to the goods they have exported to the latter. In this case, it may look that the said trade agreement does not have any negative implications on the economic side since the proposed profit from tariffs and taxes were altered by savings that the agreement has generated.
Alleged Benefits of free trade
After taking into the definition, looking into the positive aspect and side with regards to free trade is also important in order to know the (supposed) benefits that a certain country could get. Froning (2000) further stressed that free trade, though in its early beginnings is influencing the global market nowadays. She stressed "Free trade policies have created a level of competition in today's open market that engenders continual innovation and leads to better products, better-paying jobs, new markets, and increased savings and investment. Free trade enables more goods and services to reach American consumers at lower prices, thereby substantially increasing their standard of living. Moreover, the benefits of free trade extend well beyond American households. Free trade helps to spread the value of freedom, reinforce the rule of law, and foster economic development in poor countries. The national debate over trade-related issues too