What is Free Trade?

Legal Definition
Free trade is a policy followed by some international markets in which countries' governments do not restrict imports from, or exports to, other countries. Free trade is exemplified by the European Economic Area and the Mercosur, which have established open markets. Most nations are today members of the World Trade Organization (WTO) multilateral trade agreements. However, most governments still impose some protectionist policies that are intended to support local employment, such as applying tariffs to imports or subsidies to exports. Governments may also restrict free trade to limit exports of natural resources. Other barriers that may hinder trade include import quotas, taxes, and non-tariff barriers, such as regulatory legislation.
-- Wikipedia
Legal Definition
Economic ideology that advocates international trade without tariffs or discrimination by governments against imported products. NAFTA and the WTO are examples of treaties that seek to translate free trade ideals into practical legal rules.

See Protectionism (contrast).
Legal Definition
Buying and selling, importing and exporting of goods and services, not capital or labor, that has no limits or quotas or barriers or unbalanced tariffs.