A free-trade agreement (自由贸易协定 zìyóu màoyì xiédìng) is a legally binding contract between two or more countries that reduces trade restriction and promotes economic efficiency. One of its goals is to eliminate trade barriers (贸易壁垒 màoyì bìlěi; 壁 bì, wall; 垒 lěi, base; 土 tǔ, soil/land/ground) such as tariffs, and to allow free flow of products and services between countries. Also: free trade.
- 贸 (mào) and 易 (yì) both refers to the commercial activities of exchange of goods.
- 协定 (xiédìng) as in peace agreement (和平协定 hépíng xiédìng).
- Free-trade (自由贸易 zìyóu màoyì) as in a free-trade area (自由贸易区 zìyóu màoyì qū).
- Agreement (协定 xiédìng) as in a loan agreement (贷款协定 dàikuǎn xiédìng).
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