What characterizes a free trade agreement?

A free trade agreement is primarily characterized by its objective to eliminate trade barriers and facilitate trade between participating countries. This means that the countries involved agree to reduce or remove tariffs, quotas, and other restrictions that can limit the exchange of goods and services across their borders. By doing so, free trade agreements aim to enhance economic cooperation and increase market access, allowing businesses to operate more freely and consumers to benefit from a wider range of products and possibly lower prices.

The focus on the elimination of barriers rather than the imposition of new tariffs or restrictions aligns with the fundamental principles of free trade, which promote efficiency and competition in international markets. As a result, countries can specialize in the production of goods and services where they have a comparative advantage, leading to overall economic growth.

In contrast, the other options focus on actions contrary to the principle of free trade, such as imposing tariffs or increasing government control over trade, which would restrict rather than facilitate trade. These approaches do not align with the core purpose of a free trade agreement.