- Definition
Free trade means countries or provinces can buy and sell goods to each other without extra taxes (called tariffs) or special financial help from the government.
Because of a free trade agreement, a car made in Mexico can be sold in Canada without extra taxes, making it cheaper.
How to teach this in 30 seconds
Try this analogy: Free trade agreements are like countries agreeing to reduce some barriers that make it harder or more costly to trade goods and services.
Ask your child: If you could trade snacks with a friend in another country, what would you trade?
Common mix-up: Free trade does not mean goods cost nothing or that every border charge disappears. Agreements can reduce tariffs and other barriers for certain goods while still keeping rules, standards, and exceptions.
Examples
- A clothing store importing shirts from Vietnam without paying a tariff.
- A farmer in Alberta selling wheat to a company in British Columbia without any provincial trade barriers.
free trade is a term used in Ontario’s Kindergarten to Grade 8 curriculum.
Where this shows up
The descriptions on this page are SmartStudy’s own original, plain-language writing — not the Ministry’s wording. They are aligned to the Ontario Curriculum, © King’s Printer for Ontario. For the Ministry’s official wording, see the source link below. SmartStudy is an independent service and is not affiliated with, endorsed by, or sponsored by the Government of Ontario or the Ministry of Education. Ontario Curriculum and Resources ↗
