Internal Free Trade

Free trade within national borders is in some countries a comparatively recent development. Jean Baptiste Colbert tried to abolish internal trade barriers in France in the 17th cent., but that was not accomplished until the French Revolution, a hundred years later. In the German states Prussia took the lead in organizing the Zollverein movement after 1818. The desire to assure freedom from internal trade barriers in the United States was a factor in calling the Constitutional Convention. In Britain, the classic home of the free-trade movement, the term free trade was first used during the agitation for removal of the privileges of the chartered companies in the 17th cent.

International Free Trade

In 18th-century Britain, free trade eventually came to mean the desire for a moderate tariff policy in international trade, especially with France. The rapid growth of British industry in the late 1700s (see Industrial Revolution) gave added force to the attack on international trade restrictions (see mercantilism). Adam Smith's Wealth of Nations (1776) provided a powerful intellectual basis for the free trade movement, and the later work of David Ricardo was important in developing the notion of comparative advantage as an argument in its favor. The most important practical blow in favor of the free-trade movement came with the formation (1839) of the Anti-Corn-Law League, and the repeal (1846) of the corn laws. The Anglo-French commercial treaty of 1860 represented perhaps the high-water mark of free trade.

After World War I, Britain reintroduced protection and a system of imperial preference in an attempt to establish a greater measure of economic autonomy. France, along with other European nations, historically followed a policy of protection. In the period of international economic dislocation in the mid-1930s, the United States reversed earlier policy and signed reciprocal trade treaties with many foreign governments, embracing a policy of selective tariff reduction for economic and political reasons. At present the United States is a relatively low tariff nation, although it still maintains a fairly restrictive system of import quotas. Japan also has restrictive import quotas, as well as high tariffs and other trade restrictions.

After World War II, strong sentiment developed throughout the world against protection and high tariffs and in favor of freer trade. The results were new organizations and agreements on international trade such as the General Agreement on Tariffs and Trade (1948), the Benelux Economic Union (1948), the European Economic Community (Common Market, 1957), the European Free Trade Association (1959), Mercosur (1991), and the World Trade Organization (1995). In 1993 the North American Free Trade Agreement (NAFTA) was approved by the governments of Canada, Mexico, and the United States. In the early 1990s the nations of the European Union (the successor organization to the Common Market) undertook to remove all barriers to the free movement of trade and employment across their mutual borders.

Critics of free trade zones argue that such measures are detrimental to domestic economies. In the case of NAFTA, for example, opponents contended that the jobs of some American workers would be "exported" to Mexico, where labor costs are lower. Many have continued to oppose the international impetus toward freer trade, arguing the accords not only fail to protect jobs in more developed nations but also harm workers and the environment in less developed nations, where the laws are more lax or less enforced. Despite such objections, support for free trade has continued. In Apr., 2001, for example, 34 nations of the Western Hemisphere committed themselves to the development of a Free Trade Area of the Americas, though movement toward such an organization subsequently stalled. In May, 2004, the Central American Free Trade Agreement was finalized by the United States and five Central American nations; the Dominican Republic is also a member of the group. The United States, Japan, China, and other countries have also negotiated bilateral free-trade agreements with individual nations or regional trade associations; such agreements generally open trade in some areas while preserving the protection of politically sensitive economic sectors.

See also reciprocal trade agreement.

Origins of the Movement

Free silver became a popular issue soon after the Panic of 1873, and it was a major issue in the next quarter century. The hard times of 1873-78 stimulated advocacy of cheap money, and the Greenback party nominated presidential candidates several times and flourished in local elections, especially in 1876 and 1878. The market price of silver fell rapidly after 1873, because of American and European demonetization of silver and because of increases in mine production. Inflationists failed to secure paper-money expansion and turned to silver, believing its free coinage would serve their purpose as well as greenbacks so long as a silver dollar was worth intrinsically less than a gold dollar. Silver-mining interests also wanted silver coinage to aid their business.

Political Ferment and Legislative Compromise

The demands for unlimited silver coinage led to the passage (1878) of a compromise measure, the Bland-Allison Act, over President Hayes's veto. The act provided for definitely limited coinage at a ratio of 16 to 1 with gold, but its provisions were insufficient to halt the decline of silver prices, or to increase the circulation of money. Meanwhile, sectional lines over money were becoming sharply drawn. The financial interests in the East favored sound money and the gold standard. The indebted agrarian classes of the South and West demanded inflation, to ease debt burdens in the face of falling prices of farm products. Their demands were reinforced by Western silver-mining interests.

As the prosperity of the early 1880s vanished, demands arose again for free silver. By 1890 the political strength of the silver advocates, especially in the West, was so great that the Sherman Silver Purchase Act, another compromise, was passed, to replace the Bland-Allison Act and to provide for increased government purchases of silver. The West's discontent was further emphasized by the rise of the Populist party, with demands including free silver. The silver advocates were no longer content with compromise measures and were displeased by the 1892 presidential candidacy of Grover Cleveland, a supporter of the gold standard. Many silver Democrats deserted Cleveland to support James B. Weaver, the Populist candidate. This coalition of silverites and Populists was able to gain control of half a dozen Western states.

Advocates of free silver were enraged when the Panic of 1893 brought repeal of the Sherman Silver Purchase Act. By the middle of his second term, Cleveland's Western and Southern opponents had captured the Democratic party. Publication of Coin's Financial School, by William Hope Harvey (1894), made many converts to free silver by presenting the complicated money question in easily understood terms.

Decline of the Movement

In 1896 free silver became the major issue of a presidential campaign when William Jennings Bryan made it the chief plank of his platform. McKinley's victory over Bryan then and again in 1900, coupled with increased gold supplies and returning prosperity, minimized free silver as a political issue. Yet the silver bloc, partly inspired by Nevada silver interests, continued to be active and secured legislation mandating heavy U.S. Treasury purchases of silver under Franklin Delano Roosevelt. The decreasing supply of silver in the 1960s led the U.S. Treasury to end its use in coins and to sell its surplus stock of silver in 1970.

In the early 19th cent. the Orange Free State was inhabited mainly by the Bantu-speaking Tswana people. Afrikaner farmers (Boers) entered the territory from the 1820s; after 1835 their immigration accelerated (see Trek, Great). In 1848 the British, who then held Cape Colony and Natal, annexed the region as the Orange River Sovereignty. After conflicts with the Boers and failure to establish an orderly administration, Britain, by the Bloemfontein Convention (1854), granted the territory independence as the Orange Free State. With the increased tension following the raid into the Transvaal (1895-96), led by L. S. Jameson, the Free State was drawn into the conflict between Britons and Boers that resulted in the South African War (1899-1902). The British again annexed the Free State, as the Orange River Colony, in 1900. In 1907 the colony was granted self-government, and in 1910 it became a founding province of the Union (now Republic) of South Africa.

EFTA began with two goals: to establish free trade among members and to seek a broader economic union with the rest of Western Europe. The first was accomplished in 1966, when most of the intra-EFTA tariffs were abolished. Negotiations toward the second goal began in 1961, when Great Britain sought entry into the EEC. Its bid was rejected (1963) by France; however, later discussions succeeded, and in 1973 Denmark and Great Britain left EFTA to join the EC. The same negotiations produced a trade accord between the newly expanded EC and the remaining members of EFTA. In 1986, Portugal also left EFTA for the EC. The development of a single market between the EU and most EFTA nations was completed in 1994, when the European Economic Area (EEA) came into being. EFTA members Austria, Finland, and Sweden joined the EU in 1995, but in Norway the voters rejected a similar move.

Area within which goods may be landed, handled, and re-exported freely. The purpose is to remove obstacles to trade and to permit quick turnaround of ships and planes. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to tariffs and customs regulation. Free-trade zones are found around major seaports, international airports, and national frontiers; there are more than 200 such zones in the U.S. alone.

Learn more about free-trade zone with a free trial on Britannica.com.

Any of about 90 species of bats (family Molossidae), found worldwide in warm regions, that are named for the way part of the tail extends beyond the membrane attached between the hind legs. Also known as mastiff or bulldog bats because of their facial resemblance to those dogs, free-tailed bats are swift fliers with a stout body and long, slender wings. They are about 1.6–5 in. (4–13 cm) long, excluding the 0.6–3-in. (1.5–8-cm) tail, and typically have small eyes, a heavy snout, large ears, and dark fur. They eat insects and roost in tree hollows, caves, and buildings. Most species live in groups; some, including the Mexican free-tailed bat, form colonies of several million. In the past, guano from such colonies was mined for fertilizer and for sodium nitrate (used to make gunpowder).

Learn more about free-tailed bat with a free trial on Britannica.com.

In mechanics, the state of a body that moves freely in any manner in the presence of gravity. The planets are in free fall in the gravitational field of the Sun. A body in free fall follows an orbit such that the sum of gravitational and inertial forces equals zero. Seealso gravitation; Newton's laws of motion.

Learn more about free fall with a free trial on Britannica.com.

Poetry organized according to the cadences of speech and image patterns rather than according to a regular metrical scheme. Its rhythms are based on patterned elements such as sounds, words, phrases, sentences, and paragraphs, rather than on the traditional units of metrical feet (see metrical foot). Free verse thus eliminates much of the artificiality and some of the aesthetic distance of poetic expression. It became current in English poetics in the early 20th century. Seealso prosody.

Learn more about free verse with a free trial on Britannica.com.

Policy in which a government does not discriminate against imports or interfere with exports. A free-trade policy does not necessarily imply that the government abandons all control and taxation of imports and exports, but rather that it refrains from actions specifically designed to hinder international trade, such as tariff barriers, currency restrictions, and import quotas. The theoretical case for free trade is based on Adam Smith's argument that the division of labour among countries leads to specialization, greater efficiency, and higher aggregate production. The way to foster such a division of labour, Smith believed, is to allow nations to make and sell whatever products can compete successfully in an international market.

Learn more about free trade with a free trial on Britannica.com.

Term used in chemistry with one predominant and two subsidiary, looser meanings. It most often refers to a free radical. It can also mean an ion or a functional group.

Learn more about radical with a free trial on Britannica.com.

Economic system in which most of the means of production are privately owned, and production is guided and income distributed largely through the operation of markets. Capitalism has been dominant in the Western world since the end of mercantilism. It was fostered by the Reformation, which sanctioned hard work and frugality, and by the rise of industry during the Industrial Revolution, especially the English textile industry (16th–18th centuries). Unlike earlier systems, capitalism used the excess of production over consumption to enlarge productive capacity rather than investing it in economically unproductive enterprises such as palaces or cathedrals. The strong national states of the mercantilist era provided the social conditions, such as uniform monetary systems and legal codes, necessary for the rise of capitalism. The ideology of classical capitalism was expressed in Adam Smith's Wealth of Nations (1776), and Smith's free-market theories were widely adopted in the 19th century. In the 20th century the Great Depression effectively ended laissez-faire economics in most countries, but the demise of the state-run command economies of eastern Europe and the former Soviet Union (see communism) and the adoption of some free-market principles in China left capitalism unrivaled (if not untroubled) by the beginning of the 21st century.

Learn more about capitalism with a free trial on Britannica.com.

Measure of the total combined energies within a system, derived from heats of transformation, disorder, and other forms of internal energy (e.g., electrostatic charges). A system will change spontaneously to achieve a lower total free energy. Thus, free energy is the driving force toward equilibrium conditions. The change in free energy between an initial and a final state is useful in evaluating certain thermodynamic processes and can be used to judge whether transformations will occur spontaneously. There are two forms of free energy, with different definitions and applications: the Helmholtz (see Hermann von Helmholtz) free energy, sometimes called the work function, and the Gibbs (see J. Willard Gibbs) free energy.

Learn more about free energy with a free trial on Britannica.com.

Former province, central South Africa. Before the arrival of the Europeans, the area was the home of Bantu-speaking peoples. Afrikaners came in large part during the Great Trek of the 1830s. Britain administered the territory from 1848 to 1854; then the independent Orange Free State was established. British rule was reimposed following the South African War in 1902, though self-government was later restored. In 1910 it became the Orange Free State province of the Union of South Africa (from 1961 the Republic of South Africa). After the South African elections of 1994, it became the province of Free State. Blacks make up about 80percnt of the population; most of the whites speak Afrikaans. The province's capital is Bloemfontein.

Learn more about Orange Free State with a free trial on Britannica.com.

Trade pact signed by Canada, the U.S., and Mexico in 1992, which took effect in 1994. Inspired by the success of the European Community in reducing trade barriers among its members, NAFTA created the world's largest free-trade area. It basically extended to Mexico the provisions of a 1988 Canada-U.S. free-trade agreement, calling for elimination of all trade barriers over a 15-year period, granting U.S. and Canadian companies access to certain Mexican markets, and incorporating agreements on labour and the environment. Seealso General Agreement on Tariffs and Trade; World Trade Organization.

Learn more about NAFTA with a free trial on Britannica.com.

Island country, western Europe, North Atlantic Ocean. It comprises Great Britain (England, Scotland, and Wales) and Northern Ireland. Area: 93,788 sq mi (242,910 sq km). Population (2005 est.): 60,020,000. Capital: London. The population is composed of English (major ethnic group), Scots, Irish, and Welsh and immigrants and their descendants from India, the West Indies, Pakistan, Bangladesh, and Africa. Languages: English (official); also Welsh, Scottish Gaelic. Religions: Christianity (Protestant [Church of England—established; Church of Scotland—national], Roman Catholic, other Christians); also Islam, Hinduism, Sikhism, Judaism. Currency: pound sterling. The country has hill, lowland, upland, highland, and mountain regions. Tin and iron ore deposits, once central to the economy, have become exhausted or uneconomical, and the coal industry, long a staple of the economy, began a steady decline in the 1950s that worsened with pit closures in the 1980s. Offshore petroleum and natural gas reserves are significant. Chief crops are barley, wheat, sugar beets, and potatoes. Major manufactures include motor vehicles, aerospace equipment, electronic data-processing and telecommunication equipment, and petrochemicals. Fishing and publishing also are important economic activities. The U.K. is a constitutional monarchy with two legislative houses; its chief of state is the sovereign, and the head of government is the prime minister.

The early pre-Roman inhabitants of Britain (see Stonehenge) were Celtic-speaking peoples, including the Brythonic people of Wales, the Picts of Scotland, and the Britons of Britain. Celts also settled in Ireland circa 500 BC. Julius Caesar invaded and took control of the area in 55–54 BC. The Roman province of Britannia endured until the 5th century AD and included present-day England and Wales. Germanic tribes, including Angles, Saxons, and Jutes, invaded Britain in the 5th century. The invasions had little effect on the Celtic peoples of Wales and Scotland. Christianity began to flourish in the 6th century. During the 8th and 9th centuries, Vikings, particularly Danes, raided the coasts of Britain. In the late 9th century Alfred the Great repelled a Danish invasion, which helped bring about the unification of England under Athelstan. The Scots attained dominance in Scotland, which was finally unified under Malcolm II (1005–34). William of Normandy (see William I) took England in 1066. The Norman kings established a strong central government and feudal state. The French language of the Norman rulers eventually merged with the Anglo-Saxon of the common people to form the English language. From the 11th century, Scotland came under the influence of the English throne. Henry II conquered Ireland in the late 12th century. His sons Richard I and John had conflicts with the clergy and nobles, and eventually John was forced to grant the nobles concessions in the Magna Carta (1215). The concept of community of the realm developed during the 13th century, providing the foundation for parliamentary government. During the reign of Edward I (1272–1307), statute law developed to supplement English common law, and the first Parliament was convened. In 1314 Robert the Bruce (see Robert I) won independence for Scotland. The house of Tudor became the ruling family of England following the Wars of the Roses (1455–85). Henry VIII (1509–47) established the Church of England and incorporated Wales as part of England.

The reign of Elizabeth I (1558–1603) began a period of colonial expansion; in 1588 British forces defeated the “invincible” Spanish Armada. In 1603 James VI of Scotland ascended the English throne, becoming James I, and established a personal union of the two kingdoms. The English Civil Wars erupted in 1642 between Royalists and Parliamentarians, ending in the execution of Charles I (1649). After 11 years of Puritan rule under Oliver Cromwell and his son (1649–60), the monarchy was restored with Charles II. In 1689, following the Glorious Revolution, Parliament proclaimed the joint sovereigns William III and Mary II, who accepted the British Bill of Rights. In 1707 England and Scotland assented to the Act of Union, forming the kingdom of Great Britain. The Hanoverians ascended the English throne in 1714, when George Louis, elector of Hanover, became George I of Great Britain. During the reign of George III, Great Britain's North American colonies won independence (1783). This was followed by a period of war (1789–1815) with Revolutionary France and later with the empire of Napoleon. In 1801 legislation united Great Britain with Ireland to create the United Kingdom of Great Britain and Ireland. Britain was the birthplace of the Industrial Revolution in the late 18th century, and it remained the world's foremost economic power until the late 19th century. During the reign of Queen Victoria (1837–1901), Britain's colonial expansion reached its zenith, though the older dominions, including Canada and Australia, were granted independence (1867 and 1901, respectively).

The U.K. entered World War I allied with France and Russia in 1914. Following the war, revolutionary disorder erupted in Ireland, and in 1921 the Irish Free State (see Ireland) was granted dominion status. Six counties of Ulster, however, remained in the U.K. as Northern Ireland. The U.K. entered World War II in 1939. Following the war, the Irish Free State became the Irish republic and left the Commonwealth. India also gained independence from the U.K. Throughout the postwar period and into the 1970s, the U.K. continued to grant independence to its overseas colonies and dependencies. With UN forces, it participated in the Korean War (1950–53). In 1956 it intervened militarily in Egypt during the Suez Crisis. It joined the European Economic Community, a forerunner of the European Union, in 1973. In 1982 it defeated Argentina in the Falkland Islands War. As a result of continuing social strife in Northern Ireland, it joined with Ireland in several peace initiatives, which eventually resulted in an agreement to establish an assembly in Northern Ireland. In 1997 referenda approved in Scotland and Wales devolved power to both countries, though both remained part of the U.K. In 1991 the U.K. joined an international coalition to reverse Iraq's conquest of Kuwait (see Persian Gulf War). In 2003 the U.K. and the U.S. attacked Iraq and overthrew the government of Ssubdotaddām Hsubdotussein (see Iraq War). Terrorist bombings in London in July 2005 killed more than 50 people.

Learn more about United Kingdom of Great Britain and Northern Ireland with a free trial on Britannica.com.

Part of the United Kingdom of Great Britain and Northern Ireland occupying the northeastern portion of the island of Ireland. Area: 5,461 sq mi (14,144 sq km). Population (2001): 1,685,267. Capital: Belfast. It is bounded by the republic of Ireland, the Irish Sea, the North Channel, and the Atlantic Ocean. Northern Ireland is often referred to as the province of Ulster. The people are descended from indigenous Irish and immigrants from England and Scotland. Language: English (official). Religions: Protestantism (the majority) and Roman Catholicism (a minority). Currency: pound sterling. Northern Ireland's industries include engineering, shipbuilding (which has been in severe decline), automobile manufacturing, textiles, food and beverage processing, and clothing. The service industry employs about three-fourths of the workforce, and manufacturing employs less than one-fifth of workers. Agriculture is important, with most farm income derived from livestock. Northern Ireland shares most of its history with the republic of Ireland, though Protestant English and Scots immigrating in the 16th–17th centuries tended to settle in Ulster. In 1801 the Act of Union created the United Kingdom, which united Great Britain and Ireland. In response to mounting Irish sentiment in favour of Home Rule, the Government of Ireland Act was adopted in 1920, providing for two partially self-governing units in Ireland: the northern six counties constituting Northern Ireland and the southern counties now making up the republic of Ireland. In 1968 civil rights protests by Roman Catholics sparked violent conflicts with Protestants and led to the occupation of the province by British troops in the early 1970s. The Irish Republican Army (IRA) mounted a prolonged campaign of violence in an effort to force the withdrawal of British troops as a prelude to Northern Ireland's unification with Ireland. In 1972 Northern Ireland's constitution and parliament were suspended, bringing the province under direct rule by the British. Violence continued for three decades before dropping off in the mid-1990s. In 1998 talks between the British government and the IRA resulted in a peace agreement that provided for extensive Home Rule in the province. In 1999 power was devolved to an elected assembly, though the body was hampered by factional disagreements. Sporadic sectarian strife continued in the early 21st century, as the IRA gradually carried out decommissioning (disarming).

Learn more about Northern Ireland with a free trial on Britannica.com.

Island and province (pop., 2000: 118,350), Bismarck Archipelago, Papua New Guinea. The island has an area of 3,340 sq mi (8,651 sq km) and is about 220 mi (350 km) long. The terrain is largely mountainous. The province includes many nearby smaller islands. It was discovered by Dutch navigators in 1616 but was little known before 1884, when it became part of a German protectorate. After World War I it was mandated to Australia. The island was occupied by the Japanese in World War II. When Papua New Guinea gained independence in 1975, it became part of that country. Most of the inhabitants live in the north. Copra production dominates commercial development.

Learn more about New Ireland with a free trial on Britannica.com.

Country, western Europe, occupying the greater part of the island of Ireland west of Great Britain. Area: 27,133 sq mi (70,273 sq km). Population (2005 est.): 4,096,000. Capital: Dublin. The northeastern portion of the island is occupied by Northern Ireland. Although Ireland has been invaded and colonized by Celts, Norsemen, Normans, English, and Scots, ethnic distinctions are nonexistent. Languages: Irish, English (both official). Religion: Christianity (predominantly Roman Catholic; also Protestant). Currency: euro. Ireland's topography consists largely of broad lowlands drained by rivers that include the Shannon; its coasts are fringed with mountains. Nearly three-fifths of the population is urban; agriculture employs only a small percentage of the workforce. High technology, tourism, and other service industries are pivotal to the Irish economy, while mining, manufacturing, and construction also remain important. Ireland is a republic with two legislative houses; its chief of state is the president, and the head of government is the prime minister. Human settlement in Ireland began circa 6000 BC, and Celtic migration dates from circa 300 BC. St. Patrick is credited with having Christianized the country in the 5th century. Norse domination began in 795 and ended in 1014, when the Norse were defeated by Brian Boru. Gaelic Ireland's independence ended in 1175 when Roderic O'Connor, Ireland's high king, accepted English King Henry II as his overlord. Beginning in the 16th century, Irish Catholic landowners fled religious persecution by the English and were replaced by English and Scottish Protestant migrants. The United Kingdom of Great Britain and Ireland was established in 1801. The Irish Potato Famine of the 1840s led as many as 1.5 million people to emigrate, and the British government's grudging and ineffective relief measures built momentum for Irish Home Rule. The Easter Rising (1916) was followed by virtual civil war (1919–21), during which the Irish Republican Army used guerrilla tactics to force the British government to negotiate. The Catholic majority in southern Ireland favoured complete independence, and the Protestant majority in the north preferred continued union with Britain. Southern Ireland was granted dominion status and became the Irish Free State in 1921, and in 1937 it adopted the name Éire (Ireland) and became a sovereign independent country. It remained neutral during World War II. Britain recognized the status of Ireland in 1949 but declared that cession of the northern six counties (Northern Ireland) could not occur without the consent of the Parliament of Northern Ireland. In 1973 Ireland joined the European Economic Community (later the European Community); it is now a member of the European Union. The last decades of the 20th century were dominated by sectarian hostilities between the island's Catholics and Protestants over the status of Northern Ireland. The Irish government played a pivotal role in negotiating and winning public support for the Belfast Agreement (1998), which gave the country a consultative role in the affairs of Northern Ireland and modified Ireland's constitution to remove its claim to the territory of the entire island.

Learn more about Ireland with a free trial on Britannica.com.

International organization whose purpose is to remove barriers to trade in industrial goods among its members. The EFTA's current members are Iceland, Liechteinstein, Norway, and Switzerland. It was formed in 1960 by Austria, Denmark, Norway, Portugal, Sweden, Switzerland, and Britain as an alternative to the European Economic Community (EEC). Some of those countries later left the EFTA and joined the EEC. In the 1990s Iceland, Liechtenstein, and Norway joined the European Economic Area, which also included all members of the European Union. Each country in the EFTA maintains its own commercial policy toward countries outside the group.

Learn more about European Free Trade Association (EFTA) with a free trial on Britannica.com.