I wonder about he term "Free Trade". Goverments regulate trade for both imports and exports by using tariffs and other taxes. They encourage trade with other countries by negotiating treaties that limit and/or regulate the fees. They protect home-based industry by charging higher import rates and setting quotas for import goods made nationally. Its a delicate balance between nations to come to fair agreements and almost always some industries might lose, just as some might gain. The term "Free Trade" seems like an oxymoron because ultimatly someones gonna pay. Some Trade agreemants like NAFTA or the European Union are huge, complex treaties that have sweeping effects on economies. Border access, cheaper tariffs, cheaper labor, export gaurantees, loan, and other considerations are all factors in negotiating large trade agreemants. The political factors come from the benificial/detrimental factors that effect the voting population.
Capitalism is gaining money with the intent of making more money, by trading things worth money, for money. Goverments utilize the same process with regards to finance. The services they provide in exchange for a fee, ie. taxes. Though not necessarliy profit-driven philosophically like a corporation, goverments depend on some sort of profit to grow with thier populations.
Industry and commerce, the private-sector drivers of economy, capitalism manifest, Are the forces behind international or national trade. Even if a goverment agrees to cut tariffs, open borders to labor and export, and give service grants nothing is for free. There are always concessions made by any given player that can boost a home industry or hurt one abroad. The key to calling it "free trade" and getting away with it is maximizing the benifit for the homeland without bringing back to much of the detrimental from the negotiating table.
Anyway, thats how I see the mechanisms for free trade in a capitalist economy. One makes it harder for the other to exist philosophically. A capitalist only gives something away with the intent of making a profit back somehow, to protect the bottom line and stay in business. I think only a few things are actually free in a "free trade agreement" but the trade-offs can be mutually benifical on the whole. I depends on the nature of the agreement and the players involved.
Why did I write so much???? Im soooo sweepy, *Yaaaaaaaaaaaawn* I hope Im not the only one I put to sleep.
Any other perspectives or facts, Im a high school drop out, not a business major. My thoughts are from a laymans veiwpoint.