Why is free trade important?
As an open economy the UK benefits from a liberalised world trade system. It creates new opportunities to increase trade with other developed and developing countries. It encourages the development of a strong system for intellectual property rights, including copyright, trademarks and patents. It is vital to protect innovative products and technology from counterfeiting. There are mechanisms that aim to create the conditions to aid global economic growth, with particular emphasis in helping developing counties. This is known as “trade facilitation”, which focuses on simplification and rationalisation of customs and other administrative procedures that get in the way of trading across country borders.
