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Economics Free trade is when all the barriers that prevent countries from trading with each other are removed, market forces operate to provide the best allocation of resources and maximise world economic welfare. The world trade organisation was set up in 1995 to encourage free trade in goods and services and succeeded the general agreement on tariffs and trade. The aim of the world trade organisation is to help trade flow smoothly, freely, fairly and predictably. The European union evolved from the European coal and steel community, which was formed in 1951 as a response to the first and second world wars to try to ensure peace in Europe. This became the European Economic Community in 1965, which in turn became the European union in 1992 following the signing of the Maastricht treaty. The 25 members of the European union are: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece,...

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