Free trade allows nations to trade freely with each other. However, trade barriers do exist, with government-induced restrictions on international trade. International trade drives the prosperity of America and other nations. Trade agreements are needed for establishing a trade relationship with countries. Trade in goods, services, and resources benefits both trading partners. A benefit of free trade is that it promotes competition and deters monopoly. The purpose of this chapter is to provide an overview of the trade barriers and trade agreements, the benefits of free trade agreements, the risks of free trade, and the pros and cons of trade barriers.