According to general economic theory, the selective application of free trade agreements to some countries and tariffs on others can lead to economic inefficiency through the process of trade diversion. It is effective for a good to be produced by the country, which is the most profitable producer, but that is not always the case when a producer has a free trade agreement at great expense, while the low-priced producer is priced at a high price. The application of free trade to the producer at high costs and not to a low-priced producer can lead to a reorientation of trade and a net economic loss. That is why many economists place as much importance on negotiations on global tariff reductions as the Doha Round.  George believes that the general argument of free trade is insufficient. He argues that the removal of protective tariffs alone is never enough to improve the situation of the working class, unless it is accompanied by a shift towards property taxes.  Free trade agreements, which are free trade zones, are generally outside the multilateral trading system. However, WTO members must inform the secretariat when new free trade agreements are concluded and, in principle, the texts of free trade agreements are reviewed by the Committee on Regional Trade Agreements.  Although a dispute in free trade areas is not the subject of litigation within the WTO`s dispute resolution body, “there is no assurance that WTO panels will comply and reject jurisdiction in a particular case.”  Free trade economists believed that trade was the reason why some civilizations prospered economically. Thus, Smith highlighted the intensification of trade as a reason to prosper not only for Mediterranean cultures such as Egypt, Greece and Rome, but also for Bengal (East India) and China. The great prosperity of the Netherlands, after having dered Spanish imperial domination and pursued a free trade policy, made the free trade/mercantilist conflict the main economic issue for centuries. Free trade policy has been fought over the centuries with mercantilist, protectionist, isolationist, socialist, populist and other policies.
Two simple ways to understand the proposed benefits of free trade are by David Ricardo`s theory of comparative advantage and by analyzing the impact of a tariff or import quota. An economic analysis of the law on supply and demand and the economic impact of a tax can be used to highlight the theoretical pros and cons of free trade.   As the Japanese economy has slowed and lost some of its appeal to foreigners, external pressure has eased. But the same loss of momentum has created internal pressure on reforms. In recent years, Japan has become a new advocate of free trade. In 2013, it participated in discussions on the Trans-Pacific Partnership (TPP), a trade agreement between the peripheral Pacific countries, and is now one of seven countries that are part of the TPP (which China excludes) and the proposed comprehensive regional economic partnership (excluding the United States).