Liberalization of foreign trade refers to the relaxation provided by the government in foreign trade laws and policies. It involves the removal or reduction of restrictions or barriers on the free exchange of goods between nations, such as tariffs, duties, surcharges, licensing rules, and quotas. The goal of liberalization is to promote free trade, which allows countries to trade goods without regulatory barriers or their associated costs. This reduced regulation decreases costs for countries that trade with other nations and may ultimately result in lower consumer prices because imports are subject to lower fees and competition is likely to increase.

Liberalization of foreign trade can benefit stronger economies but put weaker ones at a greater disadvantage. However, further trade liberalization in areas such as agricultural products and labor-intensive manufactures, particularly by both industrial and developing countries, would help the poorest escape from extreme poverty while also benefiting the industrial countries themselves.

In summary, liberalization of foreign trade involves the relaxation of government restrictions on foreign trade laws and policies, which can promote free trade and ultimately lead to lower costs for countries that trade with other nations.