Crossword Genius

Federate Republic corruptly with laissez-faire approach to economics, perhaps (4,5)

Ross

I believe the answer is:

free trade

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'federate republic' is the definition.
Although both the answer and definition are singular nouns, I can't understand how they can define each other.

I cannot understand how the rest of the clue works.

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(Other definitions for free trade that I've seen before include "International commerce without government interference" , "International commerce without restrictions" , "Interchange of commodities without hinder" , "Unregulated commerce" .)

I've seen this clue in The Irish Times.
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