Is free trade better than restricted trade or not ?

Yes, free trade in general is better but there must be some government imposed restrictions based on moral / ethical / religious values. For example, free trade would be totally promoted, encouraged and incentivised in a certain country, but if someone imports illegal / harmful / non-Shari^ah compliant products, then they must be stopped. This kind of restriction is the only restriction when it comes to the concept of free trade.