Meaning of trade diversion | Babel Free

Definitions

The changing of import sources as a result of political agreements, rather than to increase mutual benefit.

countable, negative, uncountable, usually

Examples

“Even if trade⟳ diversion is not important in aggregate terms or in relation to trade⟳ creation between the bilateral partners, it still represents an inefficient use⟳ of global resources[…]”

“First, the lowering of trade⟳ barriers among members leads to trade⟳ diversion from outside suppliers to firms in member countries[…]”

“An excessive increase⟳ in the share⟳ of intraregional flows is typically taken as an indication that trade⟳ diversion has been predominant and the regional integration programme has been welfare-reducing.”

CEFR level