trade diversion
trade diversion noun: the changing of import sources as a result of political agreements, rather than to increase mutual benefit.
Noun
trade diversion (countable and uncountable, plural trade diversions)
- The changing of import sources as a result of political agreements, rather than to increase mutual benefit.
- 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[…]1987, Robert Mitchell Stern, Philip H. Trezise, John Whalley, University of Michigan, University of Western Ontario. Centre for the Study of International Economic Relations, Perspectives on a...
- First, the lowering of trade barriers among members leads to trade diversion from outside suppliers to firms in member countries[…]1992, Gerhard Pohl, Piritta Sorsa, European integration and trade with the developing world
Forms of trade diversion
| plural | trade diversions |
|---|
Origin of trade diversion
* Credited to Jacob Viner in his 1950 book The Customs Union Issue.
Questions about trade diversion
- What does trade diversion mean?
- Trade diversion means the changing of import sources as a result of political agreements, rather than to increase mutual benefit.
- What part of speech is trade diversion?
- Trade diversion is a noun.
- What is the plural of trade diversion?
- The plural of trade diversion is trade diversions.
Words near trade diversion in the dictionary
Source and license
Adapted from Wiktionary: trade diversion (page history and authors). Text available under the Creative Commons Attribution-ShareAlike 4.0 license. Word.ws reformatted the entry and added links. Wiktionary data of 2026-09-02.
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Cite this entry: “trade diversion.” Word.ws, https://word.ws/trade_diversion. Based on Wiktionary, CC BY-SA 4.0.