Trade diversion is when nonmember nations reroute their exports to member nations with the lowest external trade barriers.

Name: Trade diversion is when nonmember nations reroute their exports to member nations with the lowest external trade barriers.
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Trade diversion occurs when a country imports goods from a member country of a trade agreement rather than from a non-member country, even if the non-member's goods are cheaper, due to the preferential treatment within the trade agreement.

Trade Diversion Is When Nonmember Nations Reroute Their Exports to Member