In theory, WTO rules should ensure that a free trade agreement results in trade diversion.

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According to WTO rules, free trade agreements should not result in trade diversion. Instead, they should promote liberalization of trade and increased economic opportunities for all participating countries. Trade diversion occurs when a free trade agreement shifts trade from more efficient suppliers outside the agreement to less efficient suppliers inside the agreement. This is considered to be detrimental to the overall goals of free trade and is therefore not encouraged by the WTO.

In Theory, WTO Rules Should Ensure That a Free Trade