Trade Deflection
The movement of goods or components of goods from outside a trading arrangement to a country within such an arrangement in order for the seller to benefit from trading preferences.
For example Italy and France are part of a regional trade agreement, namely the European Union but Turkey is not. If a Turkish car manufacturing company XYZ is able to move its production to Italy and then export to France, then XYZ has participated in trade deflection.
For example Italy and France are part of a regional trade agreement, namely the European Union but Turkey is not. If a Turkish car manufacturing company XYZ is able to move its production to Italy and then export to France, then XYZ has participated in trade deflection.