No, trade deflection and trade diversion are not the same. Trade deflection occurs when trade flows are redirected from one country to another due to changes in trade policies or tariffs, often bypassing certain barriers. In contrast, trade diversion refers to the shift of trade from a more efficient producer to a less efficient one because of preferential trade agreements or tariffs that favor the latter. While both concepts involve changes in trade patterns, they arise from different mechanisms and have distinct implications for global trade dynamics.
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