Example
An example of trade diversion is the UK's import of lamb. Before Britain joined the EU, most lamb imports came from New Zealand, the cheapest lamb producer. However, when Britain joined the EU the common external tariff made it more expensive to import lamb from New Zealand than from countries inside the union, thus France became the majority exporter of lamb to the UK. Trade was diverted from New Zealand and created between France and the UK.
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“Our intellect is not the most subtle, the most powerful, the most appropriate, instrument for revealing the truth. It is life that, little by little, example by example, permits us to see that what is most important to our heart, or to our mind, is learned not by reasoning but through other agencies. Then it is that the intellect, observing their superiority, abdicates its control to them upon reasoned grounds and agrees to become their collaborator and lackey.”
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