Does trade lead to a race to the bottom in environmental standards? Another look at the issues

Economic growth is not a panacea for environmental quality; indeed, it is not even the main issue. What matters is the content of growth-the composition of inputs (including environmental resources) and outputs (including waste products). — Arrow et al. (1995)

INTRODUCTION

With no let-up in the pace of globalization and advances in technology, the interrelationship between trade and the environment has become a pressing issue across the globe. Heated discussions abound in various fora involving all sectors: from the streets to civil society, the government, academic and business communities; at the national, bilateral, regional and multilateral levels. It is crucial to understand and address the environmental and sustainability issues that could accompany the escalating trend in trade and globalization.