ABSTRACT

Most of the research that has already been done on the relationship between expanded agricultural trade and environmental protection is theoretical, incomplete, and lacks sufficient empirical content. As international trade and environmental agreements proliferate, advocates of freer trade and environmental protection clash more frequently and with greater vehemence. The environmental effects of expanded agricultural trade fall into three categories: production effects, introduction of harmful nonindigenous species, and “bootstrapping” of environmental standards due to income growth. In general, the increased environmental stress stemming from expanded trade yields the same results as increased production for domestic consumption. Possible program responses will differ only if foreign markets demand products that require special production processes involving different environmental stresses. Some aspects of agricultural production that cause environmental problems are regulated. Certain pesticides must be registered, point-source water pollution from confined-animal feeding operations must be controlled, and endangered species must be preserved.