ABSTRACT
Environmentalists and some political leaders are making a strong effort to inject environmental concerns into the development of trade policies and related institutions. This chapter examines the motivation for the interest in coordination of trade and environment policies during the public debate surrounding the North American Free Trade Agreement and the Uruguay Round agreement to strengthen and extend the General Agreement on Tariffs and Trade. It reviews evidence regarding the effects of trade liberalization and economic growth on environmental quality and the effects of domestic environmental policy on trade flows. The chapters considers the domestic and international political forces that create demand for a linkage between trade and environment policy. It assesses the environmental implications of the Uruguay Round agreement and the likely positions of various groups in future discussions surrounding these issues. Direct comparisons of national environmental policies and costs are another potential source of insight into the competitiveness issue.
