EXECUTIVE SUMMARY

A growing number of developing countries loo to tr!de !nd investment !s ! centr!l p!rt of t"eir str!tegies for development# !nd tr!de consider!tions !re incre!singl$ import!nt in s"!ping economic polic$ in !ll countries# developed !s well !s developing% At t"e s!me time# "owever# most of t"e world&s environment!l indic!tors "!ve been ste!dil$ deterior!ting Intern!tion!l tr!de constitutes ! growing portion of t"!t growing sc!le# m! ing it incre!singl$ import!nt !s ! driver of environment!l c"!nge% As economic glob!li'!tion proceeds !nd t"e glob!l n!ture of m!n$ environment!l problems becomes more evident# t"ere is bound to be friction between t"e multil!ter!l s$stems of l!w governing bot"% As t"e integr!tion of tr!de !nd environment is inevit!ble in pr!ctice# ! proper fr!mewor wit"in t"e (T) mec"!nism itself is essenti!l to stri e ! b!l!nce between t"e two% E*istence of uncert!inties# !mbiguities !nd conflict situ!tion between (T) !nd environment is not denied% T"ere !re cert!in gre$ !re!s w"ic" re+uire !ttention !nd t"e$ "!d been sub,ect m!tter of deb!te between countries !t intern!tion!l negoti!tions !nd before t"e (T) dispute settlement bod$% Conflict of rel!tions"ip e*ist between Multil!ter!l Environment!l Agreements -MEAs. !nd (T)% Rel!tions"ip between t"e two is still to be cl!rified% Suc" ! conflict cre!tes leg!l insecurit$ !nd is in,urious to t"e world tr!ding s$stem% (T) t"oug" specific!ll$ me!nt for tr!de !nd not for m!n!ging environment "!s no option but to re!li'e its intern!tion!l public polic$ ob,ective% )ptim!l polic$ is to "!ve !n !ppropri!te environment!l polic$ in pl!ce# to loo !fter t"e environment# !nd t"en to pursue free tr!de to re!p t"e g!ins from tr!de% T"ere !re pr!gm!tic steps t"!t t"e intern!tion!l communit$ is re+uired to t! e to more intelligentl$ !melior!te tr!de/induced environment!l degr!d!tion !nd to better b!l!nce free tr!de wit" ecologic!l protection% T"e lin s between tr!de !nd t"e environment !re multiple# comple* !nd import!nt%% Tr!de liber!li'!tion is of itself neit"er necess!ril$ good nor b!d for t"e environment% Its effects on t"e environment in f!ct depend on t"e e*tent to w"ic" environment !nd tr!de go!ls c!n be m!de complement!r$ !nd mutu!ll$ supportive% A positive outcome re+uires !ppropri!te supporting economic !nd environment!l policies% % T"e welf!re benefit t"!t t"e (T) cre!tes is ver$ l!rge% Cre!ting ! gener!l rig"t to restrict tr!de on environment!l grounds t"re!tens t"e c!p!cit$ of t"e (T) to provide t"!t benefit !nd !dvoc!c$ of t"!t rig"t s"ows ! fund!ment!l disreg!rd for t"e welf!re benefit of t"e (T) s$stem% A fund!ment!l s"ift is occurring in t"e n!ture of cross/border conflicts implic!ting tr!de !nd environment!l concerns% Yet# it is one t"!t t"e public !t l!rge !ppe!rs to be missing% ("ile m!n$ !ssume t"!t C"in!# Indi!# !nd ot"er developing countries continue dr!gging t"eir feet on implementing environment!l policies# t"ese countries%