Abstract

Multiple negotiating rounds of the GeneralAgreement on Tariffs and Trade (GATT) and World TradeOrganization (WTO) since 1947 have conferred economicbenefits through liberalized international trade. Agrowing body of evidence also points to linkagesbetween liberalized trade and damage to the globalenvironment, ecology, and natural resource base.Ironically, the increased economic well-beingconferred by trade liberalization ultimately providesthe basis for improved environmental protection. It isthe interim environmental damage due to tradeliberalization that is controversial and needingamelioration. The proposition here is to promotefurther trade liberalization, but only as long asenvironmental ethics and sustainability issues aresatisfactorily addressed. Trade liberalization shouldnot be permitted at the expense of adequateenvironmental protection and sustainability. FutureWTO rounds need to address both development benefitsand environmental ethics issues in a net socialwelfare maximization setting.