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As the demand for environmental quality is increasing and as the current GATT rules monitored by the WTO are not very suitable for environmental protection, either a new international environmental organization may be formed soon or new environmental regulations may be added to GATT. In either case, understanding of the interactions between trade and the environment will be vital. "Trade and the Environment" presents both the theoretical and empirical exposition of the impact of trade liberalization on environmental quality; the impact of environmental regulations on international competitiveness; and strategic trade and environmental policies. An important feature of "Trade and the Environment" as compared to earlier books is that it brings together the reciprocal interactions between trade and the environment. It can be used as the main or complementary textbook for a course on trade and the environment.