THE EFFECTS OF ENVIRONMENTAL-POLICY TOWARDS AGRICULTURE ON TRADE - SOME CONSIDERATIONS

A growing awareness of environmental problems associated with agricultural production has led to the consideration, and in many cases the introduction, of more stringent environmental controls across industrialized countries. In theory, countries that introduce costly environmental regulations should experience a reduction in their international trade competitiveness in polluting commodities. In contrast, countries that fail to undertake an environmental protection programme presumably increase their export market share in the production of items that damage the environment. This Viewpoint investigates these potential agricultural trade effects and suggests that they are likely to be quite modest.