Continental Trade and Environmental Policy

Abstract

In this paper we examine the relationship between international trade and environmental policies in the context of a regional trading agreement, with special reference to the North American Free Trade Agreement(NAFTA). Our interest was sparked by the renowned trade conflict on tuna between Mexico and the United States in which the Us used trade policy (an embargo on imports of tuna) in order to pursue an environmental goal (the protection of dolphins, that are frequently caught and die in the nets of Mexican tuna fishermen). This bilateral dispute highlighted some of the inadequacies of the current multilateral trading system in dealing with environmental problems; indicating that, in the absence of a significant change in the General Agreement on Tariffs and Trade (GATT), some other mechanism is needed in order to resolve disagreements over environmental issues.