Trade and environment: viewed by some as one of the new trade issues. It is concerned with the issues arising from the interaction between measures to expand international trade and those aimed at protecting the environment. There is a view that virtually all trade-environment issues fall within one of the following categories: (i) the trade effects of environmental regulation of protection, (ii) the trade effects of environmentally-related product standards, (iii) the use of trade measures to secure international environmental objectives and (iv) the environmental effects of trade and trade liberalization. Hoekman and Kostecki list four main reasons offered by its proponents for the inclusion of this issue in the WTO agenda. First, production and consumption activities in one country may have a detrimental environmental impact on other countries. Second, some environmentalist groups have propounded the view that trade itself is bad for the environment because of its potential to spread pollution. Third, some consider that environmental measures and policies are bad for trade because they might allow countries with low environmental standards to be more competitive than those that have to bear the cost of higher standards. Fourth, environmental policies may unnecessarily restrict trade as shown in the tuna cases. There is much argument about the possibility that differences in environmental standards might lead to cost differentials which could be exploited by those enjoying lower costs. The proposition that trade measures ought to be used in support of environmental objectives generally is not favoured by trade-policy makers because it might lead to a whole new array of protectionist measures only tenuously connected with the aim of environmental protection. Still, some multilateral environment agreements already contain significant measures covering international trade. A work program is now under way on these issues in the WTO Committee on Trade and Environment. The Committee covers