Trade liberalization harms the environment


Does free trade harm the environment?

Environmentalists argue that trade liberalization harms the environment. The decisions of the World Trade Organization (WTO) in particular have been the subject of much criticism. Carbaugh has described environmentalists' three primary assertions (Carbaugh, 2004):

1. Trade liberalization leads to a "race to the bottom" in environmental standards.

2. Trade liberalization conflicts with morally-conscious environmental policies.

3. Trade liberalization encourages trade in products that create global pollution ("pollution havens").

What is the argument for and against each of these?

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Macroeconomics: Trade liberalization harms the environment
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