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Trade And The Environment: Efficiency, Equity And Sovereignty Considerations


  • Sinner, Jim


The Uruguay Round trade agreement includes a new programme of work to examine the relationship between trade and environmental policies. Environmental groups remain suspicious that trade liberalisation will undermine or discourage improvements in environmental standards. In this paper, the use of trade measures to protect producers from competition with goods produced under less stringent environmental standards is examined. It is shown that such measures will not improve national welfare, and may undermine environmental policies. Failure of a government to enact appropriate environmental policies constitutes an implicit subsidy, and equity considerations suggest that this will continue to create pressure for changes to the GATT to protect producers who are meeting higher standards.

Suggested Citation

  • Sinner, Jim, 1994. "Trade And The Environment: Efficiency, Equity And Sovereignty Considerations," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 38(02), August.
  • Handle: RePEc:ags:ajaeau:22951

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    References listed on IDEAS

    1. John Quiggin, 2012. "Introduction," Introductory Chapters,in: Zombie Economics: How Dead Ideas Still Walk among Us: With a new chapter by the author Princeton University Press.
    2. Larry J. Martin, 1981. "Quadratic Single And Multi-Commodity Models Of Spatial Equilibrium: A Simplified Exposition," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 29(1), pages 21-48, February.
    3. Onal, Hayri & McCarl, Bruce A, 1989. "Aggregation of Heterogeneous Firms in Mathematical Programming Models," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 16(4), pages 499-513.
    4. C. Richard Shumway & Anne A. Chang, 1977. "Linear Programming versus Positively Estimated Supply Functions: An Empirical and Methodological Critique," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(2), pages 344-357.
    5. James G. MacKinnon, 1975. "A Technique for the Solution of Spatial Equilibrium Models," Working Papers 199, Queen's University, Department of Economics.
    6. T. Takayama & G. G. Judge, 1964. "An Interregional Activity Analysis Model for the Agricultural Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 46(2), pages 349-365.
    7. MacAulay, T. Gordon & Batterham, Robert L. & Fisher, Brian S., 1989. "Solution Of Spatial Trading Systems With Concave Cubic Programming," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(03), December.
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    International Relations/Trade;


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