There is growing consensus that new international rules and principles are needed to reconcile conflicts, and promote complementarities between trade and environmental goals. The issue is especially acute for very poor countries striving for rapid economic growth. Esty, a former Environmental Protection Agency official with extensive experience in trade and environmental negotiations, examines the vital connections between trade, environment and development. He argues that current international trade rules and institutions must be significantly reformed to address environmental concerns while still promoting economic growth and development. Esty offers new international rules and principles to help make trade and environmental policies work together to better achieve sustainable economic progress. He concludes with recommendations for a Global Environmental Organization (GEO) to promote simultaneous achievement of trade environmental goals.

Conditions on the US-Mexico border are often so deplorable that they seem "made for TV." Air and water pollution blighted northern Mexican cities long before NAFTA was a glimmer on the political horizon. Not surprisingly, when NAFTA became a political reality, environmentalists reacted. They argued, among other things, that commercial competition would weaken environmental standards in all three countries, and that industrial growth in Mexico would further damage its weak environmental infrastructure. The demands for action against current and potential abuses posed a serious obstacle to the completion of NAFTA negotiations. A side accord -- the North American Agreement on Environmental Cooperation (NAAEC) -- helped alleviate some of these concerns. But in the aftermath of NAFTA's economic success, poor living conditions persist in most of Mexico. Many environmental groups blame NAFTA and, drawing on its experience, now oppose new trade initiatives.

Does the NAFTA record on the environment since 1994 justify its criticism? Seven years is too short to redress decades of environmental abuse, but it is not too soon to assess NAFTA's achievements and shortcomings in meeting its environmental objectives. In this analysis, the authors review (1) the environmental provisions of the NAFTA; (2) the NAAEC; (3) the situation at the US-Mexican border; and (4) the trends in North American environmental policy. They emphasize that the environmental problems of North America were not the result of NAFTA nor was the NAAEC devised to address all of them. But with its huge success in expanding free trade, NAFTA has concentrated population and environmental abuse at the US-Mexico border -- where it ismost visible to Americans.

The authors offer recommendations to better NAFTA's environmental dimension in all three countries, and improve living conditions where economic growth is greatest -- at the US-Mexican border. It makes more sense to tackle the shortcomings than to lament NAFTA and the economic growth it promotes.

Asia Pacific countries have experienced extraordinary economic growth in recent years. But the region also suffers from choking air pollution, fouled water, ravaged forests, depleted fisheries, and other environmental problems. Eager to promote further growth, governments in the region have embarked on an ambitious program of economic integration through the Asia Pacific Economic Cooperation (APEC) forum. In this volume, Dua and Esty argue that APEC's trade and investment liberalization can be compatible with environmental protection. They stress, moreover, that true prosperity and the APEC vision of a "community of Asia Pacific economies" cannot be achieved without attention to public health and ecological threats, resource management issues, and tensions at the economy-environment interface. The authors identify the issues that must be dealt with internationally and propose an ambitious environmental action agenda for APEC that would play an important role in that strategy.