As the demand for environmental quality is increasing and as GATT rules monitored by the WTO are not very suitable for environmental protection, either a new international environmental organization may be formed soon or new environmental regulations may be added to GATT. In either case, understanding of the interactions between trade and the environment will be vital. This book presents both the theoretical and empirical exposition of (i) the impact of trade liberalization on environmental quality; (ii) the impact of environmental regulations on international competitiveness; and (iii) strategic trade and environmental policies. An important feature of this work is that it brings together the reciprocal interactions between trade and the environment. It can be used as the main or complementary textbook for a course on trade and the environment. Researchers and students in trade and/or environment fields as well as policy makers should benefit from this book.