International Trade and Sustainability

offering a useful perspective to deal with the changing environments. Pherigo et al. (1999) focus on the number of participants, the number of interactions, and inter-organizational cooperation. Mitleton-Kelly (2006) has proposed the development of innovative responses. Meek (2008) proposed for citizen-centered management. Koppenjan and Ensernik (2009) advocated for public-private cooperation for maintaining sustainability. The central theme of these advocates is cooperation between formal and informal actors both within and internationally.

InternatIonal trade and sustaInabIlIty The conservative movement of the 1980s had spurred a trade liberalization movement culminating in the North American Free Trade Agreement (NAFTA) and other regional agreements based on the elimination of the tariffs and other barriers. One of the concerns of trade liberalization is the damage to the environment because of the increased industrialization. Stonehouse (2000) asserts that there is a growing body of literature supporting the linkage between trade liberalization and environmental damage. The developed world, in its drive to save costs, takes advantage of trade liberalization to invest in developing countries. The multinational countries from the developed world move to developing countries to take advantage of the relaxed environmental regulations. On the same token, there was concern that the stricter regulations in EU could reduce competition and lead to industrialization and environmental damage because the polluting industries would locate internationally (Neary 2006). At present, developing countries consider environmental regulations as a luxury since they have to take care of essential services before spending a large share of the budget on the environment (McClain 1994).

The main international organization responsible for the implementation of trade regulations is the World Trade Organization WTO). The major objective of the WTO is to ensure trade relations among the nations. It promotes trade liberalization, settles trade disputes, and bans discrimination in trade practices. At the same time, the WTO strives to protect the environmental sustainability. However, there is no specific agreement under the WTO for environmental protection. Still, sustainable development is one of the major goals of the WTO. Each nation has a responsibility to implement the trade policy that is not detrimental to environmental protection.