Trade liberalization can improve environmental protection and lead to better enforcement of environmental laws.

• Countries with higher national incomes tend to have stronger environmental protections and lower rates of pollution.
• To achieve environmental sustainability, countries need good environmental laws and effective enforcement of those laws. Liberalized trade produces higher incomes and economic growth that make it possible for countries to improve their environmental laws and law enforcement.
• Liberalized trade can help improve environmental protection by lowering the barriers to the sale of environmental technologies; enabling new investments in environmental infrastructure; and making it easier for environmental scientists, engineers and technicians to provide services to developing countries. Drinking water supply, wastewater treatment and solid waste management are subsectors where foreign direct investment and cross-border services are particularly important for improved public health and environmental protection.

Trade liberalization does not lead to increased pollution or lower environmental standards.

• Contrary to popular myths, trade agreements do not prevent national governments from taking steps to protect the environment. The World Trade Organization (WTO) agreements, the North American Free Trade Agreement (NAFTA) and the more recently negotiated free trade agreements take environmental and health and safety concerns into consideration and recognize the right of all governments to take measures to protect the environment. Trade agreements only require that such measures must be applied without discrimination.
• Recently negotiated free trade agreements include explicit safeguards for environmental protection. U.S. free trade agreements with Singapore, Chile, Australia, Morocco, Bahrain and Central America require the parties to (1) effectively enforce environmental laws, (2) ensure that they do not weaken their environmental laws to encourage trade or investment, and (3) ensure that violations of their environmental laws are subject to sanctions by legal procedure.
• NAFTA established institutions and a formal process through which the public may raise concerns about environmental law enforcement through the North American Commission on Environmental Cooperation. Under the auspices of the commission, NAFTA partners have undertaken a wide range of cooperative programs and technical exchanges aimed at the protection of species and ecosystems.