IN SEARCH OF A MECHANISM TO RECONCILE ENVIRONMENT AND TRADE: A SOLUTION IN SUSTAINABLE TRADE

We can’t deny that there are conflicts between regulations pertaining to trade and the environment. Proponents of trade liberalisation argue that for the upliftment of a country’s economy, there should not be any restriction on trade. They contend that trade can contribute to economic growth, and economically advanced countries will invest in preserving the environment. Conversely, environmentalists argue that the liberalisation of trade has a negative impact on the environment, and for this reason, trade restrictions should be imposed to preserve the environment. There is also debate between developed and developing countries regarding trade and environmental regulations; the former follow strict environmental regulations, while the latter favour liberal ones. Earlier studies showed the negative impacts of trade on the environment and suggested restrictions on trade for the preservation of the environment. This article tries to show that trade has both positive and negative impacts on the environment. To reconcile the dispute between trade and the environment and to remove the negative impacts of trade on the environment, sustainable trade practices are important. This article also demonstrates that sustainable trade practices can accelerate environmental soundness along with economic growth. In this regard, a ‘global environmental organization’, in cooperation with trade regulatory organisations, can act as a regulatory body to reconcile the common disputes regarding trade and the environment. This article employs a theoretical research approach, and also used a correlational research method where the interaction between trade theories and environmental principles is explored to reconcile economic development and environmental quality