The Coordinated Development Of International Trade And Environment

With the rising wave of environmental protection in the worldwide, trade and environment issue has become one of the international economic issues. This problem is concerned by the international community and government growingly. In reality, the relationship between the environment and international trade has appeared as the conflict between environmental protection and international free trade. At the same time both of them is the goal people pursuit of. Therefore, how to coordinate the relationship between environment and free trade has become one important subject and an urgent task the international community facing with. Meanwhile, because of neglecting environmental protection, China's economic growth and the development of international trade have created enormous pressure on the environment in recent years, thus the coordinated development of environment and trade issues has become one responsibility of China's sustainable economic development.It is analyzed in further step by combining the economic and international trade theory. International trade and environment conflict come from market failure caused by exterior character of environment, making the current international market price could not reflect the environmental cost. Welfare analysis of trade liberalization impact on the environment shows that if the exterior character of environment has not been controlled, the welfare effects of international trade liberalization are not sure, but if the environmental costs was internalized, the benefits of international trade liberalization is positive in overall.Therefore, effective economic instrument is the basic coordination method. On the other hand, the starting point and focus of international trade policy and environmental policy in dealing with the environment and international trade issues are different, therefore environmental protection measures of different countries restrict the development of international trade. All of these provide the theoretical basis for the coordinated development of international trade and environment.The study founds that in order to solve the growing conflict between environment and international trade under environment protection, every country should consciously promote economic instruments which are the basic method in promoting internalization of environmental costs, such as environmental tax, pollution discharge rights and environmental labels. These environmental economic means are the fundamental way to coordinate international trade and the environment. However, the actual implementation of these environmental economic measures, particularly in solving global and cross-border pollution problems, is difficult. So the international community needs to cooperate effectively to resolve this problem. Besides, due to the imbalance of economic development and differences of policy, the coordination of environmental measure's international cooperation still needs the commitment of World Trade Organization. In addition, regional organizations and world environmental organizations can become an important form of cooperation. Finally, using empirical method analyzes the status of China's international trade and environmental conflicts and the solutions, so as to promote the balanced development of international trade and the environment.