A Research On The Environment Pollution Incurred By International Trade

With the booming development of international trade and economic cooperation, the economic relationship between countries is closer and closer, and the economic growth speeds up accordingly. However, affected by the traditional International Economic Order and restricted by the practical economic conditions, most developing countries always neglect the factor of environment, which results in pillaged exploitation on resources and a blind eye to pollution emissions. With regard to foreign trade, they export huge amount of resource-intensive and pollution-intensive products at unreasonable low price, meanwhile import a lot of Hazardous Waste; with regard to FDI introduction, the investment in pollution-intensive industries account an excessively high proportion. Developing countries become the transfer targets of sunset industries from developed countries. Regardless of the environmental cost to develop its foreign trade in developing countries, causing serious pollution problems and making people's health and property suffered great losses.From a view of economics, this article uses the theory of market failure to analyze the reasons causing this problem. First of all, international trade and investment activities enable the externalities transferring between counties. Some of production and consumption in developed countries will cause environment pollution, therefore they have to pay considerable high price domestically; whereas in developing countries they only have to pay a small amount, which is much lower than the actual environmental cost, as the environmental consciousness is weak. Therefore, such production and consumption were shift to developing countries, and the externalities across national boundaries accordingly. In the next place, the quality of common goods for resources and environment brings "prisoner's dilemma", which led to environment pollution and resources depredation as lack of motive.In the following, this article points out measures to solve the conflict between trade and environment according to theory of cost internalization. The externality of environmental cost is the root of this conflict, so to cover it under product price is the fundamental policy. Measures like defining environment property rights, reasonable pricing, taxations, tradable pollution permits and implementing environmental standards are all effective ways.Lastly, aiming at specific circumstances in China this article tries to provide useful suggestions to promote harmonious development between trade and environment. Domestically, we shall be guided by the theory of "sustainable development", combine industry restructuring with trade restructuring, improve environmental laws and regulations, encourage the development of the environmental industry, and achieve common development step by step. Internationally, we shall actively participate international negotiation on trade and environment, strengthen communication and consultations, and create good international environment.