Introduction

Until recently international trade theory left environmental impacts outside its purview. Now, when they are linked, free trade is often depicted as either a scourge or savior of the world's natural resources. Supporters of free trade rightfully point out that trade brings higher income, modern technology, and better access to environmentally friendly products and techniques. Unfortunately, opponents of unrestrained trade can claim with equal justification that it also has often led to increased pollution and natural resource depletion. In Thailand, rapid economic growth, led mainly by increased international trade, has had dramatic impacts upon the country's physical environment and its natural resource endowment. In addition to current damage to humans and the well-being of the natural ecosystems, these impacts will adversely affect the nation's long-term economic capabilities. Thailand's potential for sustainable development is being challenged. This chapter analyzes the ways in which trade affects Thailand's environment, and in turn, the effects on trade of measures taken to ensure environmental quality. It identifies the key policy measures that are needed for Thailand to reap local benefits while addressing global concerns.

Thailand's Trade-Environment Profile

Based on a shift from agriculture to manufacturing and the accompanying movement of people from rural to urban areas, Thailand emerged as one of the world's fastest growing economies. Real GDP growth rates averaged over 10 percent annually in the late 1980s and 7.5 percent for 1991–1996.