Abstract:

The emerged of environmental concerns during NAFTA negotiation led to the foundation of The North American Agreement on Environmental Cooperation (NAAEC) and Commission for Environmental Cooperation (CEC) to deal with trade effect on environment under NAFTA. Beside the large area of trade liberalization, NAFTA is also the first trade liberalization agreement that included the environmental issues. The relation between trade and environment is complex and fundamental. Both trade and environment effects on each other in various ways such as the restriction of trade growth and the environmental deterioration. This article aims to explain how trade and environmental regulations became related in NAFTA and why environmental issues are so important in trade agreement, review NAFTA environment provisions, the structures and works of NAAEC and CEC, environment under NAFTA, and the impact of trade under NAFTA on environment and environmental regulations.