INTRODUCTION

The economy of the world has gone through a lot of modifications over the last period. With the help of population and income growth the pure value of economic activity has enlarged enormously. At the same time the economy of the world has become more globalized and there is some motive power for it: improvements in communication, reduction of trade and foreign investment barriers. International trade as the result of it got lower transaction costs what increased the volumes of trade significantly. Lower transaction costs enable countries to produce the good at which they are the best, to be specialized. Though, countries divided the production of specialized units all over the world.

The decrease in environmental sustainability followed the growth of economy, such as bio-diversity losses, deforestration, global warming, air pollution, exhaustion of the ozone layer, overfishing and others. Also the population growth is one of the reasons in this decrease in sustainability because more people, stronger the stress on the natural resources and ecology. Moreover, there is no any facts that the consumption of the population is decreasing. Integration of the world is leading to speed-up of economic growth. According to the trends environment is in danger until rough remedies are taken soften consumption of resources and polluting emissions.

Multilateral trading system is one of the reasons of the unhurried introduction of satisfactory environmental regulations and taxes. There are several reasons for it. The first one is that the WTO rules limit policy-making. Another one is that competitiveness of the world market does not give the opportunity for the political support of domestic market to improve environmental norms. Because the costs of working alone such as unemployment and loss in investments usually make countries not to hurry in implementing some environmental regulations.

Moreover the environmental fellowship is frightened that trade globalization will increase the effects of weak environmental policies in the world. For example, economic growth operated by trade can accelerate the environmental deterioration without satisfactory protection is set up.

There has been an active debate over the impact of trade liberalization on environment. This debate started by negotiations over the North American Free Trade Agreement and the Uruguay Round of GATT negotiations, which occurred when worries about global warming and industrial pollution were rising. The creation of World Trade Organization and discussions about future rounds of negotiations keep the debate in tense.

The environmental effects of economic integration was not the key worry after the reconstruction of international trading system. Just some indirect links were in the exception clause of GATT 1947, Article ХХ. This article let countries to bypass normal trading rules if it is needed for protection of human, animal or plant life, or to save exhaustible natural resources. During the first decades of GATT there was no any links made to the environmental sustainability, neither in the general text, nor in different trade debates. The problem firstly raised in the 1970s during the preparation for the UN Conference on the Human Environment, which