The recent acceleration of regional and global integration of national economies has brought with it greater scrutiny of domestic policies that affect the competitiveness of industries in the international marketplace. Simultaneously, concerns about resource depletion and environmental degradation at national, regional and global levels have been growing rapidly, leading to calls for policies to slow resource exploitation and enforce stricter environmental standards. Together these developments have caused an entwining of policies relating to trade, foreign investment, and the environment. That entwining has the potential to bring about good outcomes in terms of the economy and the environment, but unless it is carefully managed there is the risk that both the economy and the environment will suffer.