This paper introduces and briefly discusses the economics of two important trade and environment policy issues--international harmonization of environmental standards and the use trade measures for environmental purposes. Both issues are likely to generate lively international debate among environmentalists, industry representatives, and trade negotiators over the next few years. As the international community seeks new multilateral rules in these areas, agricultural producers will want to know how they will be affected. Thus, this paper also examines the potential impacts of environmental policy on the competitiveness of commodities unique to the Southern region of the United States.