In the land-based sectors, agricultural production generally is a source of carbon, while forestry may be thought to act as a sink. This paper focuses on new research examining the interaction of the two. The core of the research is the Lincoln Trade and Environment model (LTEM), a partial equilibrium model which links trade in NZ with the main trading countries overseas, through to production and associated environmental consequences . This paper reports on research expanding the model to include forestry from incorporating the capabilities of the Global Forest Products Model (GFPM) into the LTEM and hence producing an integrated model of agricultural and forestry land-uses for NZ and overseas. The paper extends the environmental modelling capabilities of the LTEM to include the impacts of climate change. The paper thereby reports on the development of a model of international trade that encompasses major agricultural commodities and forestry, complete with linkages and feedback with the environment and differentiated international markets. The paper then presents results of scenarios around changes in consumer behaviour and production using the new model.