One of the sacred canons of the antiglobalization movement is that globalization of trade is bad for the environment. Free-trade enthusiasts, on the other hand, would have us believe that free markets promote wealth (probably true) and that wealth is good for the environment (possibly true, at least some of the time). The truth is probably somewhat more complex. On the antiglobalization side, there are situations in which free trade, coupled with lax regulation, will encourage resource exploiters to pass along significant environmental externalities to their compatriots, achieving enhanced profits while diminishing the wealth and environmental well-being of their countries.

On the free-trade side, however, there are certainly situations in which protectionist regimes lead to government-protected environmental destruction for the sake of protecting otherwise unprofitable industries. Japan's whaling industry is an oft-cited example. Here in the United States, one of the most egregious cases is that of the sugar industry.