This book assesses the magnitude of the effects of trade liberalisation on welfare and the environment in the context of a small open economy, and the degree to which these effects are influenced by environmental policy. It is expected that the results of this study will provide some direction for trade and environmental policies, and will help to fill part of the empirical vacuum in this field. These results will be widely applicable to open-market-based economies and to countries embarking on major liberalisation programs.