The liberalization of agricultural trade and the protection of environmental quality are often cast as conflicting objectives. In principle, both are necessary for social welfare improvement (Anderson, 1992). Hence, the policy approaches for each objective should complement each other. In practice, this complementarity is far from assured. The task of devising complementary policies is complicated by the vastly different cultures of production, trade and environmental interests. Nonetheless, with the next GATT round scheduled to take up environmental issues, this is an opportune time to identify approached that work in harmony rather than conflict.