The environmental impacts of trade liberalization have stimulated considerable discussion in recent decades (Grossman and Krueger 1993; Antweiler, Copeland and Taylor 1998; Frankel 2009). Despite the substantial body of literature that has analyzed the impact of trade liberalization on the environment, because the empirical evidence is split there is no clear consensus on whether trade openness leads to an adverse impact on the environment. Thus, the accelerated development of regional and international trade agreements over the past decade has generated increasing concern over international trade’s potential negative environmental consequences, e.g. greenhouse gas (GHG) emissions.