Rules that govern trade flows globally appear to significantly modulate economic, environmental and social change [UNEP, TISD, 2000]. Trade and investment are also looked upon as the central features of strategies for development. Accordingly it is important to closely integrate trade and environmental policies to maximize benefits that can arise out of trade for human welfare and make economic development more sustainable [WCED, 1987; Schulse and Ursprung, 2001]. Increasing inequity results from the possibility that benefits of growth are not evenly distributed. In spite of the fact that several multi lateral agreements have entered into force, apart from regional agreements, the results in combating environmental stresses are not conspicuous [UNEP, USD, 2000].

The Montreal Protocol on Substances that deplete the Ozone layer 1987, the Basel Convention on Trans-boundary Movement of Hazardous Wastes and the Disposal 1992, The Framework Convention on Climate Change 1992, Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade (PIC) 1998 and the Cartagena Protocol on Bio Safety 2000 are some of the key multilateral environmental agreements with trade provisions. The Basel Convention centers on the development of strategies for controlling the movement of hazardous wastes. Technical difficulties in est blishing clear differences between wastes and materials for recycling are quite apparent in this case. Prior Informed Consent (PIC) refers to the need to inform authorities in importing countries about the hazardous nature of chemicals being shipped.