"The potency of the contention that fair trade or level playing fields constitute a precondition for Free Trade and that, therefore, harmonization of domestic policies across trading countries is necessary before Free Trade can be embraced to one's advantage, should not be underestimated today. It is nowhere more manifest, and compelling in its policy appeal, than in the area of environmental standards."
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Jagdish N. Bhagwati (1995) studied this question.