International trade is regarded, in most growth models, as an "engine" of growth, which is capable of propelling the economies of participating nations to a stage of sustained growth. It is increasingly becoming evident, however, that trade has serious negative consequences on the environment of member countries. This paper analyses the influence of foreign trade on the environment in Tanzania, and focuses its attention especially on the reform period that started in the mid-1980s. The conclusion is that while international trade is undeniably beneficial to Tanzania, there is an urgent need to balance the benefits of trade with the costs it inflicts on the environment. Once the balance is struck, trade will lead to a sustainable development in Tanzania.
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