This paper is a component of the APEC project entitled “The Impact of Liberalisation: Communicating with APEC Communities”. This paper focuses on trade liberalisation, but it is also concerned with liberalisation of foreign direct investment (FDI). The review addresses not only the economic rationale for trade, but also the interface of trade with environmental, sovereignty, and other contemporary concerns.

• Introduction
• The Rationale for Trade and Liberalisation
• What is Liberalisation
• Trade and FDI Liberalisation
• Assessing Liberalisation
• Foreign Direct Investment
• Trade and Policy Coherence
• Trade and Adjustment
• Trade and the Environment
• Liberalisation, Governance, and National Sovereignty
• Conclusions