The second hypothesis is called factoral hypothesis (FEH). On the basis of this assumption, trade flows are determined by the quantity and nature of resources held by trading partners, in accordance with Heckscher-Ohlin Vanek`s theory of comparative advantage. Developed economies often have physical capital, while emerging economies generally have employment capital.  This is why developing countries tend to produce labour-intensive goods, while developed countries tend to produce more capital-intensive products that require more energy (Copeland-Taylor 2013). As a result, free trade agreements can further pollute developed countries. The World Trade Organization (WTO) has begun negotiations on some aspects of trade and environmental interdependence under the Doha Development Agenda (DDP). The U.S. Department of State`s Office of Environmental Quality and Transboundary Issues participates in the U.S. Interstate Trade and Environmental Policy Inter-Institutional Process at the WTO.
Levinson, A. (2009). Technology, international trade and environmental pollution due to U.S. production. American Economic Review, 99(5), 2177-92. Trade agreements can be concluded between developing, developed or developing and industrialized countries. Depending on the income level of countries contributing to the free trade threat, different assumptions about the impact of free trade agreements on greenhouse gas emissions have been developed. From 2007 to 2013, a series of annual updates were developed to monitor the evolution of environmental legislation in ATRs. A number of analysis reports are published and contain “a checklist for negotiators,” an “assessment framework” and “political trends and drivers” on environmental rules in ATRs. The 2007 publication “Environmental and Regional Trade Agreements” describes the state of the art in environmental regulation, ancillary restrictions and cooperation agreements with ATRs.
Since 2005, the OECD`s work on the regional trade agreement and the environment has been led by the Joint Group “Trade and Environment” (JWPTE). This work is also accompanied by regular workshops by several workshops for government officials and other experts in RTA and the environment. To achieve these goals, the United States and its free trade partners have included an environmental chapter in each free trade agreement. The commitments contained in the environmental chapters help ensure that our free trade partners have a comprehensive environmental framework and effective environmental management. In addition to free trade agreements, we have also negotiated environmental cooperation mechanisms that create a framework for cooperation with our free trade partners to develop their capacity to develop, implement and implement environmental protection and human health standards in the framework of achieving sustainable development goals. This helps to ensure that companies in these countries work in environmental standards similar to those of U.S. companies. The third hypothesis, the “Porter hypothesis,” starts from a race to the top (Porter, M. E., Van der Linde, 1995). On the basis of this assumption, developed countries can continue to adopt new and stricter environmental rules, which promote innovation and, in return, enhance the environmental quality of all parties contracting to the agreement.
 In Chapter 4 ” Technical barriers to exchanges undertake to work closely with the technical rules for testing and certifying products.” The objective of Chapter 5 “Health and Plant Health Measures” is to ensure that food security and animal and plant health do not create unjustified barriers to trade. In addition, Chapter 21 develops the objectives of regulatory cooperation.