Agri-environmental policy measures aim to balance agricultural production with environmental concerns. These policies include regulations, training programs, and payments to farmers for environmental services. As global agricultural markets open up, debates arise on how these policies affect production costs, farm competitiveness, and international trade. The impact of different environmental regulations on farming and trade varies among countries. Harmonizing these policies internationally could potentially increase overall welfare. The study explores the effects of agri-environmental policies on agricultural trade, farming costs, and competitiveness, and considers the benefits of global policy alignment.