A decade old debate exists between trade policies and environmental issues. Some studies have argued that liberalization may significantly shift the production pattern to pollution-intensive process, whilst the other studies have suggested that the cost of pollution resulting from trade liberalization is much less than the benefit. Apart from the impact of trade liberalization on environment, developing and least developed countries were also concerned about the market access of their products in developing countries due to various environmental measures. Brazil and Venezuela’s objection on 1990 US clean air act; India, Pakistan, Thailand and Malaysia’s complaint on the US ban on some shrimp and shrimp products and the French government ban on substance using asbestos are some of the examples of that incidence. In this background, developing and least developed countries should design environmental policies in a way so that the adverse impact on trade could be kept at a minimum level. The SANEM will try to formulate the appropriate environmental policies for South Asian region through the proper use of suitable modeling techniques.