Trade liberalization with consideration to the relative advantages of countries will increase welfare in the world. One of the usual policies which are done for accepting trade liberalization among countries is decreasing or omitting tariffs. Moreover, saving the quality of the environment is the most desirable condition and of the most important goal of sustainable development and liberalization. Therefore this study investigates trade liberalization of rice imports affects on using chemical fertilizers which are one of the most important run-off and groundwater pollutants. Data which were announced by the agricultural ministry of Iran for 1989-2002 was used. Equations were estimated with Seemingly Unrelated Regressions (SUR). Results demonstrate that rice trade liberalization will decrease chemical fertilizers in each hectare and therefore the pollution from run-off on ground water will also decrease

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