Abstract: Along with the hot issue of “low-carbon economy” and “green economy”, the discussion of trade and environmental protection issues aroused the concern in the international scope. As the government's social intervention, the impact of environmental regulation on industrial economy and trade is an important and worthy discussion issue. In this paper, we will take textile and garment industry as an example to explore the impact of domestic environmental regulation on their trade. Build the strength index system of environmental regulation, on the theoretical basis of the role mechanism analysis on environmental regulation and trade, we use the econometric models to investigate the impact of environmental regulation on textile and garment export trade. Studies suggest that impact of environmental regulation on textile and garment export trade is the negative effect currently. In view of this situation, policy makers and policy executor need to work together to forward to the positive role of the environmental regulation.

Key words: textile and garment, environmental regulation, export trade, factor analysis