This paper shows that stiff environmental requirements, high tariffs and tariff escalation in importing countries create market access problems for developing countries whose comparative advantage lies in exports of resource-intensive and labour-intensive products. But structural reforms, technological upgradation and proactive responses by industry and government can provide an enabling environment to meet the challenges of trade liberalisation and environmental protection. The paper compares and contrasts the responses of the leather industry to these challenges, by stage or production, in Brazil, China and India.