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Many companies have found substantial savings by manufacturing in Mexican maquiladoras. From the low-cost, high-skill labor pool to the plethora of international free trade agreements to the modernized infrastructure and connectivity, Mexico is a destination of choice for outsourcing. However, it’s essential to understand the relevant environmental laws and regulations in Mexico to avoid potential compliance issues.
Since the inclusion of environmental protections in the federal constitution in 1999, Mexico has been a staunch protector of the nation’s significant ecological assets. Several additional amendments, treaties, and regulations have gone into effect, as the country seeks to solidify and codify a functional relationship between industry and environmental protection.
Below, we’ll cover some of the key environmental regulations that companies should be familiar with when manufacturing in Mexico. In order to avoid expensive fees, fines, or sanctions, foreign entities that might be somewhat unfamiliar with the pertinent regulations should perform their due diligence to understand Mexican environmental law. The information detailed below will help improve compliance and understanding and ensure a profitable future in this environmentally conscious country.
Mexican Environmental Law
Mexico has a comprehensive legal framework for environmental protection, including federal and state-level laws and regulations. Since enshrining environmental protection in the country’s constitution, Mexico has legislated additional protections over specific areas of the environment. Some of the most important federal regulations for manufacturers to know include:
These laws govern primarily three areas of potential pollution:
It’s important to note that there may be additional state-level regulations that companies need to comply with, depending on where they plan to manufacture in Mexico. These regulations can vary widely, so it’s crucial to research the specific requirements in the area where your company plans to operate.
Compliance with Mexican environmental law is critical for manufacturers operating in Mexico. Failure to comply with these regulations can result in fines, legal penalties, and reputational damage. Here are some of the key compliance issues that companies should be aware of:
Trends and Developments
Like many countries, Mexico’s environmental regulations are constantly evolving. Here are some of the key trends and developments to keep an eye on:
Going forward, companies that plan to manufacture in Mexico must be familiar with the relevant environmental laws and regulations to avoid compliance issues. Compliance with these regulations is critical, especially for foreign-owned companies who want to be good corporate citizens in this country.
By staying informed about trends and developments in Mexican environmental law and regulations, manufacturers can stay ahead of the curve and reduce their environmental footprint. This will ensure that Mexico’s natural resources are here for future generations while fostering a healthy environment for businesses and people alike.