SHAPING LAWS THAT AFFECT PRODUCTS SHAPING LAWS THAT AFFECT PRODUCTS IN LATIN AMERICAIN LATIN AMERICA: :

CASE STUDY - MEXICOCASE STUDY - MEXICO

Fort Lauderdale, FloridaFort Lauderdale, FloridaDecember 5December 5thth, 2010, 2010

By:By:

Mauricio E. Llamas C., Esq.Mauricio E. Llamas C., Esq.mllamas@environlaw.com.mxmllamas@environlaw.com.mx

CONTENTSCONTENTS

I.I. IntroductionIntroduction

II.II. Regulation Creation & Standardization ProcessesRegulation Creation & Standardization Processes

A.A. Federal Legislative ProcessFederal Legislative Process

B.B. Implementing Regulations’ Creation ProcessImplementing Regulations’ Creation Process

C.C. Federal Commission of Regulatory Improvement (COFEMER)Federal Commission of Regulatory Improvement (COFEMER)

D.D. Mexican Official Standards (NOM’s)Mexican Official Standards (NOM’s)

III.III. Case Study: Waste Regulation Advocacy in MexicoCase Study: Waste Regulation Advocacy in Mexico

IV.IV. ConclusionsConclusions

I. INTRODUCTIONI. INTRODUCTION

A.A. Environmental Law Development & Current StatusEnvironmental Law Development & Current Status

• 1971-1988 (First Stage - Null Application)1971-1988 (First Stage - Null Application)

• 1988-1996 (Second Stage - Setting the Field, Institutional Development)1988-1996 (Second Stage - Setting the Field, Institutional Development)

• 1996-20051996-2005 (Third Stage – Enforcement, Specific Sectors’ Regulation,(Third Stage – Enforcement, Specific Sectors’ Regulation,

• 2005 (Fourth Stage – Law Adjustments, Specific Standardization & Reqs 2005 (Fourth Stage – Law Adjustments, Specific Standardization & Reqs Development)Development)

B.B. Productive Sector Reqs & EffectsProductive Sector Reqs & Effects

• Viable and Appropriate Provisions?Viable and Appropriate Provisions?

• Specific Reqs for ProductsSpecific Reqs for Products

• Enforcement ActionsEnforcement Actions

C.C. Need to Anticipate, Participate & InfluenceNeed to Anticipate, Participate & Influence

II. II. REGULATION CREATION &REGULATION CREATION &STANDARDIZATION PROCESSESSTANDARDIZATION PROCESSES

A.A. Federal Legislative ProcessFederal Legislative Process

1.1. Creation ProcessCreation Process

2.2. Public Participation MechanismsPublic Participation Mechanismsa.a. Contacting the LegislatorContacting the Legislator

b.b. Contacting the proposing executive power branchContacting the proposing executive power branch

c.c. Through Chambers, Forums and working with the corresponding law-Through Chambers, Forums and working with the corresponding law-making Commissionmaking Commission

B.B. Implementing Regulations Creation ProcessImplementing Regulations Creation Process

1.1. Executive Power’s Regulatory FacultiesExecutive Power’s Regulatory Faculties

2.2. Regulation Creation MechanismsRegulation Creation Mechanismsa.a. Through the corresponding MinistryThrough the corresponding Ministry

b.b. Third private parties hired to develop specific regulationsThird private parties hired to develop specific regulations

C.C. Federal Commission of Regulatory Improvement Federal Commission of Regulatory Improvement (COFEMER)(COFEMER)

1.1. Objective & General AspectsObjective & General Aspects

2.2. Legal Basis: Federal Law of Administrative ProceedingLegal Basis: Federal Law of Administrative Proceeding

3.3. The Regulatory Impact Manifest and EvaluationThe Regulatory Impact Manifest and Evaluation

4.4. Private Sector Participation OpportunitiesPrivate Sector Participation Opportunities

D.D. Mexican Official Standards (NOMs)Mexican Official Standards (NOMs)

1.1. Concept Concept

2.2. Objective Objective

3.3. Creation ProcessCreation Process

II. II. REGULATION CREATION &REGULATION CREATION &STANDARDIZATION PROCESSES STANDARDIZATION PROCESSES (CONT.)(CONT.)

A.A. Identifying the Conflict - The General Waste Law of Identifying the Conflict - The General Waste Law of 2004.2004.

1.1. New Waste ClassificationNew Waste Classification

a.a. Hazardous Waste (Federal Jurisdiction)Hazardous Waste (Federal Jurisdiction)

b.b. Special Management Waste (State’s Jurisdiction)Special Management Waste (State’s Jurisdiction)

c.c. Solid Urban Waste (Municipal Jurisdiction)Solid Urban Waste (Municipal Jurisdiction)

2.2. ValorizationValorization

3.3. Shared Responsibility Principle Shared Responsibility Principle

4.4. Management PlansManagement Plans

III. CASE STUDY: WASTE REGULATION III. CASE STUDY: WASTE REGULATION ADVOCACY IN MEXICOADVOCACY IN MEXICO

B.B. Potential Impacts for the Productive SectorPotential Impacts for the Productive Sector

1.1. Extended ResponsibilityExtended Responsibility

2.2. Jurisdiction IndeterminacyJurisdiction Indeterminacy

3.3. Compliance, Costs, Administrative & Application IssuesCompliance, Costs, Administrative & Application Issues

C.C. ActionsActions

1.1. Shaping the RegulationsShaping the Regulations

a.a. Identification of appropriate channelsIdentification of appropriate channels

b.b. Raising the conflict to the industrial chamberRaising the conflict to the industrial chamber

c.c. Creation of a productive sector’s environmental commissionCreation of a productive sector’s environmental commission

d.d. Development of specific proposalsDevelopment of specific proposals

e.e. Interaction with responsible officers, assure desired and Interaction with responsible officers, assure desired and justified contentsjustified contents

III. CASE STUDY: WASTE REGULATION III. CASE STUDY: WASTE REGULATION ADVOCACY IN MEXICO (CONT.)ADVOCACY IN MEXICO (CONT.)

III. CASE STUDY: WASTE REGULATION III. CASE STUDY: WASTE REGULATION ADVOCACY IN MEXICO (CONT.)ADVOCACY IN MEXICO (CONT.)

2.2. Mexican Official StandardsMexican Official Standards

a.a. Seek the appropriate channel to participate in the NSAC or Seek the appropriate channel to participate in the NSAC or procure the incorporation to the corresponding Chamberprocure the incorporation to the corresponding Chamber

b.b. Incorporation to the NSAC Work GroupsIncorporation to the NSAC Work Groupsc.c. Analyze appropriate international or industry accepted Analyze appropriate international or industry accepted

criteria and policiescriteria and policiesd.d. Make specific proposals and follow up the processMake specific proposals and follow up the process

3.3. General Waste Law AmendmentGeneral Waste Law Amendment

a.a. Approach with legislators involved in the matterApproach with legislators involved in the matterb.b. Transmit concerns and needsTransmit concerns and needsc.c. Work in a feasible proposals Work in a feasible proposals d.d. Seek the industry’s supportSeek the industry’s supporte.e. Provide supporting information and criteriaProvide supporting information and criteria

A.A. EnvironmentalEnvironmental legislationlegislation in Mexico has in Mexico has reachedreached an important developmentan important development, , butbut is still in conforming process for specific products regulation.is still in conforming process for specific products regulation.

B.B. As it develops, it reaches more and more sectors and products.As it develops, it reaches more and more sectors and products.

C.C. The opportunity to participate in the development and creation of legislation, The opportunity to participate in the development and creation of legislation, regulations and standards does exist in Mexico.regulations and standards does exist in Mexico.

D.D. MonitoringMonitoring of of initiatives and amendment proposals is essentialinitiatives and amendment proposals is essential1.1. Enact vs. ReactEnact vs. React

2.2. Scope WHO issues the Laws and RegulationsScope WHO issues the Laws and Regulations

3.3. Review Push and Pull SourcesReview Push and Pull Sources

E.E. It is necessary to establish responsible parties and internal participation It is necessary to establish responsible parties and internal participation mechanisms and processes in order to influence and shape the lawmechanisms and processes in order to influence and shape the law. .

F.F. Ensuring that participation in legislation development enables efficiency, Ensuring that participation in legislation development enables efficiency, compliance viability and may avoid unnecessary reqs and costs.compliance viability and may avoid unnecessary reqs and costs.

VII. CONCLUSIONSVII. CONCLUSIONS

SHAPING LAWS THAT AFFECT PRODUCTS SHAPING LAWS THAT AFFECT PRODUCTS IN LATIN AMERICAIN LATIN AMERICA: :

CASE STUDY - MEXICOCASE STUDY - MEXICO

Fort Lauderdale, FloridaFort Lauderdale, FloridaDecember 5December 5thth, 2010, 2010

By:By:

Mauricio E. Llamas C., Esq.Mauricio E. Llamas C., Esq.mllamas@environlaw.com.mxmllamas@environlaw.com.mx

LINKS OF THE PRESENTATIONLINKS OF THE PRESENTATION

Analysis and review by the corresponding Commission;

issuance of final report (Minute)

Analysis and review by the corresponding Commission;

issuance of final report (Minute)

Review and approval of the Minute by the House

of Origin’s Plenary

Review and approval of the Minute by the House

of Origin’s Plenary

•The President•The President

•House of Representatives

•House of Senators

The House that files the Law Initiative is known as the House of Origin, the remaining one is known as the Revising House”

•House of Representatives

•House of Senators

The House that files the Law Initiative is known as the House of Origin, the remaining one is known as the Revising House”

•Local Congresses•Local Congresses

Remitting to the Revising House’s corresponding

Commission

Remitting to the Revising House’s corresponding

Commission

Review and approval of the Minute by the

Revising House’s Plenary

Review and approval of the Minute by the

Revising House’s Plenary

Draft’s review by the Executive Power

Draft’s review by the Executive Power

Law Initiative Filing

By:

Law Initiative Filing

By:

Enactment /Promulgation

(Vacatio Legis period is previously established on

the Draft)

Enactment /Promulgation

(Vacatio Legis period is previously established on

the Draft)

FEDERAL LEGISLATIVE PROCESSFEDERAL LEGISLATIVE PROCESSCREATION OF LAWSCREATION OF LAWS

NotApproved

NotApprovedApprovedApproved

Veto Faculty

Veto Faculty

ApprovalApproval

MEXICAN OFFICIAL STANDARDS (NOM’s).CREATION PROCESS

Approval of draft NOM by the Approval of draft NOM by the National Standardization National Standardization

Advisory CommitteeAdvisory Committee(NSAC)(NSAC)

Publication of Publication of draft STANDARDdraft STANDARD

for commentsfor comments

NSAC reviews NSAC reviews comments and modifies comments and modifies

draft as applicabledraft as applicable

Publication of Publication of comments comments

and modifications and modifications

Publication ofPublication ofSTANDARDSTANDARD

60 day period to 60 day period to submit commentssubmit comments

WGWG WGWG WGWG

Sub-Committees Sub-Committees