SHAPING LAWS THAT AFFECT PRODUCTS IN LATIN AMERICA : CASE STUDY - MEXICO

1. SHAPING LAWS THAT AFFECT PRODUCTS IN LATIN AMERICA: CASE STUDY - MEXICO Fort Lauderdale, FloridaDecember 5th, 2010 By: Mauricio E. Llamas C., Esq. mllamas@environlaw.com.mx

2. CONTENTS • Introduction • Regulation Creation & Standardization Processes • Federal Legislative Process • Implementing Regulations’ Creation Process • Federal Commission of Regulatory Improvement (COFEMER) • Mexican Official Standards (NOM’s) • Case Study: Waste Regulation Advocacy in Mexico • Conclusions

3. I. INTRODUCTION • Environmental Law Development & Current Status • 1971-1988 (First Stage - Null Application) • 1988-1996 (Second Stage - Setting the Field, Institutional Development) • 1996-2005 (Third Stage – Enforcement, Specific Sectors’ Regulation, • 2005 (Fourth Stage – Law Adjustments, Specific Standardization & Reqs Development) • Productive Sector Reqs & Effects • Viable and Appropriate Provisions? • Specific Reqs for Products • Enforcement Actions • Need to Anticipate, Participate & Influence

4. II. Regulation Creation &Standardization Processes • Federal Legislative Process • Creation Process • Public Participation Mechanisms • Contacting the Legislator • Contacting the proposing executive power branch • Through Chambers, Forums and working with the corresponding law-making Commission • Implementing Regulations Creation Process • Executive Power’s Regulatory Faculties • Regulation Creation Mechanisms • Through the corresponding Ministry • Third private parties hired to develop specific regulations

5. II. Regulation Creation &Standardization Processes (cont.) • Federal Commission of Regulatory Improvement (COFEMER) • Objective & General Aspects • Legal Basis: Federal Law of Administrative Proceeding • The Regulatory Impact Manifest and Evaluation • Private Sector Participation Opportunities • Mexican Official Standards (NOMs) • Concept • Objective • Creation Process

6. III. Case Study: WasteRegulationAdvocacy In Mexico • Identifying the Conflict - The General Waste Law of 2004. • New Waste Classification • Hazardous Waste (Federal Jurisdiction) • Special Management Waste (State’s Jurisdiction) • Solid Urban Waste (Municipal Jurisdiction) • Valorization • Shared Responsibility Principle • Management Plans

7. III. Case Study: WasteRegulationAdvocacy In Mexico (cont.) • Potential Impacts for the Productive Sector • Extended Responsibility • Jurisdiction Indeterminacy • Compliance, Costs, Administrative & Application Issues • Actions • Shaping the Regulations • Identification of appropriate channels • Raising the conflict to the industrial chamber • Creation of a productive sector’s environmental commission • Development of specific proposals • Interaction with responsible officers, assure desired and justified contents

8. III. Case Study: WasteRegulationAdvocacy In Mexico (cont.) • Mexican Official Standards • Seek the appropriate channel to participate in the NSAC or procure the incorporation to the corresponding Chamber • Incorporation to the NSAC Work Groups • Analyze appropriate international or industry accepted criteria and policies • Make specific proposals and follow up the process • General Waste Law Amendment • Approach with legislators involved in the matter • Transmit concerns and needs • Work in a feasible proposals • Seek the industry’s support • Provide supporting information and criteria

9. VII. CONCLUSIONS • Environmentallegislation in Mexico has reachedan important development, butis still in conforming process for specific products regulation. • As it develops, it reaches more and more sectors and products. • The opportunity to participate in the development and creation of legislation, regulations and standards does exist in Mexico. • Monitoring of initiatives and amendment proposals is essential • Enact vs. React • Scope WHO issues the Laws and Regulations • Review Push and Pull Sources • It is necessary to establish responsible parties and internal participation mechanisms and processes in order to influence and shape the law. • Ensuring that participation in legislation development enables efficiency, compliance viability and may avoid unnecessary reqs and costs.

10. SHAPING LAWS THAT AFFECT PRODUCTS IN LATIN AMERICA: CASE STUDY - MEXICO Fort Lauderdale, FloridaDecember 5th, 2010 By: Mauricio E. Llamas C., Esq. mllamas@environlaw.com.mx

11. LINKS OF THE PRESENTATION

12. FEDERAL LEGISLATIVE PROCESSCREATION OF LAWS Law Initiative Filing By: 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 • 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” Remitting to the Revising House’s corresponding Commission Enactment / Promulgation (VacatioLegis period is previously established on the Draft) • Local Congresses Review and approval of the Minute by the Revising House’s Plenary Draft’s review by the Executive Power Approval Approved Not Approved Veto Faculty

13. MEXICAN OFFICIAL STANDARDS (NOM’s).CREATION PROCESS Approval of draft NOM by the National Standardization Advisory Committee (NSAC) Sub-Committees WG WG WG Publication of STANDARD Publication of draft STANDARD for comments Publication of comments and modifications NSAC reviews comments and modifies draft as applicable 60 day period to submit comments