Latin American Studies | Legal News and Developments in Key Latin American Regions, January–early February 2026 (Bilingual: Chinese–English)

Practical Impacts ・Compliance Arrangements: Enterprises operating or investing in Mexico should anticipate new obligations—once secondary regulations are issued—regarding disclosure, product design, and waste management. ・Impact on Supply Chains: Manufacturing, packaging, and import-intensive industries may need to adjust contractual structures, logistics arrangements, and product designs to meet circular economy requirements. ・Investment Opportunities: This legal framework creates medium-term investment opportunities in recycling, remanufacturing, circular logistics, and environmental services, aligning with global ESG (Environmental, Social, and Governance) standards. New General Law on Circular Economy and Environmental Reforms (Published in the Official Gazette: January 19, 2026) On January 19, 2026, Mexico enacted the General Law on Circular Economy (LGEC), together with amendments to the General Law of Ecological Balance and Environmental Protection (LGEEPA) and the General Law for the Prevention and Comprehensive Management of Waste (LGPGIR). This new framework establishes Mexico’s first comprehensive national regime promoting circular production and consumption models, replacing traditional linear approaches. The law integrates sustainability, resource efficiency, waste valorization and extended producer responsibility (EPR) into Mexico’s environmental and economic policy, with direct relevance for manufacturing, import, logistics and industrial projects.

Europe and the U.S. Lead the Way! The Circular Economy Accelerates from End-of-Pipe Recycling Toward Industrial Competitiveness

Europe On January 27, 2026, the European Parliamentary Research Service (EPRS) released a concise policy briefing titled ‘The Circular Economy Act’, focusing on the EU’s planned legislative process for this Act in 2026. The report clearly signals that the EU is elevating the circular economy beyond its traditional role as an environmental issue—and positioning it instead as a strategic priority for securing critical raw materials and enhancing industrial competitiveness. It systematically outlines key topics, central tensions, and potential policy instruments related to the Act. Currently, the EU faces two core challenges in advancing its circular economy agenda: First, the circulation of secondary raw materials remains a critical bottleneck. Divergent national standards—especially regarding the determination of when waste ‘ceases to be waste’—create legal uncertainty and impede cross-border trade, hindering the formation of a unified internal market for secondary raw materials. Second, resource security pressures are intensifying: while the EU remains highly dependent on external supplies for certain strategically important raw materials, their recycling rates and high-value circular utilization remain low. Moreover, price and quality gaps between recycled and virgin materials undermine the commercial viability of recycling. In response to these challenges, the report identifies core directions for policy optimization and legislative advancement. On incentive mechanisms, it highlights the ‘recalibration’ of Extended Producer Responsibility (EPR) schemes and the use of price signals to correct market failures—while cautioning that efforts to boost recycling efficiency must be balanced with safeguards against environmental and health risks. Regarding legislative levers, the EU plans to revise foundational directives—including the Waste Framework Directive and the Waste Electrical and Electronic Equipment (WEEE) Directive—to foster policy coherence and establish an integrated policy package covering the entire value chain: design, production, consumption, collection, and recycling—thereby strengthening systematic implementation. The report also reveals defining features and key observation points of the EU’s new phase of circular economy governance—marking a transition toward ‘framework-level coordination’. The institutional strength and real-world effectiveness of the forthcoming Circular Economy Act will hinge on two fundamental choices: first, whether governance priorities focus on harmonizing rules for secondary raw material circulation, or on reforming EPR systems and pricing mechanisms to stimulate demand for recycled materials; and second, whether policy orientation emphasizes improving recycling efficiency alone—or introduces binding targets based on resource footprints and consumption intensity. These contested issues represent pivotal decision points in the Act’s legislative process. North America—Mexico On November 20, 2025, the draft General Law on Circular Economy (LGEC) was submitted to Mexico’s Chamber of Deputies; it passed overwhelmingly on December 19 (460 votes in favor, supported by all parliamentary caucuses) and subsequently received final approval from the Senate. The law entered into force in January 2026. The LGEC’s core objective is to embed circular economy principles—including prevention and traceability—into production and consumption systems, driving Mexico’s transition away from linear economic models. Its nationwide unified framework aims to reduce resource extraction, extend product lifecycles, and minimize waste generation to the greatest extent possible. It establishes five overarching principles applicable across all sectors and formally recognizes the circular economy as a matter of public interest, coordinating responsibilities among federal, state, and municipal governments to prevent regulatory fragmentation. To ensure effective implementation, the LGEC establishes three pillars: monitoring, enforcement, and transparency. These include a National Circular Economy System led by the Ministry of Environment and Natural Resources; a National Public Information Platform for compiling relevant data; and a Circular Management Registry, requiring producers and importers to register their circular management plans.

Mexico circular economy law without regulations ‘like having a vehicle but no keys’ – recycling cluster

1 day ago

Mexico’s Plastics and Circular Economy Cluster warns the federal circular economy law lacks necessary regulations for real progress. Without clear operational frameworks, recycling efforts remain ineffective despite legislative speed.

icis

2026-11-11

Mexico circular economy law without regulations ‘like having a vehicle but no keys’ – recycling cluster

Mexico circular economy law without regulations ‘like having a vehicle but no keys’ – recycling cluster

FAQ