Mexico's chemical industry turns environmental challenges into competitive advantage amid T-MEC review

Mexico's chemical industry is embracing stricter environmental and circular economy regulations, viewing them not as a burden but as a catalyst for modernization and enhanced competitiveness. As the sector gears up for the review of the T-MEC trade agreement, companies are adapting to a transformed regulatory landscape.

The recent implementation of Mexico's General Law on Circular Economy, effective since January, mandates a shift towards prolonging product lifecycles, minimizing waste, and maximizing the recovery and recycling of materials. This framework, coupled with updated norms like the Official Mexican Standard 160 on hazardous waste, introduces extended producer responsibility. Manufacturers and importers are now accountable for their products throughout their entire lifecycle, with key indicators including carbon footprint and water efficiency.

Industry leaders acknowledge the significant shift. Leonardo Urich, director of strategic accounts in Latin America for waste management firm Veolia, noted that the "game has changed" and companies must now grow while drastically reducing their environmental impact. This transformation is particularly vital for an industry that contributed 1.6% to Mexico's GDP in 2025, with production valued at $20.576 billion that year, according to the National Association of the Chemical Industry (ANIQ).

Cynthia Ríos, director of Corporate Communications at Henkel Mexico, emphasized the need for greater commitment within supply chains, stating the new framework "helps us all take responsibility." Veolia's Julio Guerra proposed shared risks between the public and private sectors to foster investment opportunities arising from these new demands. However, the industry also calls for clearer regulations and legal certainty to accompany the increased environmental demands. Rubén Muñoz of ANIQ stressed that simplified administrative processes are crucial to prevent Mexican companies from losing ground in international markets and urged for clarity on water concessions and incentives for investment.