Substances of Concern in Mexico’s Circular Economy Law

Mexico’s new Circular Economy Law goes well beyond waste and recycling. It also signals a policy shift toward addressing substances of environmental concern, including what the law refers to as “toxic and contaminating substances.”

The law approaches this issue in several ways:

✔️ First, the future National Circular Economy Program—which will identify covered products and sectors—should promote productive processes that reduce the use of toxic substances.

✔️Second, the Program is expected to foster Circular Design by minimizing the use of toxic and contaminating substances at the production stage.

✔️Finally, the government is tasked with establishing targets for substituting toxic substances with non-toxic alternatives.

The law itself does not immediately ban or list substances, but it clearly mandates future policies, EPR implementation agreements, and targets that aim to:

➡️ Reduce the use of substances of concern

➡️Promote substitution with safer alternatives

➡️Embed these expectations into product design and lifecycle management Any concrete restrictions will therefore come later—through the National Circular Economy Program, EPR Implementation Agreements, and future NOMs (mandatory technical standards).

⚠️ The Disconnect: “Toxics” vs. Hazardous Substances

The law’s use of the term “toxic and contaminating substances” reflects a broader and longstanding challenge in Mexico’s environmental framework: the absence of a modern, comprehensive approach to hazardous chemical substances. These terms are imprecise and limiting, and their use perpetuates gaps already present in existing environmental legislation. By contrast, several Latin American countries—including Chile, Colombia, Brazil, and Peru—have moved toward modern chemical management regimes (often referred to as “LatAm REACH”) all of which recognize the Globally Harmonized System of Classification and Labelling of Chemicals (GHS) as a foundational element. The Circular Economy Law could have adopted a more contemporary approach by referencing hazardous substances and aligning explicitly with the GHS. While the United States still uses the term “toxic” in its chemical framework, that statute -the Toxic Substances Control Act (TSCA) – dates back to 1976, long before the development of the UN GHS.

The terminology choice points to a lack of regulatory coordination. Today, Mexico’s workplace safety, transport regulations, and even a recent draft product standard for paints and coatings are already GHS-based. In this context, the Circular Economy Law feels like a throwback to earlier environmental laws such as the LGEEPA.

🚀 Next Steps

Future instruments adopted under the Circular Economy Law – including the Regulation, National Program, EPR agreements, and NOMs – will ultimately determine how substances of concern are addressed in practice.

Chile: Proposed Cosmetovigilance Rules

Cosmetovigilance is a trend in Latin America.  Brazil – who already had strict rules on the subject – rolled out major reforms that went into effect in 2025.  Now, Chile’s Ministry of Health is joining the fray with a  public consultation on a new National Technical Standard for the National Cosmetovigilance Program (PNC), aimed at strengthening post-market safety oversight of cosmetic products.

The proposed standard would formalize a structured system for detecting, reporting, evaluating, managing and preventing adverse or undesirable events associated with cosmetic use, complementing existing regulatory frameworks. It defines clear roles and responsibilities for the Institute of Public Health (ISP), product holders, health professionals, users and designated cosmetovigilance officers, and establishes principles of consumer safety, transparency, traceability and confidentiality. The standard seeks to promote broad stakeholder participation, align Chile with international cosmetovigilance practices, and generate evidence to better protect public health while maintaining market integrity.

The public consultation period runs for 60 days from January 26, 2026.

Link to Draft:

https://www.minsal.cl/wp-content/uploads/2026/01/CONSULTA-PUBLICA-NT-COSMETOVIGILANCIA.pdf

Argentina Eases Market Access for Cosmetics, Personal Care, & Household Cleaners

As part of its plans to slash red tape and liberalize business, last fall Argentina’s National Administration of Medicines, Food, and Medical Technology (ANMAT) issued Disposition 7929/2025.  The measure simplified the authorization procedures for manufacturing or import of cosmetics, personal care, and cleaning products – cutting down on approval times and moving from prior approval to post-import approvals without an expiration date.

The new procedures apply to authorizations for manufacturing, packaging, fractionating, and/or conditioning, and import of:

·        cosmetic products,

·        personal care products,

·        perfumes,

·        oral hygiene products for dental use,

·        disposable hygiene products for external use,

·        hygiene products for intravaginal use, and

·        household cleaning products.

Now, companies will be authorized to carry out their activity by submitting an affidavit stating that they comply with the requirements established in the current regulations, as well as a commitment to maintain compliance, especially regarding Good Manufacturing and Control Practices.

Annex I sets out the form for the affidavit for approval of the facilities for cosmetics products, personal care and perfumes, oral hygiene for dental use, disposal hygiene products or external use, or intravaginal products, and household cleaning products. Annex II sets out the GMP for disposal hygiene products for external use and intravaginal hygiene products.

For now, this new procedure applies exclusively to companies that are starting activities for the first time, processing a change of Technical Director and/or Co-Technical Director, changing their corporate name, or transferring ownership.

Companies that are already authorized and wish to register under Article 9 of Disposition 7939/2025 are going to have to wait until the digital platform is operational.

The new rules went into effect on January 29, 2026.

Companies active in Latin America should take note of these liberalizations.  These new pathways may influence where a foreign company decides to enter the Latin American market.

Brazil: New Plastic Packaging Rules

As reported, Brazil last year issued a broad new plastic packaging mandate calling for EPR and minimum recycled content in Decree 12.688/2015.  Now, the government is issuing two draft standards that flesh out the plastic rules.

First, one draft sets out the technical and operational requirements for managing waste (rejects) generated during the sorting of plastic packaging.  The rules apply to primary, secondary, and tertiary plastic packaging, as well as equivalent plastic products placed on the Brazilian market for final consumption. In this context, “rejects” refer to materials that, after collection and sorting, are not technically or economically viable for recycling or reuse.  The new rule would help clarify responsibilities and improve transparency across the plastics value chain.

Public comment period runs till February 11.

Link to Draft:

https://brasilparticipativo.presidencia.gov.br/processes/rejeito

Second, another draft introduces Brazil’s Plastic Packaging Recyclability Index (IREP). The proposal requires manufacturers of plastic packaging and packaged products to integrate circular economy principles—such as recyclability and durability—into product design and production. Importantly, recyclability is defined not as a theoretical potential, but as the effective technical and economic ability of a product or packaging to be recycled into secondary raw material capable of replacing virgin material.

Link to Draft:

https://brasilparticipativo.presidencia.gov.br/processes/reciclabilidade

Brazil:  Eco-Label Gets Sustainability Guidelines

In 2024, Brazil created a new Selo Verde Brasil (Green Seal Brazil) via Decree 12.063/2024.  The voluntary program is meant to certify sustainable products/services, with technical criteria defined by the Brazilian Association of Technical Standards (ABNT).  Now, two years later, ABNT just released a new technical standard that establishes general sustainability guidelines and a technical foundation for the Selo Verde Brasil Program.

The new ABNT standard provides a framework for certifying Brazilian products and services based on environmental, social, and economic sustainability criteria. These guidelines will serve as the basis for future product- and service-specific standards under the Selo Verde Brasil Program. Once developed, the program will also offer capacity-building for production chains and lead to certification by bodies accredited by INMETRO.

In the coming months, ABNT technical committees are expected to develop the first sector-specific standards, starting with laminated aluminum sheets and ethylene polymers from renewable sources, marking the initial rollout of the program.

While the standard – and the seal itself – are all voluntary, it is not inconceivable that it could become a market access issue.  We often see voluntary certifications or requirements brought into the public procurement process for sales to the government.  We saw this when Brazil began to incorporate the EU RoHS requirements for electronics into public tenders well over a decade ago – and the country is still pending formal adoption of its own RoHS binding standard.

Chile: Flexibility for Registration and Use of Pesticides on “Minor Crops”

Chile’s Ministry of Agriculture, through the Agricultural and Livestock Service (SAG) introduced a significant update to the regulatory framework governing the authorization of pesticide use in minor crops in Resolution 641/2026.

This resolution amends and repeals some existing rules to align Chilean regulation with OECD recommendations and addressing long-standing gaps in phytosanitary tools for small-scale and specialized agricultural sectors.  Now, minor crops (local horticultural products, ornamentals, nursery plants, and other small-scale productions) will have better access to registered pesticides. The change seeks to provide proportionate, risk-based regulatory solutions while maintaining safeguards for human health and the environment.

Key Changes

New definitions

• Minor crop: Crops with a national cultivated area of 10,000 hectares or less.
• Minor use of pesticides: Situations where the pest–crop combination has no registered pesticides or no more than six registered products nationwide.

Updated application process The resolution introduces a clearer and more flexible procedure for requesting new uses of already authorized pesticides, with requirements tailored to the intended destination of the crop (consumption vs. non-consumption).

Differentiated authorization pathways

• Provisional authorization (minimum 5 years) for synthetic pesticides used in crops destined for human or animal consumption, with a defined pathway toward full registration.
• Definitive authorization for: Biopesticides proven to be residue-free in crops for consumption. Pesticides used in crops not intended for human or animal consumption (e.g., ornamentals, nursery plants, seed production).

Broader technical evidence acceptance Depending on the crop category, efficacy can be supported by:

• Foreign registrations and approved labels,
• National efficacy trials,
• Scientifically recognized international literature.

Labeling and crop grouping flexibility Non-food crops and associated pests may be grouped on product labels, based on technical and regulatory criteria established by SAG.

Pathway for unregistered products The regulation allows for the authorization of previously unregistered pesticides specifically for minor crops, granting provisional approval and a structured route toward definitive registration.

OECD Influence

Here again, Chile is referencing the OECD best practices for its new regulations.  The country openly has acknowledged that access to the OECD was the primary driver for its 2021 adoption of the GHS and its national REACH-inspired scheme.

The resolution entered into force upon its publication in the Official Gazette on February 6, 2026.

Link to Resolution:

https://www.diariooficial.interior.gob.cl/publicaciones/2026/02/06/44369/01/2761803.pdfcodigo=5350651&fecha=01/07/2014#gsc.tab=01/16/44350/01/2749490.pdf

LatAm “REACH” is now in reach

Check out AMBIENTELEGAL ACADEMY — designed for professionals who need clarity, not theory.

📌 New self-paced video courses, with downloadable reference materials you can keep:

• Crash Course on Colombia “REACH”
• Crash Course on Chile “REACH”

📌 Essential regulatory documents — translated into English so you save time and avoid misinterpretation:

• Brazil “REACH” Law
• Colombia “REACH” Registration Instruction Guides
• Chile “REACH” Registration Instruction Guides

👉 Access the courses and downloads here: https://lnkd.in/g3RiBRG3

© 2026. All rights reserved. This publication is protected by copyright and monitored by AI-powered content tracking systems. Unauthorized use, reproduction, or distribution is strictly prohibited.