MEXICO Trends and Developments Contributed by: Fernando Todd, Jorge Garcia, Silvia Alanis and Ana Lilia Solano, Todd
recent reforms to the Mining Law, the National Waters Law, and environmental legislation, as well as changes to the judiciary. Together, these developments create a regulatory and political transformation requiring strategic attention due to their potential impact on Mexico’s economy and international relations. The initial decisions of the new administration, particularly regarding the mining sector, will reveal the direction of its economic policy and its commitment to sustainable development. While the incoming government has expressed a focus on protecting natural resources and strengthen - ing environmental regulation, it must also bal - ance these goals with fostering domestic and foreign investment, which are essential for the sector’s competitiveness. National Water Plan On 21 November 2024, President Claudia Shein - baum presented the National Water Plan 2024- 2030, which is based on four fundamental pillars: • water policy and national sovereignty; • justice and access to water; • mitigation of environmental impact and cli - mate change adaptation; and • comprehensive and transparent management. These actions define the current administration’s stance on strengthening the conservation and sustainable use of water resources, particularly in high-demand sectors such as mining. These changes reinforce the vision of protecting and reusing water by requiring mining compa - nies to accurately report the volumes used, as well as any surplus not essential to their opera - tions, so that it can be returned to the nation or reassigned to other priority uses, such as public supply or agricultural activities.
From a legal perspective, this regulation is based on the National Waters Law, which enshrines water as a strategic national resource and estab - lishes its management under principles of sus - tainability and social justice. The obligation to report surpluses introduces greater transparency in water management, aligning with international principles of water governance. However, it also imposes a significant administrative burden on mining companies, which must implement advanced monitoring and reporting systems to ensure compliance with these provisions. While these measures aim to ensure a fairer and more efficient distribution of water, they present operational challenges for the mining sector. Companies must redesign their internal processes to identify surpluses, implement tech - nologies to improve consumption efficiency and develop strategies to reintegrate surplus water under conditions that allow its reuse or reassign - ment to other sectors. United States-Mexico-Canada Agreement Furthermore, the upcoming renegotiation of the United States-Mexico-Canada Agreement adds an international dimension to this chal - lenge. The mining sector, as a key supplier of strategic inputs for North American value chains, will be a focal point for negotiators. The recent legal reforms and their perceived impact on legal certainty and Mexico’s competitiveness could influence the stances of the United States and Canada, particularly on issues related to compli - ance with environmental and labour standards. As a key supplier of strategic minerals used in various industries, from manufacturing to tech - nology and clean energy, Mexico plays a central role in North America’s value chains. Both Canada and the United States are the main investors in Mexico’s mining sector, meaning any
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