Environmental regulation is a relatively new and significant area of concern for businesses with operations in Mexico .

      The Ministry for Urban Development and Ecology was created in 1982 to regulate urban development, housing, use of land and ecology. It was abolished in 1992 in favor of the Ministry of Social Development.

      In late 1994, the Organic Law for the Federal Public Administration was amended to create a new Ministry of Environment, which includes the National Institute of Ecology and the Environmental Protection Agency. While the institute is basically in charge of formulating regulations and legislation, the agency is in charge of enforcement.

      In 1988, Mexico enacted the Environmental Law with the purpose of defining the environmental policy and regulation; preserving and restoring the environment; establishing environmental protection areas for flora and aquatic and wild fauna; promoting rational use of natural resources; preventing and controlling water, soil and air pollution and regulating the competence of the federal, state and municipal authorities regarding the environment.

      The law is divided into six areas which address the following: general dispositions, protected natural areas, rational use of natural elements, protection of the environment, social participation and safety and control measures and sanctions. The law defines the roles of federal and local authorities, granting federal authorities...

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