U.S. Environmental Technologies Trade Mission to Latin America

By attending this conference and trade mission, U.S. companies will be able to:

• Gain market insights
• Make industry contacts
• Solidify business strategies
• Advance specific projects
• Identify potential partners

All business-to-business appointments in the region will be with a pre-screened potential buyer, agent, distributor or joint venture partner.

Applicants must submit a completed and signed application HERE  and supplemental application materials, including adequate information on their products and/or services, primary market objectives, and goals for participation no later than August 6, 2021.

Submitting an application is indication of your interest to participate in the mission.  No fees are due at the time of registering your intent to join the mission. Once you are invited to join the mission payment of mission fees and the signature of the participation agreement is then due in order to participate in the mission.

Thursday, Oct. 21 - Friday, Oct. 22 - Quito, Ecuador Optional Virtual Spin-Off for Waste Management and Recycling Companies, including:

• Country Briefing by the U.S. Embassy
• Business-to-Business and Business-to-Government Meetings

Monday, Oct. 25 - Friday, Oct. 29 - Mexico Environmental Technologies Virtual Summit for Waste Management and Recycling as well as Water/Wastewater Companies, including:

• Country Briefing by the U.S. Embassy
• Presentations by Solid Waste and Water Authorities in Mexico
• Networking between panelists and attendees of the Summit (via the My Business Matches virtual platform)

Tuesday, Oct. 26 - Friday, Oct. 29 - Mexico City Trade Mission Stop for Companies that select the “Full Program” option

• Virtual Business-to-Business and Business-to-Government Meetings (customized schedules will be provided to each participating company)

Wednesday, Oct. 27 - Lima, Peru Optional Spin-Off for All Companies, Including:

• Country Briefing by U.S. Embassy
• Participation at Virtual ExpoAgua y Sostenibilidad Trade Show
• Virtual Exhibit remains open through November 26
• Attendees have the opportunity to participate in-person at the hybrid ExpoAgua Show as part of the U.S. Pavilion (the U.S. is the host nation with U.S. companies receiving premier billing).  Please contact your local Trade Specialist or our colleagues in Peru for benefits, cost details, and additional information.

*Cost per company, no fees for additional participants from the same company

Below, please see the draft agenda for the Virtual Environmental Technologies Summit.  We continue to work on confirming speakers and will update this agenda as details are confirmed.  

Monday, October 25, 2021 - Virtual Venue (Cisco Webex - TBC)

10:30am Eastern - Opening Remarks

• U.S. Ambassador to Mexico (unconfirmed)
• Mr. Francisco Javier Solares, President, Mexican Chamber of Construction Industry (unconfirmed)
• Others TBD

11:15am Eastern - Panel 1: Opportunities in Mexico’s Water and Wastewater Industries

• Introduction by Francisco Ceron, Senior Commercial Specialist, U.S. Embassy in Mexico
• CONAGUA - Overview of Mexico’s water and wastewater industries and the 2020-2024 National Water Plan
• CMIC - Mexican private sector views and water opportunities
• Mexico City Government - Mexico City water infrastructure and project opportunities
• World Bank - Mexico City water priorities and financing
• Moderated discussion and Q&A session for participants

12:45pm Eastern - Panel 2: Opportunities for Solid Waste Management and Recycling Technologies

• Introduction by Claudia Salgado, Commercial Specialist, U.S. Embassy in Mexico
• Moderator: ABel Clemente, President, Asociacion Mexicana de Biomasa y Biogas A.C.
• SEMARNAT - Overview of solid waste management in Mexico at the federal level
• SEDEMA - Overview of solid waste management at the state level
• Private Sector Company CMIC on industrial hazardous waste management
• Private Sector Speaker on medical waste management
• Moderated discussion and Q&A on opportunities, needs, and upcoming projects

2:15pm Eastern - Break

2:30pm Eastern - Panel 3: Environmental and Water Opportunities at Mexico’s Borders

• Moderator: Braeden Young, Commercial Officer and Regional Standards Attache, U.S. Embassy in Mexico
• Mexican Government TBD - Water and solid waste priorities at Mexico’s northern border
• BANOBRAS - water projects and opportunities at Mexico’s northern border
• CCE - Water infrastructure and opportunities at Mexico’s Southern Border
• TBD - addressing water challenges in Southern Mexico

4:00pm Eastern - Guest Speaker 

• USG support of infrastructure projects in Mexico

4:15pm Eastern - Closing Remarks

4:30pm Eastern - Summit Concludes

Ecuador, an Andean country of over 17 million, offers promising market opportunities in the solid waste management and recycling sectors. Recent environmentally friendly government laws and policies are pushing increased investment in these sectors. More importantly, Ecuador’s tourism industry, which comprises nearly two percent of GDP, relies heavily on ecotourism and preserving the country’s cherished and vulnerable ecosystems. While the economy is expected to shrink by nine percent in 2020 due the pandemic-induced economic downturn, the economy is projected to grow by three percent in 2021, with tourism remaining an important driver of economic recovery. Ecuador has also made recent advances in its trade relationship with the United States, signing the Protocol on Trade Rules and Transparency in December 2020. Further deepening of economic ties, for which there exists significant political will, depends on Ecuador carrying out needed reforms to open its economy to investment and reduce trade barriers. A new administration will take office in May 2021, offering opportunities for U.S. companies to make important contacts in relevant ministries and learn of the new government’s solid waste and recycling priorities. 

Ecuador’s Solid Waste Management and Recycling Sectors 

Solid Waste Management Opportunities 

Solid waste management are burgeoning industries in Ecuador. In recent years, the Government of Ecuador has implemented new laws and policies to control increased solid waste and support more environmentally friendly practices. The current Minister of Environment and Water counts improved waste management practices among top Ministry of Environment and Water (MAAE) priorities.   

The Organic Environmental Code (COA) of 2018 assigns the role of National Environmental Authority (AAN) to the MAAE, which can exercise leadership, planning, regulation, control and integral management of solid waste. However, the provision of public solid waste management services is the exclusive domain of the autonomous decentralized municipal governments (GADs).  MAAE registers data through the National Program for the Integral Management of Solid Waste (PNGIDS), and reports that 53 percent of municipalities dispose of their waste in an adequate way (sanitary landfills or emerging cells), in compliance with environmental regulations. The Association of Ecuadorian Municipalities (AME) collects information from the 221 GADs through the National Municipal Information System (SNIM) with the objective of developing pro-environment actions, priorities, and commitments. According to the SNIM, 43 percent (96 municipalities) disposed of solid waste in sanitary landfills, 36 percent (79 municipalities) in open dumps, and 21 percent (46 municipalities) in pop-up cells. In Ecuador, there are 72 sanitary landfills - 45 of these have an environmental license, 16 are in the process of acquiring a license, and 11 do not have any license.   

Ecuador’s five major cities (Quito, Guayaquil, Cuenca, Manta and Ambato) produce a majority of the solid waste, which was an average of 0.58 Kg of solid waste per inhabitant per day in 2016 (0.73 Kg per inhabitant per day in the Galapagos Islands). According to the Quito Metropolitan Cleaning Company, Quito itself generates 2,200 tons of solid waste per day. A 2016 study by health researcher María Fernanda Soliz assessed 4.1 percent of municipalities dump their solid waste directly into rivers, posing challenges for the country’s vulnerable ecosystems.  

The MAAE, through Extended Producer Responsibility (EPR) regulations, has forced both producers and downstream retailers to focus on ecological and sustainable systems that require tire, cell phone, and agrochemical companies to take responsibility for their waste products and use MAAE-qualified companies to handle and dispose of their waste. Producers are now responsible for managing their products throughout the life cycle, which includes impacts of material selection, the production processes, and product use, as well as the treatment or final disposal of the product after its useful life ends. The Regulation to the Organic Code of the Environment (RCOA), effective 2019, indicates that MAAE will issue technical regulations outlining the type of waste included in EPR regulations. It also establishes that comprehensive waste management protocols will be governed by the principles of ensuring quality, eco-design, and manufacturing of products with characteristics that favor the use and minimization of waste, thereby contributing to the development of a circular economy. 

Galapagos Islands – Marine Debris and Solid Waste Management Opportunities 

Marine debris and solid waste management is a significant challenge that threatens the Ecuador’s Galapagos ecosystem, making headlines in 2020. In addition to natural currents that bring trash from South American countries, each year a large government-subsidized Chinese fishing fleet dumps its litter directly in the waters near the Galapagos’ exclusive economic zone. A three-fold population increase over the last three decades also has contributed greatly to Galapagos’ waste management problems. Solid waste is dumped and buried in an open-air municipal waste disposal facility with limited recycling capabilities.   

Recent Recycling Regulations Offer Opportunities 

In 2019, Ecuador signed the Circular Economy Pact, which will allow the promotion of productive initiatives based on recycling. The first National Assembly debate on the Organic Law Project on Circular Economy was on December 3, 2020. The bill now returns to the National Assembly’s Economic Development Commission for a second debate. The circular economy is based on four pillars: sustainable production, responsible consumption, integral waste management, and project financing.   

Considering the recent regulations, many potential opportunities for manufacturers of recycling equipment exist. While Ecuador has done well at recycling PET plastics, cardboard, and paper, additional business opportunities are concentrated in the following sectors: 

• Processing plants and machinery, including garbage trucks and garbage compactors;  
• Recycling of high- and low-density plastics, Tetra Pak containers, and glass; and  
• Leachate treatment technologies.  

The environmental technologies and water markets in Mexico are poised for growth over the next few years because of pressing environmental and water supply challenges, political will to fund projects in the sector, and a strong need for infrastructure modernization. Public and private-sector stakeholders are keen to address many of Mexico’s greatest challenges in these sectors with the latest products, technology, and expertise. 

Mexico’s Water Sector  

At the end 2019, Mexico’s total population was 127 million inhabitants, with 25 percent living in urban areas and 75 percent in rural areas. Of the total freshwater availability in Mexico, 77 percent is consumed by the agricultural sector, 14 percent is for human consumption, and 9 percent is consumed by the industrial sector. 

Mexico’s water industry is regulated by the National Water Commission (CONAGUA). CONAGUA is responsible for the administration of the country’s water resources, rivers, dams, lakes, and oceans. CONAGUA has 13 regional offices that implement and execute the National Water Plan in coordination with CONAGUA’s Mexico City office.  

According to CONAGUA, Mexico had 965 potable water treatment plants, 2,540 municipal wastewater treatment plants, and 2,832 industrial wastewater treatment plants at the end of 2019. According to members of the National Association of Water and Sanitation Companies (ANEAS), the potable water treatment plants are operating at 65 percent of their capacity,  the municipal wastewater treatment plants operate at 55 percent of their capacity, and the industrial wastewater treatment plants only operate at 40 percent of their capacity. 

According to ANEAS, CONAGUA lacks the economic resources to properly maintain the country’s water infrastructure and therefore has invited private contractors to participate in the modernization of existing infrastructure by bidding on public-private partnerships to upgrade the infrastructure and build new potable and municipal wastewater treatment plants. 

CONAGUA’s 2020-2024 National Water Program envisions the construction of 30 new municipal wastewater treatment plants and two desalination plants.  Other projects include the modernization of the Water Measurement National Network and Modernization of the National Weather Service.  

The Mexico City Water System (SACMEX) administers and operates 884 water wells; 268 pumping stations; 58 potable water treatment  plants; 26 municipal wastewater treatment plants; 375 water storage tanks; 732 kilometers of water pipelines and aqueducts; 1,274 kilometers of primary water pipelines; and  11,971 kilometers of secondary water pipelines.  SACMEX has indicated that during 2021, it will publish tenders for 16 potable water treatment plants. 

CONAGUA and local water authorities from several border cities, where more than 3,800 in-bond manufacturing plants operate, are considering upgrading existing municipal wastewater treatment plants and building over 40 new plants during 2021-2024. 

ANEAS and CONAGUA officials advise U.S. water equipment manufacturers and services suppliers to work with a local partner to facilitate the participation in Mexico’s water industry.  ANEAS estimates that Mexico has over 300 local water industry suppliers located in major cities of Mexico that are potential partners for U.S. companies. This Trade Mission will help participating U.S. water companies connect with those potential partners. 

Mexico’s Waste Management and Recycling Sectors 

The Secretariat of Environment and Natural Resources (SEMARNAT) is the federal entity in charge of the laws, standards, programs, and initiatives that shape the environmental sector in Mexico. One of SEMARNAT’s top priorities is to promote green development in Mexico—advancing economic growth and development by promoting a more competitive, sustainable, and low-carbon-emissions economy. 

In May 2020, SEMARNAT published a Basic Diagnosis for the Comprehensive Waste Management 2020. This diagnosis will serve as a tool and a guiding document to formulate and implement the National Program for the Prevention and Comprehensive Management of Special Handling Waste (PNPGIRME), based on in the principles of reduction, reuse and recycling of waste. SEMARNAT plans to share responsibility between the different social and productive sectors, in partnership with the three levels of government (municipal, state and federal). 

Mexico needs advanced technologies to go along any initiative from the government, to effectively tackle environmental challenges derived from solid and hazardous waste management, specifically for medical waste generated as a result of the COVID-19 pandemic.   

According to SEMARNAT, per capita generation of urban solid waste is estimated in 0.94 kg per inhabitant per day and the total generation in the country is estimated at 120,128 tons per day. In terms of the classification of municipal solid waste, 31.6 percent is recyclable, 46.2 percent to organic waste and 22.0 percent to other types of waste.  Of the waste generated, 100,751 tons per day are collected, representing national coverage of 83.9 percent.  

In terms of the transfer of waste, there are approximately 26,615 collection vehicles, out of which 59.0 percent have compaction systems. 29.0 percent of those vehicles are models from before 1995 with at least 24 years of operation. The transfer of waste in Mexico is done in 127 facilities, located in 112 municipalities. 49.6 percent of these facilities are in municipalities with a population of more than 100,000 inhabitants. There are 173 solid waste collection centers in operation in 63 municipalities. The separation of solid waste is done in 144 municipalities. Of the separated waste collected 2,062 tons are organic waste and 3,219 tons are inorganic waste. There are 47 waste treatment plants that perform separation or recycling, crushing, compaction, composting and bio digestion.  

Considering the existing infrastructure to collect, separate, treat, and recycle solid waste, there are still significant opportunities available for U.S. products services and technologies that can be promoted directly to the suppliers and contractors of municipal solid waste management services in the different municipalities in Mexico. Participating U.S. environmental companies will be able to find valuable connections during the Environmental Technologies Summit in Mexico City, not only with buyers, distributors, importers, end-users, service companies, but also with key government agencies.  

Moreover, the Mexican Congress has expressed the need to carry out inspection and surveillance actions necessary to verify compliance with environmental legislation in order to prevent Mexico’s natural areas from being contaminated with biohazardous waste resulting from the COVID-19 pandemic. According to the Congress, the pandemic had generated around 350 tons of medical waste, harmful to public health and the environment, as of May 2021. According to a senior SEMARNAT official, each patient generates an average of 2.0 to 2.2 kilograms of hazardous waste per day.   

There is a Mexican technical regulation for hazardous waste (NOM-087) that establishes the guidelines for the separation, packaging, storage, collection, transportation, treatment and final disposal of hazardous waste. On August 2020, SEMARNAT published an updated list of companies authorized companies to manage hazardous waste. During this Trade Mission, the companies authorized for the collection, transport and treatment for hazardous, biological, and infectious waste will be invited to participate and meet with U.S. suppliers of medical waste management technologies, which represents an important area of opportunity in the coming years.  

Peru’s Water Industry 

Peru has been one of the fastest growing Latin American economies since 2002 and is known for its prudent fiscal policies.  Structural reforms and sound macroeconomic policies created high growth, low inflation, and a greatly reduced poverty rates from 52.2 percent in 2005 to 20.5 percent in 2018.  Peru’s Gross Domestic Product (GDP) averaged six percent growth from 2002 through 2013, then slowed to 2.5 to 4 percent, and in 2019 grew by 2.2 percent, significantly higher than the estimated 0.6 percent regional average. Private investment comprised more than two-thirds of Peru’s total investment in 2019.  The International Monetary Fund (IMF) and the World Bank have estimated that Peru’s GDP will fall between 4.5 and 4.7 percent in 2020 due to the global COVID-19 crisis, but the World Bank forecasted a rebound with 7 percent growth in 2021. Peru was reported the lowest country risk in the region, according to JP Morgan and may be better placed to recover than others in the region.     

Water and Wastewater Sector 

Water scarcity is an urgent threat to national welfare in Peru. With a population of 32 million, approximately 5 million people do not have access to safe drinking water. An estimated 11 million people lack functioning sewage systems and the resulting quality of life is poor. The disparity between urban and rural areas is sobering, even in Lima and Callao where the majority of the population is concentrated, not all wastewater is treated. Only 62% of drainage captured by Peru’s main water operator is recycled in treatment plants. 

Market Challenges 

Corruption continues to negatively affect Peru’s investment climate. Transparency International ranked Peru 101st out of 180 countries in its 2019 Corruption Perceptions Index.  In 2016, Brazilian company Odebrecht admitted it paid $29 million in bribes in Peru, leading to investigations involving high-level officials of the last four Peruvian administrations and halting progress on many major infrastructure projects, which continued through 2019.  Due to fear of even the appearance of corruption or favoritism, GOP procurement officials tend to be more cautious and slower in the decision-making process for government tenders and purchases.  Compounding the situation is a lack of capacity in the government’s ability to conceptualize, tender and manage large scale infrastructure projects.  Constant ministerial turn over during the past administration and pending government elections in April 2021 have and will continue to slow down decision making over the short to medium term.    

Opportunities 

Despite the above, the Government of Peru is aware of these shortcomings and the COVID pandemic has refocused efforts to address them. The Peruvian government’s foreign investment entity, ProInversión, has more than 250 projects with an investment of more than 800 million dollars.  ProInversión also reports tenders for wastewater treatment projects in several cities in the whole country. Desalination projects are also underway in Peru in order to meet the gap for potable water. There are nineteen desalination projects ongoing in coastal Peru. These types of projects invite private-sector foreign investment in the areas of design, engineering, construction, concession for the next 20 – 30 years (depending on the project), and advisory services for the supervision of the entire project. The Peruvian government seeks to award the projects only to a single company or consortium who has the ability to complete the entire project from start to finish. Because of the nature of the projects, opportunities for U.S. firms with expertise in wastewater treatment are abundant. The Peruvian government is amenable to PPPs, seeing them as a way to distribute risk and resources between private and public entities and efficiently develop and maintain infrastructure projects. The participation of the private sector will reduce the infrastructure gap by providing necessary capacities, expertise, and technology transfer in the water sector. 

                                                               Mission Statement 

                             U.S. Environmental Technologies Virtual Trade Mission to Latin America 

                                                        Mexico, Ecuador, and Peru 

                                                             October 21 - 29, 2021 

MISSION DESCRIPTION 

The United States Department of Commerce, International Trade Administration, U.S. Commercial Service is organizing the “U.S. Environmental Technologies Virtual Trade Mission to Latin America” from October 21 - 29, 2021. 

The Environmental Technologies Virtual Trade Mission to Latin America is intended to include representatives from a variety of U.S. solid waste and recycling, and water and wastewater technology manufacturers and service providers and associations and trade organizations. The Trade Mission will introduce the participants to foreign government experts and decision makers, service providers, end-users, and prospective partners whose needs and capabilities are best suited to each U.S. participant’s strengths. Participating in an official U.S. virtual industry delegation will enhance the participants’ ability to secure key business and government meetings in Latin America and to also more effectively promote U.S. goods and services to a wider yet targeted audience. The virtual meetings will match the delegates with potential business partners, distributors or importers in these three markets. Moreover, key local industry leaders will brief mission participants on local market conditions, needs and opportunities in the various regions, and domestic regulatory and policy issues that impact environmental technologies.  

The Trade Mission will commence with a spin-off to Ecuador for solid waste management and recycling technology providers. The Ecuador portion will provide mission participants with B2B meetings and meetings with relevant ministries to learn of the new government’s solid waste and recycling priorities. Following the spin-off in Ecuador, all participants are invited to join an Environmental Technologies Virtual Summit based in Mexico City, which will benefit both U.S. solid waste management and recycling firms, as well as U.S. water and wastewater technology providers. This central event will include presentations from government and private sector leaders on opportunities in Mexico, B2B matchmaking, and networking opportunities.  

Following the virtual summit in Mexico City, water and wastewater and solid waste/recycling technology providers will have the option for a spin-off to Peru to participate virtually in the hybrid ExpoAgua y Sostenibilidad Show - the premiere water and sustainability expo in Peru that offers the latest technological innovations and solutions. The event brings together leading companies, international experts, and government decision makers from both within Peru and the greater South American region. The United States has been selected as host country for 2021 (and was also host nation for the successful virtual show in 2020). This designation ensures premiere billing at the event, special informational sessions for each U.S. participant and high-level engagements with Peruvian government officials and U.S. Embassy leadership. Special virtual B2B meetings will also be organized. The Show has been certified under the U.S. Department of Commerce Trade Event Partnership Program.  

COMMERCIAL SETTING 

MEXICO 

The environmental technologies and water markets in Mexico are poised for growth over the next few years because of pressing environmental and water supply challenges, political will to fund projects in the sector, and a strong need for infrastructure modernization. Public and private-sector stakeholders are keen to address many of Mexico’s greatest challenges in these sectors with the latest products, technology, and expertise. 

Mexico’s Water Sector  

At the end 2019, Mexico’s total population was 127 million inhabitants, with 25 percent living in urban areas and 75 percent in rural areas. Of the total freshwater availability in Mexico, 77 percent is consumed by the agricultural sector, 14 percent is for human consumption, and 9 percent is consumed by the industrial sector. 

Mexico’s water industry is regulated by the National Water Commission (CONAGUA). CONAGUA is responsible for the administration of the country’s water resources, rivers, dams, lakes, and oceans. CONAGUA has 13 regional offices that implement and execute the National Water Plan in coordination with CONAGUA’s Mexico City office.  

According to CONAGUA, Mexico had 965 potable water treatment plants, 2,540 municipal wastewater treatment plants, and 2,832 industrial wastewater treatment plants at the end of 2019. According to members of the National Association of Water and Sanitation Companies (ANEAS), the potable water treatment plants are operating at 65 percent of their capacity,  the municipal wastewater treatment plants operate at 55 percent of their capacity, and the industrial wastewater treatment plants only operate at 40 percent of their capacity. 

According to ANEAS, CONAGUA lacks the economic resources to properly maintain the country’s water infrastructure and therefore has invited private contractors to participate in the modernization of existing infrastructure by bidding on public-private partnerships to upgrade the infrastructure and build new potable and municipal wastewater treatment plants. 

CONAGUA’s 2020-2024 National Water Program envisions the construction of 30 new municipal wastewater treatment plants and two desalination plants.  Other projects include the modernization of the Water Measurement National Network and Modernization of the National Weather Service.  

The Mexico City Water System (SACMEX) administers and operates 884 water wells; 268 pumping stations; 58 potable water treatment  plants; 26 municipal wastewater treatment plants; 375 water storage tanks; 732 kilometers of water pipelines and aqueducts; 1,274 kilometers of primary water pipelines; and  11,971 kilometers of secondary water pipelines.  SACMEX has indicated that during 2021, it will publish tenders for 16 potable water treatment plants. 

CONAGUA and local water authorities from several border cities, where more than 3,800 in-bond manufacturing plants operate, are considering upgrading existing municipal wastewater treatment plants and building over 40 new plants during 2021-2024. 

ANEAS and CONAGUA officials advise U.S. water equipment manufacturers and services suppliers to work with a local partner to facilitate the participation in Mexico’s water industry.  ANEAS estimates that Mexico has over 300 local water industry suppliers located in major cities of Mexico that are potential partners for U.S. companies. This Trade Mission will help participating U.S. water companies connect with those potential partners. 

Mexico’s Waste Management and Recycling Sectors 

The Secretariat of Environment and Natural Resources (SEMARNAT) is the federal entity in charge of the laws, standards, programs, and initiatives that shape the environmental sector in Mexico. One of SEMARNAT’s top priorities is to promote green development in Mexico—advancing economic growth and development by promoting a more competitive, sustainable, and low-carbon-emissions economy. 

In May 2020, SEMARNAT published a Basic Diagnosis for the Comprehensive Waste Management 2020. This diagnosis will serve as a tool and a guiding document to formulate and implement the National Program for the Prevention and Comprehensive Management of Special Handling Waste (PNPGIRME), based on in the principles of reduction, reuse and recycling of waste. SEMARNAT plans to share responsibility between the different social and productive sectors, in partnership with the three levels of government (municipal, state and federal). 

Mexico needs advanced technologies to go along any initiative from the government, to effectively tackle environmental challenges derived from solid and hazardous waste management, specifically for medical waste generated as a result of the COVID-19 pandemic.   

According to SEMARNAT, per capita generation of urban solid waste is estimated in 0.94 kg per inhabitant per day and the total generation in the country is estimated at 120,128 tons per day. In terms of the classification of municipal solid waste, 31.6 percent is recyclable, 46.2 percent to organic waste and 22.0 percent to other types of waste.  Of the waste generated, 100,751 tons per day are collected, representing national coverage of 83.9 percent.  

In terms of the transfer of waste, there are approximately 26,615 collection vehicles, out of which 59.0 percent have compaction systems. 29.0 percent of those vehicles are models from before 1995 with at least 24 years of operation. The transfer of waste in Mexico is done in 127 facilities, located in 112 municipalities. 49.6 percent of these facilities are in municipalities with a population of more than 100,000 inhabitants. There are 173 solid waste collection centers in operation in 63 municipalities. The separation of solid waste is done in 144 municipalities. Of the separated waste collected 2,062 tons are organic waste and 3,219 tons are inorganic waste. There are 47 waste treatment plants that perform separation or recycling, crushing, compaction, composting and bio digestion.  

Considering the existing infrastructure to collect, separate, treat, and recycle solid waste, there are still significant opportunities available for U.S. products services and technologies that can be promoted directly to the suppliers and contractors of municipal solid waste management services in the different municipalities in Mexico. Participating U.S. environmental companies will be able to find valuable connections during the Environmental Technologies Summit in Mexico City, not only with buyers, distributors, importers, end-users, service companies, but also with key government agencies.  

Moreover, the Mexican Congress has expressed the need to carry out inspection and surveillance actions necessary to verify compliance with environmental legislation in order to prevent Mexico’s natural areas from being contaminated with biohazardous waste resulting from the COVID-19 pandemic. According to the Congress, the pandemic had generated around 350 tons of medical waste, harmful to public health and the environment, as of May 2021. According to a senior SEMARNAT official, each patient generates an average of 2.0 to 2.2 kilograms of hazardous waste per day.   

There is a Mexican technical regulation for hazardous waste (NOM-087) that establishes the guidelines for the separation, packaging, storage, collection, transportation, treatment and final disposal of hazardous waste. On August 2020, SEMARNAT published an updated list of companies authorized companies to manage hazardous waste. During this Trade Mission, the companies authorized for the collection, transport and treatment for hazardous, biological, and infectious waste will be invited to participate and meet with U.S. suppliers of medical waste management technologies, which represents an important area of opportunity in the coming years.  

ECUADOR 

Ecuador, an Andean country of over 17 million, offers promising market opportunities in the solid waste management and recycling sectors. Recent environmentally friendly government laws and policies are pushing increased investment in these sectors. More importantly, Ecuador’s tourism industry, which comprises nearly two percent of GDP, relies heavily on ecotourism and preserving the country’s cherished and vulnerable ecosystems. While the economy is expected to shrink by nine percent in 2020 due the pandemic-induced economic downturn, the economy is projected to grow by three percent in 2021, with tourism remaining an important driver of economic recovery. Ecuador has also made recent advances in its trade relationship with the United States, signing the Protocol on Trade Rules and Transparency in December 2020. Further deepening of economic ties, for which there exists significant political will, depends on Ecuador carrying out needed reforms to open its economy to investment and reduce trade barriers. A new administration will take office in May 2021, offering opportunities for U.S. companies to make important contacts in relevant ministries and learn of the new government’s solid waste and recycling priorities. 

Ecuador’s Solid Waste Management and Recycling Sectors 

Solid Waste Management Opportunities 

Solid waste management are burgeoning industries in Ecuador. In recent years, the Government of Ecuador has implemented new laws and policies to control increased solid waste and support more environmentally friendly practices. The current Minister of Environment and Water counts improved waste management practices among top Ministry of Environment and Water (MAAE) priorities.   

The Organic Environmental Code (COA) of 2018 assigns the role of National Environmental Authority (AAN) to the MAAE, which can exercise leadership, planning, regulation, control and integral management of solid waste. However, the provision of public solid waste management services is the exclusive domain of the autonomous decentralized municipal governments (GADs).  MAAE registers data through the National Program for the Integral Management of Solid Waste (PNGIDS), and reports that 53 percent of municipalities dispose of their waste in an adequate way (sanitary landfills or emerging cells), in compliance with environmental regulations. The Association of Ecuadorian Municipalities (AME) collects information from the 221 GADs through the National Municipal Information System (SNIM) with the objective of developing pro-environment actions, priorities, and commitments. According to the SNIM, 43 percent (96 municipalities) disposed of solid waste in sanitary landfills, 36 percent (79 municipalities) in open dumps, and 21 percent (46 municipalities) in pop-up cells. In Ecuador, there are 72 sanitary landfills - 45 of these have an environmental license, 16 are in the process of acquiring a license, and 11 do not have any license.   

Ecuador’s five major cities (Quito, Guayaquil, Cuenca, Manta and Ambato) produce a majority of the solid waste, which was an average of 0.58 Kg of solid waste per inhabitant per day in 2016 (0.73 Kg per inhabitant per day in the Galapagos Islands). According to the Quito Metropolitan Cleaning Company, Quito itself generates 2,200 tons of solid waste per day. A 2016 study by health researcher María Fernanda Soliz assessed 4.1 percent of municipalities dump their solid waste directly into rivers, posing challenges for the country’s vulnerable ecosystems.  

The MAAE, through Extended Producer Responsibility (EPR) regulations, has forced both producers and downstream retailers to focus on ecological and sustainable systems that require tire, cell phone, and agrochemical companies to take responsibility for their waste products and use MAAE-qualified companies to handle and dispose of their waste. Producers are now responsible for managing their products throughout the life cycle, which includes impacts of material selection, the production processes, and product use, as well as the treatment or final disposal of the product after its useful life ends. The Regulation to the Organic Code of the Environment (RCOA), effective 2019, indicates that MAAE will issue technical regulations outlining the type of waste included in EPR regulations. It also establishes that comprehensive waste management protocols will be governed by the principles of ensuring quality, eco-design, and manufacturing of products with characteristics that favor the use and minimization of waste, thereby contributing to the development of a circular economy. 

Galapagos Islands – Marine Debris and Solid Waste Management Opportunities 

Marine debris and solid waste management is a significant challenge that threatens the Ecuador’s Galapagos ecosystem, making headlines in 2020. In addition to natural currents that bring trash from South American countries, each year a large government-subsidized Chinese fishing fleet dumps its litter directly in the waters near the Galapagos’ exclusive economic zone. A three-fold population increase over the last three decades also has contributed greatly to Galapagos’ waste management problems. Solid waste is dumped and buried in an open-air municipal waste disposal facility with limited recycling capabilities.   

Recent Recycling Regulations Offer Opportunities 

In 2019, Ecuador signed the Circular Economy Pact, which will allow the promotion of productive initiatives based on recycling. The first National Assembly debate on the Organic Law Project on Circular Economy was on December 3, 2020. The bill now returns to the National Assembly’s Economic Development Commission for a second debate. The circular economy is based on four pillars: sustainable production, responsible consumption, integral waste management, and project financing.   

Considering the recent regulations, many potential opportunities for manufacturers of recycling equipment exist. While Ecuador has done well at recycling PET plastics, cardboard, and paper, additional business opportunities are concentrated in the following sectors: 

• Processing plants and machinery, including garbage trucks and garbage compactors;  
• Recycling of high- and low-density plastics, Tetra Pak containers, and glass; and  
• Leachate treatment technologies.  

PERU

Peru’s Water Industry 

Peru has been one of the fastest growing Latin American economies since 2002 and is known for its prudent fiscal policies.  Structural reforms and sound macroeconomic policies created high growth, low inflation, and a greatly reduced poverty rates from 52.2 percent in 2005 to 20.5 percent in 2018.  Peru’s Gross Domestic Product (GDP) averaged six percent growth from 2002 through 2013, then slowed to 2.5 to 4 percent, and in 2019 grew by 2.2 percent, significantly higher than the estimated 0.6 percent regional average. Private investment comprised more than two-thirds of Peru’s total investment in 2019.  The International Monetary Fund (IMF) and the World Bank have estimated that Peru’s GDP will fall between 4.5 and 4.7 percent in 2020 due to the global COVID-19 crisis, but the World Bank forecasted a rebound with 7 percent growth in 2021. Peru was reported the lowest country risk in the region, according to JP Morgan and may be better placed to recover than others in the region.     

Water and Wastewater Sector 

Water scarcity is an urgent threat to national welfare in Peru. With a population of 32 million, approximately 5 million people do not have access to safe drinking water. An estimated 11 million people lack functioning sewage systems and the resulting quality of life is poor. The disparity between urban and rural areas is sobering, even in Lima and Callao where the majority of the population is concentrated, not all wastewater is treated. Only 62% of drainage captured by Peru’s main water operator is recycled in treatment plants. 

Market Challenges 

Corruption continues to negatively affect Peru’s investment climate. Transparency International ranked Peru 101st out of 180 countries in its 2019 Corruption Perceptions Index.  In 2016, Brazilian company Odebrecht admitted it paid $29 million in bribes in Peru, leading to investigations involving high-level officials of the last four Peruvian administrations and halting progress on many major infrastructure projects, which continued through 2019.  Due to fear of even the appearance of corruption or favoritism, GOP procurement officials tend to be more cautious and slower in the decision-making process for government tenders and purchases.  Compounding the situation is a lack of capacity in the government’s ability to conceptualize, tender and manage large scale infrastructure projects.  Constant ministerial turn over during the past administration and pending government elections in April 2021 have and will continue to slow down decision making over the short to medium term.    

Opportunities 

Despite the above, the Government of Peru is aware of these shortcomings and the COVID pandemic has refocused efforts to address them. The Peruvian government’s foreign investment entity, ProInversión, has more than 250 projects with an investment of more than 800 million dollars.  ProInversión also reports tenders for wastewater treatment projects in several cities in the whole country. Desalination projects are also underway in Peru in order to meet the gap for potable water. There are nineteen desalination projects ongoing in coastal Peru. These types of projects invite private-sector foreign investment in the areas of design, engineering, construction, concession for the next 20 – 30 years (depending on the project), and advisory services for the supervision of the entire project. The Peruvian government seeks to award the projects only to a single company or consortium who has the ability to complete the entire project from start to finish. Because of the nature of the projects, opportunities for U.S. firms with expertise in wastewater treatment are abundant. The Peruvian government is amenable to PPPs, seeing them as a way to distribute risk and resources between private and public entities and efficiently develop and maintain infrastructure projects. The participation of the private sector will reduce the infrastructure gap by providing necessary capacities, expertise, and technology transfer in the water sector. 

MISSION GOALS  

The goals of the U.S. Environmental Technologies Trade Mission to Latin America are as follows:  

1. To introduce the delegates to the waste management, recycling, and water and wastewater treatment technology opportunities in Mexico, Ecuador and Peru. 
2. To help participants gain market exposure with Mexican, Ecuadorean and Peruvian buyers. 
3. To match participants with business prospects to increase U.S. exports of environmental goods, services and technologies to Latin America.   

MISSION SCENARIO 

The three virtual stops on the Trade Mission itinerary are Ecuador; Mexico; and Peru.   

In all three countries, delegates will attend virtual U.S. Embassy industry briefings, networking events and take part in business-to-business matchmaking appointments with private sector organizations. Delegates will also learn about relevant policies, procedures and opportunities in Latin America’s environmental industry.  

These three countries are key regional locations for water, waste management and recycling technologies. End-users of these technologies and products often prefer to be serviced by distributors based in the main cities where our offices are located: Quito, Mexico City and Lima.   

U.S. Export Assistance Center trade specialists, primarily by members of the Global Environmental Technologies Team, will counsel participants before and after the trade mission.  Participation in the mission will include the following:  

• Pre-travel briefing/webinar on subjects ranging from business practices in Ecuador, Mexico and Peru, to technical and logistical guidance; 
• U.S. Embassy and U.S. Consulate briefings on the business and political climates in the environmental sector of the three countries;   
• Industry briefings on “doing business in Mexico, Ecuador and Peru,” with focus on the water, wastewater, solid waste, medical waste and recycling sectors;  
• Pre-scheduled virtual meetings with potential partners, distributors, end users, or local industry contacts in Ecuador and Mexico. Optional exhibitor package in Peru, in local event under the Trade Events Partnership Program (TEPP) of the U.S. Department of Commerce; 
• Option to participate in the Summit only in Mexico, which will include the conference programming and self-directed matchmaking via the My Business Matches virtual platform

Market briefs for the three stops:   

Mexico – Water Industry 

Mexico´s National Water Commission, the agency responsible for the administration of Mexico´s water resources, recently published the 2020-24 National Water Program, in which it outlines the water priorities to strengthen existing water infrastructure and upgrade potable, municipal and industrial wastewater treatment plants. CONAGUA’s plan includes the participation of the private sector, through public-public partnerships in projects in Mexican border cities as well as major metropolitan urban cities. Mexican water authorities and Mexican water executives continue to be very receptive to U.S. technology and services companies, as they value the quality of U.S. technology. 

CONAGUA´s main challenges indicated in the 2020-24 National Water Program are over-exploitation, inadequate infrastructure, and contamination of water resources. Nine million people do not have access to potable water, and 11 million are not connected to sewage lines. The plan also includes initiatives to modernize its system to measure water consumption and improve water management in urban and agricultural areas of the country. 

Mexico – Solid Waste Management and Recycling 

Mexico is an important market for U.S. environmental technologies companies, including solid waste management and recycling companies. Considering SEMARNAT’s continued priority of advancing green economic development and pressing environmental issues, this market will continue to grow. There is a particularly important commercial opportunity for U.S. suppliers to help the Mexican Government tackle the challenges of hazardous waste resulting from the COVID-19 pandemic, as Mexico produces. U.S. suppliers of advanced technologies are well positioned to work with government and private sector partners to help address this and other environmental challenges in Mexico. 

Ecuador – Solid Waste Management and Recycling 

Solid waste management and recycling are burgeoning industries in Ecuador. The importance of eco-tourism to the country’s economy and post-pandemic economic recuperation plans ensure a positive future for industries in this sector.  In recent years, the Government of Ecuador has implemented new laws and policies to control increased solid waste management and support more environmentally friendly recycling practices. The current Minister of Environment and Water counts improved waste management practices among top ministry priorities.  Likewise, municipal governments - only 53 percent of which dispose of their waste in an adequate way - are eager to adopt new solid waste and recycling technologies to meet their environmental obligations.  Recent negative press surrounding solid waste management in the Galapagos Islands has focused national attention on the issue.  As a recent signatory to the Circular Economy Pact, Ecuador has a recycling-related bill currently under debate in its National Assembly.  Pro-environment policies receive widespread support across Ecuador’s political spectrum, making September an ideal time to engage Ecuador’s new administration taking office in May 2021. 

Peru – Water Industry 

According to the National Sanitation Plan for the years 2017- 2021, Peru has the goal to achieve 100 percent of Potable Water Service in urban areas in the year 2021 and 100 percent in rural areas in 2030.  The GOP finances investments in drinking water, sewerage, and wastewater treatment, through transfers (subsidies) to Regional Governments.  Also, the Ministry of Housing Construction and Sanitation uses Work for Taxes as a system to attract private investment in water infrastructure as well as PPPs. The Ministry of Housing is promoting a project portfolio in drinking water, sewerage, and wastewater treatment for more than $3 billion to benefit 20 percent of the Peruvian population. The main projects will be developed through a PPP and includes design, construction, operation, and maintenance. Under the framework of the Emergency Decree No. 011-2020, the Ministry of Housing Construction and Sanitation has diversified the mechanisms for the supply of drinking water and wastewater treatment. The Emergency Decree allows private water providers to supply surface, underground or desalinated water to the Regional Governments in benefit of the population. 

MISSION SCHEDULE – OCTOBER 21 - 29, 2021   

Thursday, October 21 - Friday, October 22, 2021  - Ecuador Spin-Off

• Country Briefing by the U.S. Embassy
• Virtual Customized Business-to-Business and Business-to-Government Meetings 

Monday, October 25 - Friday, October 29, 2021 - Mexico, Virtual Environmental Technologies Summit

• Presentations by Solid Waste and Water Authorities in Mexico
• Country Briefing by the U.S. Embassy in Mexico
• Networking between panelists and attendees of Summit (via My Business Matches Virutal Platform)

Tuesday, October 26 - Friday, October 29, 2021  - Mexico Trade Mission Stop for Companies that Select the “Full Program Option”

• Virtual Business-to-Business and Business-to-Government Meetings (each company will receive a customized meeting schedule)

Wednesday, October 27, 2021 - Optional Peru Spin-Off for All Companies      

• Country Briefing by U.S. Embassy
• Participation at Virtual ExpoAgua y Sostenibilidad Trade Show
• Virtual Exhibit booth remains open until November 26
•  Attendees have the opportunity to participate in-person at the hybrid ExpoAgua Show as part of the U.S. Pavilion (the U.S. is the host nation with U.S. companies receiving premier billing).  Please contact your local Trade Specialist or our colleauges in Peru for benefits, cost details, and additional information. 

IMPORTANT NOTE ABOUT THE COVID-19 PANDEMIC 

Travel and in-person activities are contingent upon the safety and health conditions in the United States and the mission countries.  Should safety or health conditions not be appropriate for travel and/or in-person activities, the Department will consider postponing the event or offering a virtual program in lieu of an in-person agenda.  In the event of a postponement, the Department will notify the public and applicants previously selected to participate in this mission will need to confirm their availability but need not reapply. Should the decision be made to organize a virtual program, the Department will adjust fees accordingly, prepare an agenda for virtual activities, and notify the previous selected applicants with the option to opt-in to the new virtual program. 

PARTICIPATION REQUIREMENTS 

All parties interested in participating in the Trade Mission to Latin America must complete and submit an application to the Department of Commerce for consideration. All applicants will be evaluated on their ability to meet certain conditions and best satisfy the selection criteria as outlined below. A minimum of ten (10) and a maximum of twelve (12) companies will be selected to participate in the Trade Mission from the applicant pool for the Mexico summit. The target number of companies for Ecuador is four (4) and for Peru is five (5). U.S. companies already doing business in Latin America as well as U.S. companies seeking to enter the markets for the first time may apply. 

FEES AND EXPENSES 

After a company or organization has been selected to participate on the mission, a payment to the Department of Commerce in the form of a participation fee is required. The participation fee for the Environmental Technologies Trade Mission to Latin America will be as outlined below for small-medium sized enterprises (SME)1 and for large firms or trade associations. The fee for each additional firm representative (large firm or SME/trade organization) is $150 per mission stop. Expenses for travel, lodging, meals, and incidentals will be the responsibility of each mission participant. Interpreter and driver services can be arranged for additional cost. Delegation members will be able to take advantage of U.S. Embassy rates for hotel rooms. 

*Cost per company, no fees for additional participants from the same company

If and when an applicant is selected to participate on a particular mission, a payment to the Department of Commerce in the amount of the designated participation fee below is required. Upon notification of acceptance to participate, those selected have 5 business days to submit payment or the acceptance may be revoked. 

Participants selected for a trade mission will be expected to pay for the cost of personal expenses, including, but not limited to, international travel, lodging, meals, transportation, communication, and incidentals, unless otherwise noted. Participants will, however, be able to take advantage of U.S. Government rates for hotel rooms. In the event that a mission is cancelled, no personal expenses paid in anticipation of a mission will be reimbursed. However, participation fees for a cancelled mission will be reimbursed to the extent they have not already been expended in anticipation of the mission. 

If a visa is required to travel on a particular mission, applying for and obtaining such a visa will be the responsibility of the mission participant. Government fees and processing expenses to obtain such a visa are not included in the participation fee. However, the Department of Commerce will provide instructions to each participant on the procedures required to obtain business visas. 

Trade Mission members participate in trade missions and undertake mission-related travel at their own risk. The nature of the security situation in a given foreign market at a given time cannot be guaranteed. The U.S. Government does not make any representations or guarantees as to the safety or security of participants. The U.S. Department of State issues U.S. Government international travel alerts and warnings for U.S. citizens available at https://travel.state.gov/content/passports/en/alertswarnings.html. Any question regarding insurance coverage must be resolved by the participant and its insurer of choice. 

CONDITIONS FOR PARTICIPATION 

Applicants must submit a completed and signed mission application and supplemental application materials, including adequate information on their products and/or services, primary market objectives, and goals for participation that is adequate to allow the Department of Commerce to evaluate their application. If the Department of Commerce receives an incomplete application, the Department may either: reject the application, request additional information/clarification, or take the lack of information into account when evaluating the application. If the requisite minimum number of participants is not selected for a particular mission by the recruitment deadline, the mission may be cancelled.  The nature of the security situation or health risk in a given foreign market at a given time cannot be guaranteed.   

Each applicant must also certify that the products and services it seeks to export through the mission are either produced in the United States, or, if not, are marketed under the name of a U.S. firm and have at least fifty-one percent U.S. content by value. In the case of a trade association or organization, the applicant must certify that, for each firm or service provider to be represented by the association/organization, the products and/or services the represented firm or service provider seeks to export are either produced in the United States or, if not, marketed under the name of a U.S. firm and have at least 51% U.S. content. 

A trade association/organization applicant must certify to the above for all of the companies it seeks to represent on the mission. 

In addition, each applicant must: 

· Certify that the products and services that it wishes to market through the mission would be in 

compliance with U.S. export controls and regulations; 

· Certify that it has identified any matter pending before any bureau or office in the Department of Commerce; 

· Certify that it has identified any pending litigation (including any administrative proceedings) to which it is a party that involves the Department of Commerce; and 

· Sign and submit an agreement that it and its affiliates (1) have not and will not engage in the bribery of foreign officials in connection with a company’s/participant’s involvement in this mission, and (2) maintain and enforce a policy that prohibits the bribery of foreign officials. 

In the case of a trade association/organization, the applicant must certify that each firm or service provider to be represented by the association/organization can make the above certifications. 

SELECTION CRITERIA 

Targeted mission participants are U.S. firms, services providers and trade associations/organizations providing or promoting U.S. products and services that have an interest in entering or expanding their business in the mission’s destination country. The following criteria will be evaluated in selecting participants: 

· Suitability of the applicant’s (or in the case of a trade association/organization, represented firm’s or service provider’s) products or services to these markets; 

· The applicant’s (or in the case of a trade association/organization, represented firm’s or service provider’s) potential for business in the markets, including likelihood of exports resulting from the mission; and 

· Consistency of the applicant’s (or in the case of a trade association/organization, represented firm’s or service provider’s) goals and objectives with the stated scope of the mission. 

Balance of company size and location may also be considered during the review process. 

Referrals from a political party or partisan political group or any information, including on the application, containing references to political contributions or other partisan political activities will be excluded from the application and will not be considered during the selection process. The sender will be notified of these exclusions. 

TIMEFRAME FOR RECRUITMENT AND APPLICATIONS 

Mission recruitment will be conducted in an open and public manner, including publication in the Federal Register, posting on the Commerce Department trade mission calendar and other Internet web sites, press releases to general and trade media, direct mail, notices by industry trade associations and other multiplier groups, and publicity at industry meetings, symposia, conferences, and trade shows. Recruitment for the mission will begin immediately and conclude no later than August 6, 2021.  The U.S. Department of Commerce will review applications and make selection decisions on a rolling basis.  Applications received after the August 6, 2021 deadline will be considered only if space and scheduling constraints permit. 

CONTACT INFORMATION 

U.S. Commercial Service – Global Environmental Technologies Team:  

Elizabeth Laxague 

Global Environmental Technologies Team - Water Technologies Deputy Team Leader  

U.S. Commercial Service, Milwaukee 

414-336-1953 

Elizabeth.Laxague@trade.gov 

Ryan Russell 

Global Environmental Technologies Team Leader  

U.S. Commercial Service, Pittsburgh 

412-644-2817   

Ryan.Russell@trade.gov  

Allie VanDriel

International Trade Specialist

U.S. Commercial Service, Grand Rapids

616-240-0851

Allie.VanDriel@trade.gov 

U.S. Commercial Service in Mexico: 

Braeden Young 

Commercial Officer and Regional Standards Attaché 

braeden.young@trade.gov 

Francisco Ceron 

Senior Commercial Specialist (Water Sector) 

francisco.ceron@trade.gov 

Claudia Salgado 

Commercial Specialist (Solid Waste and Recycling) 

claudia.salgado@trade.gov 

Alejandra Calderon 

Commercial Assistant 

alejandra.calderon@trade.gov 

U.S. Department of State in Ecuador: 

Sofía Zárate 

Commercial Specialist (Solid Waste and Recycling) 

zaratesc@state.gov 

U.S. Commercial Service in Peru: 

Jorge Prado 

Commercial Specialist 

Jorge.Prado@trade.gov