Tensions between the United States and Mexico escalated this week after Washington warned it would impose a new 5% tariff on Mexican products if Mexico fails to deliver at least 200000 acres pie of water to Texas before December 31, under the 1944 Water Treaty. The volume is equivalent to around 246 million cubic meters.
US President Donald Trump stated that Mexico has an accumulated debt of 800000 acres pie, approximately 988 million cubic meters, from the Colorado and Bravo rivers, also known as the Rio Grande. According to Trump, the withholding of water is affecting agricultural and livestock production in Texas. "Mexico continues to violate our Water Treaty, and this violation is seriously harming our Texas crops and livestock," he wrote. "The longer Mexico delays releasing the water, the more our farmers suffer."
If implemented, the tariff would raise duties from 25% to 30% on Mexican imports not covered by the USMCA. Existing levies on cars, auto parts, steel and aluminum would remain unchanged.
The dispute has dragged on amid ongoing drought conditions. The US government issued similar warnings earlier this year, arguing that Mexico delivered less than 30% of the required volume during the five year cycle that ended in October. Mexican President Claudia Sheinbaum said in April that Mexico has proposed solutions and pointed to a three year drought that has limited water availability. "Mexico has complied to the extent that water has been available," she said.
The 1944 treaty stipulates that Mexico must deliver an average of 350000 acres pie per year, roughly 432 million cubic meters, calculated over a five year cycle. The water is stored in the binational Amistad and Falcon reservoirs on the Rio Grande.
Water shortages are already affecting Texas growers. Dante Galeazzi of the Texas International Produce Association explained that producers in the Rio Grande Valley are being forced to adjust planting decisions due to the lack of water. The restrictions limit the planting of crops that require precise irrigation, such as celery, broccoli, cauliflower, and premium fruits and vegetables.
"Growers cannot plant what they want or when they want. They have to change their crop mix," Galeazzi warned. Drought conditions and political pressure at the end of the current cycle are driving the debate, and negotiations are expected to continue over time.
Source: agrolatam.com
