According to Bloomberg, in the context of increasing tensions in the agricultural sector and trade relations between the United States and Mexico, two significant agreements were reached on April 28 that could potentially change the situation and alleviate some of the existing standoff
These arrangements are of great importance both for stabilizing bilateral relations and for addressing a range of current issues in agriculture and natural resources. One of the key points of the agreements is Mexico’s consent to increase the water supplies it provides to farmers in Texas by six inflows of the Rio Grande River. This decision is to be implemented by the end of the current water cycle—thus, by October 24, 2023. It is important to note that this understanding is based on the 1944 Water Treaty, which regulates mechanisms for water resource sharing between the two countries. Under this treaty, Mexico commits to delivering a certain amount of water from the Rio Grande to the United States, while the U.S. is obligated to supply water from the Colorado River to Mexico. Bloomberg reports that, at present, the specific amounts of water to be transferred in the near future have not yet been determined. However, Mexican authorities confirmed their readiness to take urgent measures to prevent water shortages for American farmers and businesses. These measures include accelerating water transfers and making the most effective use of seasonal rains, which are crucial for the region’s agricultural sector. In addition to water supply issues, the parties reached an agreement on combating the pink bollworm, a pest that experts say can cause significant damage to livestock farming. This agreement has been a key step in avoiding potential restrictions on Mexican beef imports to the U.S., which previously threatened to cause substantial trade disruptions and losses for both countries. American experts emphasize that this cooperation will help maintain market stability and openness, ensuring food security and stability in trade relations. Furthermore, it is worth noting that despite the agricultural agreements, Mexico still faces tariff barriers imposed by the U.S.. On January 31 of the previous year, President Donald Trump announced the implementation of 25% tariffs on imports of certain goods from Canada, Mexico, and China. This decision was driven not only by trade disagreements but also by increasing threats related to the fentanyl flow and a rising trade deficit. According to reports from early March 2023, U.S. Secretary of Defense Lloyd Austin sent approximately three thousand troops to the region, including a motorized brigade with Stryker combat vehicles and an aerial unit with helicopters, to coordinate possible measures for border control and security with Mexico. This was part of broader efforts to strengthen border security and prevent illegal migration and smuggling. Another factor contributing to tension was the initiative of the U.S. administration, which announced in April 2023 its intention to impose a 21% tariff on Mexican tomato imports. This trade policy measure could potentially negatively impact Mexico’s export sector and vegetable prices in participating countries. Overall, the bilateral agreements of April 28 open a new chapter in the complex relations between the U.S. and Mexico, offering hope for reduced tensions and the development of more stable and predictable cooperation in agriculture, natural resources, and security. At the same time, significant economic and political challenges remain, and their resolution will require further efforts from both sides, aimed not only at short-term improvements but also at long-term collaboration.