The United States has warned that a new 5 per cent tariff will be imposed on Mexican goods unless Mexico delivers at least 200,000 acre-feet of water to Texas by December 31 under the 1944 Water Treaty. The figure is equal to about 246 million cubic meters.
President Donald Trump said Mexico currently owes the United States 800,000 acre-feet, or about 988 million cubic meters, from the Colorado and Rio Grande rivers. He stated that withholding water is damaging crop and livestock production in Texas.
"Mexico continues to violate our comprehensive Water Treaty, and this violation is seriously harming our BEAUTIFUL TEXAS CROPS AND LIVESTOCK," Trump wrote. "The longer Mexico takes to release the water, the more our Farmers are hurt. Mexico has an obligation to FIX THIS NOW."
If applied, the tariff would raise duties on Mexican imports not covered under the United States-Mexico-Canada Agreement from 25 per cent to 30 per cent. Existing tariffs on autos, auto parts, steel, and aluminum would remain in place.
Earlier in the year, the administration issued similar warnings, arguing that Mexico had delivered less than 30 per cent of its required water during the five-year cycle ending in October.
Mexican President Claudia Sheinbaum said in April that her administration had shared a proposal with the United States. "There have been three years of drought, and Mexico has been complying to the extent that water has been available," she said. "I am confident that, as with other issues, an agreement will be reached."
The 1944 Water Treaty requires Mexico to supply the United States with an average of 350,000 acre-feet per year, equal to about 432 million cubic meters, calculated over five years. Water is stored in the jointly managed Amistad and Falcon reservoirs along the Rio Grande.
Prolonged drought in both countries has reduced irrigation supply for farmers in South Texas. Dante Galeazzi of the Texas International Produce Association said water shortages are altering planting decisions in the Rio Grande Valley.
"Growers in the Valley, they're not able to plant what they want to, and they're not able to plant when they want to," Galeazzi said in April. "They've got to change their crop mix, because you think about valuable commodities like celery, which requires five to six waterings on a very specific schedule. If you don't have the water, you can't plant celery. That's the same issue across a lot of different commodities, broccoli, cauliflower, Brussels sprouts, your high-dollar fruits and vegetables require consistent water."
Talks between the two countries are expected to continue as the deadline approaches.
Source: FreightWaves
