Mexico's 1944 Treaty Water Debt Tops 50% as Initial Payment Agreed

Following the December 13 agreement with the US to deliver 249 million cubic meters of Rio Grande water, Mexico still owes over 50%—1,170 million cubic meters—of its 2020-2025 obligations under the 1944 Water Treaty, says Water Advisory Council president Raúl Rodríguez. The deal averts Trump's tariff threats, with more payments planned.

Building on the December 13, 2025, bilateral agreement detailed in prior coverage—which commits Mexico to releasing 249.163 million cubic meters starting mid-December to address part of the deficit—Water Advisory Council president Raúl Rodríguez highlighted the scale of Mexico's accumulated debt. In a MILENIO Televisión interview, he stated that for the 2020-2025 cycle, Mexico owes 1,170 million cubic meters out of the required 2,185 million, exceeding 50%.

This follows former President Trump's threats of 5% tariffs, prompting negotiations. Rodríguez noted the initial payment covers 25-30% of the debt within two months, with the rest to be renegotiated for the 2025-2030 period. He assured that sourcing water from international bodies would spare northern Mexico's agricultural producers, minimizing local impacts and stabilizing cross-border relations without commercial escalations.

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US and Mexican diplomats shaking hands over 1944 Water Treaty map by the flowing Rio Grande, symbolizing resolved water delivery dispute.
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Mexico and US agree on water delivery under 1944 treaty

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Mexico and the United States reached an agreement on December 13, 2025, for the delivery of 249.163 million cubic meters of Rio Grande water, starting next week, following tensions over the 1944 Water Treaty. The deal averts a 5% tariff threat from Donald Trump and addresses the previous water deficit. Mexico maintains it complies with the treaty despite drought in the northern border region.

Building on December's initial accord, Mexico and the US agreed to a minimum annual Rio Grande water supply of 350,000 acre-feet, addressing drought deficits and past shortfalls under the 1944 Water Treaty. The deal follows a call between Presidents Sheinbaum and Trump, with plans for debt repayment and monthly oversight to support border communities.

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Petróleos Mexicanos (Pemex) reported a fifth consecutive year of rising gasoline production in 2025, reaching 511,000 barrels per day, during the presentation of its 2026 plan. The company also disclosed that its debt hit the lowest level in 11 years and clarified details on crude oil sales to Cuba. These developments are part of the Mexican government's energy sovereignty strategy.

Mexico's Senate has approved legislation imposing tariffs of up to 50 per cent on more than 1,400 products from Asian countries, primarily targeting Chinese imports to bolster domestic producers. President Claudia Sheinbaum defended the move, stating it supports the 'Plan Mexico' without harming the national economy. Beijing has criticised the duties as damaging to its interests.

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President Claudia Sheinbaum revealed on December 22, 2025, that Enrique Peña Nieto's government condoned a Cuban debt with Petróleos Mexicanos (Pemex) in 2013. Additionally, 70% of a historical debt with Bancomext, dating back to the 1990s, was forgiven, and the remainder restructured to boost bilateral trade. These deals are part of Mexico's longstanding support for Cuba.

The Colombian government set a debt quota of $152.25 trillion to finance part of the 2026 General National Budget, according to a Ministry of Finance decree. This amount, lower than in 2025, accounts for four points of GDP and is split between treasury bonds and temporary operations.

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In remarks following her disclosures on historical debt relief, President Claudia Sheinbaum emphasized that energy sector deals with Cuba are fully compliant with legal standards, aiming to address concerns over their legitimacy.

 

 

 

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