The United States and Mexico reached an agreement to resolve a long-running water dispute affecting farmers and ranchers along the Texas-Mexico border, just days after President Donald Trump promised to impose additional tariffs on Mexico.
Made public Friday, this deal will see Mexico covering their current commitments with respect to delivery into America and will initiate repayment terms with respect to a major water debt owed to Texas under the Water Treaty of 1944. Such an agreement affects both this five-year cycle and debt due from the last five-year cycle, according to statements provided by US and Mexican authorities.
The new agreement occurred just a short time after Trump threatened to impose an additional 5 percent tariff on imports from Mexico if the water issues were not fixed by the end of the year. The Trump administration claims Mexico is about 865,000 acre-feet short of mandated water delivery commitments into the Rio Grande Valley.
Water shortages hit South Texas agriculture
Communities along the Texas-Mexico border have faced years of water scarcity, with Rio Grande Valley farmers and ranchers reporting crop losses and job impacts tied to unreliable water access. The Trump administration has pledged a $12 billion aid package for farmers affected by broader trade disruptions, but water availability remains a critical issue for producers planning upcoming growing seasons.
Under the 1944 Water Treaty, Mexico is obligated to deliver 1.75 million acre-feet of water to the United States every five years from the Rio Grande River. In exchange, the United States must deliver 1.5 million acre-feet of water to Mexico from the Colorado River.
Mexico’s government, led by President Claudia Sheinbaum, has maintained that it has not violated the treaty, citing prolonged drought conditions in northern Mexico that have limited available water supplies. Mexican officials say deliveries have continued despite those challenges.
As part of the new understanding, Mexico has agreed to release 202,000 acre-feet of water to the United States, with deliveries expected to begin the week of December 15, 2025. Both governments acknowledged the importance of timely repayment of the remaining deficit from the previous water cycle and are negotiating a broader plan to fully meet treaty obligations by January 31, 2026.
The agreement also emphasizes improved cooperation and water management within the framework of the International Boundary and Water Commission, known as CILA in Mexico.
Administration says deal puts farmers first
U.S. Secretary of Agriculture Brooke Rollins praised the agreement, saying it brings long-needed certainty to producers in South Texas.
“President Trump continues to put American farmers first and is finally holding our international partners accountable to their obligations and commitments,” Rollins said. “Farmers across South Texas have been reeling from the uncertainty caused by the lack of water. Now they can expect the resources promised to them, thanks to President Trump’s leadership.”
Rollins noted that Mexico has delivered more water in the past year than in the previous four years combined, but emphasized that enforcement remains on the table.
“Although this is a step in the right direction, President Trump has been very clear: if Mexico continues to violate its commitments, the United States reserves the right and will impose 5 percent tariffs on Mexican products,” she said.
U.S. Deputy Secretary of State Christopher Landau echoed those remarks, calling the agreement a win for Texas producers who have long argued they were not receiving their fair share of water.
“For years, the people of Texas have been deprived of their fair share of water under a treaty with Mexico,” Landau said. “President Trump’s direct involvement and forceful leadership has once again led to tangible positive results.”
As Mexico ramps up deliveries, the U.S. Department of Agriculture said it is ready to work with Congress, interagency partners, and producers to provide greater predictability for Texas farmers as they head into the upcoming crop season. Officials also stressed the need for improved planning tools that would help producers manage water variability in times of drought.
»Related: Op-Ed: Mexico’s disregard for treaty has farmers on the brink
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