December 15th, 2025
1. Trump warns he could impose a 5% tariff on Mexico for failing to comply with water treaty
US President Donald Trump accused Mexico of failing to comply with the 1994 water treaty to which both countries are party, and threatened to impose a 5% tariff on Mexican products if the water is not delivered immediately. The president said that Mexico owes more than 986 million cubic meters of water and demanded the transfer of 246 million cubic meters before December 31, with the rest to follow as soon as possible. The amount demanded exceeds the capacity of the Cutzamala System, which is 782 million cubic meters.
The demand for water began with Texas ranchers, but Mexican producers were also suffering from the drought. In response, last October, he said that the agreement would be fulfilled “little by little,” but assured that the treaty would not be renegotiated. According to the treaty, the United States must send 1.85 billion per year and Mexico 2.185 billion in five-year cycles, but in the last cycle (2020-2025), which ended in October, Mexico delivered less than half of what was agreed. President Claudia Sheinbaum stated that her government is already holding technical working meetings with the United States to comply with the treaty.
2. Main topics on Mexico’s legislative agenda at the end of the legislative period
The end of the second legislative period of 2025 was marked by three key reforms: the General Water Law, the General Circular Economy Law, and amendments to the General Import and Export Tax Law (LIGIE). The General Water Law reinforces the human right to water, establishes stricter penalties for water crimes, and seeks to combat the hoarding of this resource. In addition, it centralizes control of water resources in the state, seeking to ensure their equitable and sustainable use, while recognizing community water systems and promoting the harmonization of state laws.
On the other hand, the General Circular Economy Law promotes a more sustainable production and consumption model, encouraging the design of recyclable products, the creation of a National Circular Economy System, and Extended Producer Responsibility (EPR). Finally, the reforms to the LIGIE seek to protect domestic industry by applying strategic tariffs to more than 1,400 goods, combating smuggling, and harmonizing tariff classifications with international criteria. These initiatives reflect a comprehensive legislative effort to address the country’s environmental and economic challenges.
Milenio: Diputados cerrarán periodo de sesiones con discusión de reformas pendientes
La Jornada: Publica DOF la Ley General de Aguas; Conagua realizará estrategia para combatir acaparamiento
3. Mexican government presents progress on the Michoacán Plan and December activitiess
Claudia Sheinbaum’s government presented the progress of the “Michoacán Plan for Peace and Justice” and the calendar of activities for December, highlighting the joint work of 53 federal, state, and local agencies. Since its implementation, 405,375 home visits have been made in 102 municipalities to provide information about social programs and the presidential initiative. December activities include sporting events, “Tequio y activación por la paz” (Community service and peace activation), and “Ferias del Bienestar” (Wellness Fairs) in various municipalities, offering accessible services, procedures, and products. In addition, four “Sí al desarme, sí a la Paz” (Yes to Disarmament, Yes to Peace) campaigns will be carried out for the anonymous exchange of weapons for money, seeking to reduce violence.
In the field of education, 92% progress has been reported in the “Michoacán 2026 Plan,” with scholarships for 80,972 students, infrastructure improvements, the inauguration of 10 technological high schools, and the expansion of 20 campuses and 60 new National Cyber High Schools. In terms of food, 16 new corn collection centers have been opened, accumulating 7,012.8 tons collected, and the collection of lentils has begun, with distribution to start soon in Bienestar stores.
Infobae: Gobierno de Sheinbaum presenta avances del Plan Michoacán y calendario de actividades de diciembre
4. US Trade Representative says it is best to discuss the USMCA separately
Jamieson Greer, US Trade Representative, proposed the possibility of establishing parallel agreements with Canada and Mexico, noting that each country’s trade relations with the US have unique characteristics that could be addressed more effectively through separate negotiations. These parallel agreements would involve addressing specific issues bilaterally, allowing each country to adjust its commitments and priorities according to its own needs and circumstances, rather than relying exclusively on a trilateral framework such as the USMCA.
During an event organized by the Atlantic Council, Greer noted that the USMCA agreement, negotiated during Donald Trump’s first term, could be abandoned, revised, or renegotiated in its 2026 review. Although he noted that certain issues, such as the rule of law, could continue to be discussed bilaterally, the implementation of parallel agreements would allow for a more flexible approach tailored to each country’s key sectors, such as automotive, agriculture, and technology. This approach could redefine the trade dynamics between the three countries and open up new opportunities to strengthen bilateral relations.
El Economista: Greer reitera que tiene sentido negociar el T-MEC por separado con Canadá y México
5. Conagua will investigate 150 concessions granted by previous administrations following the approval of the new National Water Law
Following the approval of the new General Water Law, Conagua launched an investigation into 150 water concessions in Chihuahua, granted during the administrations of Vicente Fox and Enrique Peña Nieto. These concessions, representing 47 million cubic meters of water, were allegedly awarded to public officials and their relatives. Efraín Morales López, head of Conagua, stressed that the reform seeks to reorganize existing concessions to eradicate hoarding and overexploitation of water resources.
In this process, 53,600 concession titles have been reviewed, revealing that many of them, originally intended for agricultural use, are being used illegally on golf courses, sports complexes, and industries. As a result, Conagua has closed down the areas where irregularities were detected. The General Water Law establishes the State as the sole regulator of water resources in order to guarantee their equitable and sustainable distribution and protect the human right of access to water for present and future generations.
Infobae: Conagua investiga 150 concesiones otorgadas por Fox y Peña Nieto tras nueva Ley de Aguas en México