Nick Kraft, senior analyst for water, agriculture and responsible investing at Eurasia Group: “Mexico’s sweeping water overhaul has been years in the making. Chronic drought and repeated water shortages, most visibly Monterrey’s near ‘Day Zero’ crisis in 2022-2023, have exposed the fragility of the country’s water system. Industrial growth along the northern border, including the 2020 cancellation of Constellation Brands’ $1.4 billion Mexicali brewery, underscored that water scarcity now dictates economic development. With the USMCA review approaching in 2026, President Claudia Sheinbaum is signaling self-sufficiency and resilience in the face of tightening regional and geopolitical pressures. Tighter state oversight will reshape Mexico’s most water-intensive sectors. Mexico’s agricultural industry, which consumes roughly three quarters of national withdrawals, should expect stricter extraction limits and heavier scrutiny on irrigation efficiency—particularly…”