Mexico-Israel: A Partnership for Trade, Tech, and Water Solutions

Q: How would you describe the state of trade and investment between Mexico and Israel? 

A: This year marks the 25th anniversary of the Mexico-Israel Free Trade Agreement, which has strengthened economic ties between both nations by leveraging their complementary economies. Over the years, bilateral trade has grown steadily and now exceeds US$1 billion annually, with a balanced flow of exports and imports. Mexico is Israel’s second-largest trading partner in Latin America, following Brazil, while Israel is Mexico’s most significant partner in the Middle East. This strong commercial relationship continues to create valuable opportunities for businesses and governments, fostering collaboration across multiple sectors.

Q: Which steps or initiatives is the Embassy considering to ensure that the economic cooperation and investment opportunities between Israel and Mexico remain resilient? 

A: The Israeli Embassy in Mexico, along with its commercial department, actively promotes economic cooperation by identifying and facilitating business opportunities. This is achieved through sector-specific events in areas such as agriculture, water, cybersecurity, fintech, and foodtech, where Israeli companies showcase their innovations to Mexican businesses and government representatives. Additional initiatives include webinars, roadshows, business delegations, and visits to Israel for those interested in exploring its economy and technology firsthand. Given its free trade agreement with Mexico, Israel can serve as a strategic hub for Mexican businesses looking to expand in the region.

Q: Israel has successfully implemented a comprehensive water management strategy despite being in a semi-arid region. What key lessons from Israel’s approach could be adapted to countries like Mexico? 

A: Israel’s water management success is built on a combination of regulation, innovation, efficiency, and public awareness. One of the key lessons is strong regulation and centralized management. In Israel, water is considered a public resource, and its distribution is managed by a non-political national authority composed of experts, including engineers and scientists. There are no private wells, ensuring that water remains a shared national asset and is distributed equitably.

Other crucial factors are technology and innovation. Collaboration between the public and private sectors has driven advances in desalination, water purification, and wastewater recycling. Israel recycles 85% of its wastewater, primarily for agricultural irrigation, significantly reducing dependence on natural water sources. In addition, public awareness and a conservation culture play a vital role. Long-term education campaigns have instilled a strong sense of responsibility among Israeli citizens, promoting water conservation as a societal duty. People are encouraged to use water efficiently, recognizing its value and the need to preserve it for future generations.

By integrating these strategies, Israel transformed from a country facing severe water scarcity to one that now has surplus water and even exports it to neighboring nations. These lessons could be highly valuable for countries like Mexico, where water scarcity is an increasing concern.

Q: As concerns over microplastics, pharmaceuticals, and other contaminants in recycled water grow, how does Israel ensure the highest quality standards in its wastewater treatment processes? 

A: Israel ensures the highest quality standards through advanced technology, strict regulations, and continuous monitoring. One of the key technologies used is reverse osmosis membranes, which effectively remove not only salt but also contaminants such as microplastics and pharmaceutical residues from wastewater. Additionally, pre-treatment methods, including UV radiation and other innovative purification techniques, further enhance water quality before it is reused.

The national water authority enforces strict regulations, setting clear quality standards for recycled water. Companies responsible for treatment must comply with rigorous requirements as part of their contracts and undergo continuous oversight to ensure compliance.

Through this combination of cutting-edge technology, regulatory enforcement, and strict quality control, Israel guarantees that recycled water is safe for use, particularly in agriculture, while addressing growing concerns over contaminants.

Q: How is Israel leveraging technology and innovation to improve agricultural efficiency and water management in farming?

A: Israel is innovating in agriculture and irrigation through a combination of advanced technology, biotechnology, and collaboration between the government, private sector, and academia. Next-generation drip irrigation systems now deliver the exact amount of water and fertilizer each plant needs, optimizing resource efficiency. Additionally, drones and AI are used to monitor and analyze agricultural fields in real time.

Biotechnology has allowed for the development of more resilient seeds, capable of producing higher yields with less water and in smaller areas. Innovations are also being applied in the livestock industry to reduce water consumption in meat and dairy production.

The key to success lies in the coordination of regulation, technology, and science, enabling efficient water management in agriculture and livestock farming to address water scarcity challenges.

Q: How can businesses and government agencies in Mexico best leverage the relationship with Israel to implement effective water management solutions?

A: At the embassy, we are fully open to provide information and connecting stakeholders with Israeli solutions. Our commercial department offers a comprehensive catalog of companies specializing in water management, and we facilitate direct engagement with Israel’s water authority and experts. We have previously organized webinars and meetings and remain committed to collaborating with Mexican institutions, including CONAGUA and legislative bodies, to share proven best practices.

Q: What aspects of Israel’s model could be realistically implemented in Mexico to improve water management efficiency and sustainability?

A: Israel has become a global leader in water management, offering a wide range of innovative solutions, from leak prevention to advanced metering and efficient billing systems. In Israel, all water is publicly managed, and every user — whether residential or agricultural — must pay for consumption.

Water tariffs are standardized, professionally calculated, and designed to cover not just the cost of water but also infrastructure maintenance. This model ensures financial sustainability and incentivizes private sector participation. As a result, Israelis receive a constant supply of high-quality, potable tap water, eliminating the need for bottled water.

Q: Climate change is exacerbating water scarcity worldwide. How is Israel adapting its water strategy to deal with extreme weather events, prolonged droughts, and shifting precipitation patterns? 

A: Israel addresses water scarcity through a combination of regulation, energy efficiency, and sustainable water management. The country optimizes desalination by integrating renewable energy sources and utilizing natural gas to reduce environmental impact. Water recycling is a crucial strategy that allows Israel to preserve its natural freshwater resources and ensure long-term water security. Public awareness and education also play a key role, with government-led campaigns emphasizing responsible water consumption from an early age. Additionally, Israel invests heavily in infrastructure to prevent leaks and improve distribution efficiency, ensuring that water reaches every household and agricultural area with minimal waste. These combined efforts create a resilient water strategy capable of adapting to extreme weather events, prolonged droughts, and shifting precipitation patterns.

Q: What role does public-private collaboration play in advancing desalination technology?

A: Desalination has become more efficient thanks to public-private collaboration. Private sector investment drives innovation, efficiency, and accountability in projects, while the government provides regulation, oversight, and financial guarantees, creating a secure investment environment.

Additionally, technological advances have reduced energy consumption and environmental impact. The key is to diversify water sources by combining desalination, wastewater recycling, and freshwater conservation. Investments in education, science, and technology also play a crucial role in ensuring long-term water security.

Q: What technologies or best practices could Mexico adopt to improve its cybersecurity capabilities as risks become more common? 

A: Just like water, cybersecurity is a strategic issue that requires government involvement in research, regulation, and development. Collaboration between the government, private sector, and startups drives innovation and effective solutions. In Israel, the military also plays a key role in advancing cybersecurity, working alongside the government to develop intelligence and defense strategies.

Cybersecurity is crucial across all sectors, from water and finance to consumer data protection. A strong approach combines regulation, cooperation, and investment in education to ensure a skilled workforce capable of addressing future challenges.

Q: How can Mexico further strengthen partnerships with Israel to accelerate innovation in these critical sectors?

A: There are many investment opportunities in Mexico, particularly in water management, agriculture, healthcare, and cybersecurity. In the water and agricultural sectors, collaboration with entities like CONAGUA and local governments can bring Israel’s expertise in drip irrigation, advanced greenhouses, and fertilizers.

Mexico also has existing Israeli investments in the pharmaceutical industry, and cybersecurity remains a key area for future cooperation. The most important factor is collaboration between governments, private sectors, and educational institutions to share best practices and develop solutions. Water scarcity, climate change, and food security are global challenges that require joint efforts to ensure a sustainable and peaceful future for all.

Q: What can we expect for the future of bilateral relations between Mexico and Israel, particularly in the areas of trade, technology exchange, and water management?

A: Mexico and Israel have always maintained strong and close relations, collaborating not only in trade but also in academia, culture, and technology. There is significant potential to further leverage the existing free trade agreement to open new business opportunities and strengthen bilateral commerce.

Mexico can also benefit from Israel’s connections to markets in the Middle East and the European Union, while both nations can work together to modernize infrastructure and foster technological exchange. Given Mexico’s strong professional talent and Israel’s expertise in innovation, deeper cooperation would be mutually beneficial.

The Embassy of Israel in Mexico represents the State of Israel in Mexico. Both countries have over 70 years of diplomatic relations, which have included five presidential visits and numerous bilateral agreements. Mexico is Israel’s second-largest trading partner in Latin America, while Israel is Mexico’s most significant partner in the Middle East.

To explore Israel's innovation ecosystem, please contact Sivan Kfir Katz, Economic and Commercial Attaché, Head of the Economic and Trade Mission of Israel to Mexico. For inquiries regarding water solutions, please contact Kenjiro Juarez, Director of Business Development, via the Israel Economic Office to Mexico LinkedIn page and their personal profiles.