US legislation stipulates that providing material support to criminal organizations can lead to the confiscation of assets, criminal charges, and substantial fines. US companies and multinationals operating in various areas of Mexico often pay extortion and other bribes to individuals linked to the cartels to produce, transport, and sell goods.
President Donald Trump requested the State Department to designate Mexican cartels as "foreign terrorist organizations" in order to expand the enforcement of US law against these groups, although this move could complicate international relations, restrict asylum requests, and strain ties with Mexico, analysts point out.
Analysts interviewed by Reuters noted that the designation could complicate trade and regulatory compliance, but the effective prosecution of companies for paying extortion is uncertain. A study by the American Chamber of Commerce in Mexico showed that organized crime influences business operations, demanding protection payments and controlling sales aspects.
The designation as terrorist organizations could also impact money transfer companies operating in cartel-controlled areas, making their regulatory compliance more challenging. The initial push for this designation arose from Trump's promise to combat Mexican cartels amid the fentanyl crisis in American communities.
A relevant aspect of this measure is the increase in influence over the Mexican political class by prosecuting people in positions of power in Mexico. Mexico has expressed its opposition, arguing that cartels do not seek political ends but rather profit. Claudia Sheinbaum mentioned the need to work together while respecting Mexican sovereignty in the fight against cartels.
The designation could also impact trade and asylum applications from migrants, as fleeing from US-designated terrorist organizations could strengthen those requests. Experts commented that while the designation does not allow military actions in Mexico, it could serve as a basis for some form of military intervention.
In summary, Trump's request to designate Mexican cartels as foreign terrorist organizations poses challenges in international relations, trade, and regulatory compliance, generating debate on how to address the issue of organized crime in the region.
