In a move that significantly escalates the fight against organized crime, President Donald Trump’s administration officially designated eight Latin American criminal organizations as Foreign Terrorist Organizations (FTOs). This unprecedented decision, which follows an executive order signed by Trump on January 20, targets groups such as Venezuela’s Tren de Aragua, El Salvador’s Mara Salvatrucha and Mexico’s Cartel del Golgo and Cartel del Noreste, Cártel de Jalisco Nueva Generación, Nueva Famiia Michoacana and Carteles Unidos,
This designation carries profound legal and economic consequences, not only for the U.S. and Mexico but also for global financial institutions and trade networks. The measure, formally published in the Federal Register, aligns with Trump’s hardline stance on border security, deportations, and military presence at the U.S.-Mexico border. However, it has sparked debates over its broader implications, including potential disruptions in trade and diplomatic relations.
Labeling these criminal organizations as FTOs expands the U.S. government’s legal framework to combat them. The designation enables:
- Freezing of Assets: The U.S. government can seize financial assets linked to these groups, including those in U.S.-based banks.
- Legal Prosecution: Providing material support to these groups, knowingly or unknowingly, can lead to severe federal charges.
- Sanctions on Businesses and Individuals: Banks, corporations, and individuals found engaging in transactions with these organizations risk economic sanctions and legal action.
- Deportation and Visa Restrictions: Non-U.S. citizens linked to these groups could face immediate deportation or travel bans.
The U.S. has previously designated groups such as Al-Qaeda, ISIS, Hezbollah, and the Revolutionary Armed Forces of Colombia (FARC) as Foreign Terrorist Organizations. In each case, the consequences have included:
- Military Intervention: In some instances, such as against ISIS, the designation justified military action.
- Economic Isolation: Countries and businesses associated with these groups faced economic sanctions and trade restrictions.
- Increased Law Enforcement Measures: Governments worldwide implemented stricter monitoring of financial transactions to curb funding to terrorist groups.
For example, after FARC was designated a terrorist organization, financial institutions globally restricted transactions linked to Colombia, affecting even legitimate businesses. The question now is whether Mexican and Latin American economies will face similar repercussions.
Mexico’s Reaction: Sovereignty and Cooperation
Mexican President Claudia Sheinbaum responded firmly to Trump’s executive order, emphasizing Mexico’s sovereignty:
“Everyone wants to fight drug cartels. They will do so on their territory, and we will do so on ours.”
Sheinbaum expressed openness to increased collaboration on money laundering investigations, which she called “essential.” However, she rejected any extraterritorial enforcement, signaling that Mexico will not allow U.S. military operations against cartels within its borders.
The Mexican media has been divided on the issue:
- Pro-Government Outlets highlight the risk of U.S. overreach and potential threats to Mexican sovereignty.
- Conservative Voices argue that the designation forces Mexico to take a stronger stance against cartels, which have infiltrated various sectors of society.
- Business Leaders worry about the unintended economic consequences, such as disruptions in the avocado and automotive industries, which have seen cartel involvement.
Cartels have deeply infiltrated legitimate industries. For instance, Mexico’s avocado trade, valued at billions of dollars annually, is influenced by organized crime. If the U.S. enforces strict financial sanctions, companies may hesitate to conduct business with Mexican suppliers, fearing inadvertent legal violations.
Trump’s broader immigration strategy, including mass deportations and troop deployments at the border, aligns with this terrorist designation. However, immigration advocates warn that labeling cartels as FTOs could lead to:
- Increased asylum claims, as migrants may argue they are fleeing “terrorist-controlled” areas.
- Stricter border enforcement, making legal crossings more difficult for migrants and businesses alike.
Military analysts warn that the terrorist designation could justify future U.S. military action against cartels. Some experts argue:
- General Mark Hertling, Retired U.S. Army Commander: “Cartels operate differently than traditional terrorist groups. A military response could escalate violence without addressing the root causes.”
- John P. Sullivan, Security Analyst: “This designation brings intelligence-sharing advantages, but the cartels’ decentralized nature makes them harder to dismantle compared to ISIS.”
- Dr. Vanda Felbab-Brown, Brookings Institution: “We risk creating a counterinsurgency-style conflict in Mexico if military measures are prioritized over financial intelligence and law enforcement collaboration.”
Trump’s decision to designate Latin American cartels as terrorist organizations is a historic and controversial escalation in the fight against organized crime. While it enhances the U.S.’s ability to freeze assets and prosecute supporters, it also risks economic disruptions, strained U.S.-Mexico relations, and potential military entanglements.
As the global community watches, the long-term effects of this policy will depend on whether it leads to better international cooperation against organized crime or deepens the divide between the U.S. and Latin America.
Trump vs. Mexico: The Impact of Cartel Claims and Trade Tariffs on U.S. Latinos
