Criminal extortion of companies in Mexico is not new, but it has increased during the López Obrador administration, during which the cartels have enjoyed almost total impunity. This situation also affects transporters, who are forced to pay criminal taxes on the roads.
If Mexican cartels are designated as "terrorists," several national and foreign companies in Mexico could face lawsuits, similar to what happened to Chiquita Brands International in 2011. Some food companies have had to make payments to criminal organizations to operate in certain areas of the country, while others have had to temporarily suspend their activities after refusing to be extorted.
The decision to designate the cartels as terrorist organizations could bring complications for Mexico, its companies, investments, and employment. The deadline for the U.S. Department of State to recommend whether the cartels should be considered "Foreign Terrorist Organizations" is 14 days.
It has been pointed out that the law regulating this action is broad, which could even lead to former President López Obrador being subject to this designation. Some companies, apparently unrelated to the cartels, could be used to send remittances that serve for money laundering.
President Claudia Sheinbaum has responded cautiously to Trump's instruction, acknowledging that the United States has the right to act within its territory. However, this decision underscores a profound institutional weakness in Mexico.
The possible designation of the cartels as terrorist organizations has raised concerns regarding national security and economic implications. American companies have reported loss of control over their operations, extortion, and payment demands from the cartels. Experts indicate that any financial or logistical support to the cartels could be considered as aid to a terrorist group.
Trump's executive order cannot be seen solely as a sovereign decision, as it could have strong economic repercussions in Mexico. Operating in high-risk areas would become a challenge for many companies, and any financial institution in the U.S. handling funds related to designated terrorist organizations would be violating the law.
Although it is still unclear whether the cartels will be officially considered terrorists, the possibility has generated international debate and raised concerns in various sectors.
