The Drug Trade in Mexico Adrien A. Lopez & Esby Rosas Economics 465 Professor Castillo

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Mexican Drug Cartels  The Sinaloa Cartel  The Juarez Cartel  The Tijuana Cartel  The Gulf Cartel  Los Zetas-an informal paramilitary regime that battles the above cartels for their own drug smuggling.  Their tactics include:  Kidnappings  Assassinations  Money Washing/ Laundering  Drug and Human Trafficking/ Smuggling

The Arellano Felix Cartel  Also known as the Tijuana Cartel  Located in Baja California  Founding leader is Ramon Arellano Felix died February 10, 2002 in a gunfight with Mexican Authorities  Traffic

Cartels and Pop-Culture  Narco-Corridos  Fashion  Automobiles  Laura Zuniga, Miss Sinaloa 2008 was arrested in the state of Jalisco, with illegal possession of firearms.  Former School Teacher

Current Drug History  90% of cocaine entering the United States passes through Mexico  Mexican Cartels launder between $18 Billion to $39 Billion Dollars Annually  20% of Sinaloa’s GDP is drug related

Mexican Drug Informality  60,000 suspicious transactions in a 12- month period…  Only 300 of these transactions go through litigation  Banking controls are laxed  Inefficient Legal System due to the consequential life threatening fear

Drug Related Deaths January 1, December 19, 2008  Chihuahua- 1,725  Sinaloa- 989  Baja California- 741  Districto Federal- 461  Jalisco- 224  Nayarit- 6  Campeche- 5  Greater deaths coincide with close proximity to United States/Mexico Border

Reasons for Drug Trade Illegal immigration continually dropping

Reasons Continued  Decrease in remittances  18% of population live in poverty  Income distribution

Reasons Continued  Higher wages then formal jobs  YearUnemployment rate (%)      

Reasons Continued  Crimes viewed as local and not Federal  High corruption within legal system

Reactions to Increased Drug Trade and Violence  U.S has issued a travel warning  Canada has also issued a travel warning  Tourism brought in $13.29 billion in 2008

Distribution of Mexico's $1.143 Trillion GDP 62.2% 34.1%

Reactions to Increased Drug Trade and Violence Cont.  President Calderon dispatched 5,000 additional soldiers to most violent areas  Cleaning offices  Business owners, journalists, other potential targets seeking U.S asylum

Currently in Mexico  Legal reform  Price of drugs have doubled  Battle still ongoing...