Julio Almanza, the head of a Mexican business chambers’ federation in Tamaulipas state, was tragically killed outside his offices in Matamoros, Mexico. This incident occurred just hours after he spoke out against drug cartel extortion in the state. Almanza highlighted the pervasive issue of extortion demands, stating that it had become a common practice in Tamaulipas. He emphasized the challenges faced by businesses, including demands from drug cartels to control the sale, distribution, and pricing of various goods.
The impact of cartel extortion extends beyond small businesses, affecting even major corporations like Femsa, which operates Mexico’s largest chain of convenience stores, Oxxo. Femsa recently announced the closure of its stores and gas stations in Nuevo Laredo due to gang-related problems. The company had been facing demands from cartels to purchase fuel from specific distributors, leading to escalating threats and violence against its employees.
The violence and intimidation tactics employed by drug cartels are not limited to businesses in Mexico. The American Chamber of Commerce reported that organized crime has exerted partial control over the sales, distribution, and pricing of goods for some of its members. This interference distorts Mexico’s economy, with cartels dictating who can sell products and at what prices. Companies are forced to allocate significant portions of their budgets to security measures to protect against attacks and extortion demands.
The expansion of cartel activities includes taking over legitimate businesses and extorting money from companies across various industries. Cartels have been implicated in controlling the production and pricing of agricultural products like avocados and limes. They have also engaged in fraudulent schemes targeting Americans, such as timeshare fraud orchestrated by the Jalisco New Generation cartel.
In response to these challenges, companies like Femsa are engaging in discussions with authorities to ensure the safety of their employees and resume operations in affected areas. The broader implications of cartel activities on businesses, both in Mexico and internationally, underscore the need for comprehensive strategies to combat organized crime and protect economic interests.
As drug cartels continue to expand their influence and resort to increasingly sophisticated tactics, the need for coordinated efforts between businesses, law enforcement agencies, and government authorities becomes more urgent. Addressing the root causes of cartel violence and extortion requires a multifaceted approach that prioritizes security, transparency, and accountability in order to safeguard businesses and communities from criminal threats.
