Biden’s tobacco policy good for cartels’ health

In a commendable move, Republican Sens. Bill Cassidy of Louisiana, Marco Rubio and Rick Scott of Florida, Tom Cotton of Arkansas and Bill Hagerty of Tennessee are urging the U.S. Treasury Department to take immediate measures against Tobacco International Holdings, a Switzerland-registered business suspected of having ties to Mexico’s Cártel de Jalisco Nueva Generación.

The senators’ request for sanctions is rooted in welldocumented evidence the cartel has used tobacco products as an alternative revenue stream since 2018. Mexico’s Financial Intelligence Unit has already initiated an investigation into Tobacco International Holdings,

suspecting its association with the cartel. Reports indicate Tobacco International Holdings, with assistance from current and former Mexican government officials, has successfully monopolized the tobacco market in several Mexican states, backed by the ominous threat of cartel reprisals.

This request for sanctions is a crucial step toward dismantling the cartel’s financial network and safeguarding American communities from the perils of illicit drug trade.

The gravity of this issue cannot be overstated. By diversifying their income streams, cartels can sustain and expand their illicit operations, fueling violence and instability on both sides of the border. The negative impact of cartel activity doesn’t just impact the border region. Illicit fentanyl, a highly potent synthetic opioid that is 50 to 100 times more potent than morphine, has been a major factor in the increase of overdose deaths in the United States. More than 150 Americans die every day from overdoses related to synthetic opioids such as fentanyl, according to the Centers for Disease Control and Prevention.

While sanctioning Tobacco International Holdings and related entities will effectively disrupt the cartel’s revenue generation, it is just a small part of the larger problem of illicit cartel activity. Unfortunately, tobacco policies the Biden administration is considering may inadvertently expand the illicit tobacco marketplace, thereby providing a new platform and increased funding for cartels.

First, President Joe Biden’s expected menthol ban would remove menthol cigarettes from the marketplace. Thirty-nine percent of the 30 million smokers in the United States report using menthol cigarettes. If even a fraction of these smokers resort to obtaining menthol products through illicit means, it will become a substantial source of revenue for cartels operating on the black market. Even before this policy goes into effect, an estimated 8 to 21 percent of cigarettes consumed in the United States are purchased illicitly, which translates to billions of dollars in revenue a year.

While smoking cigarettes undeniably carries significant health risks, funneling business and cash into the hands of cartels by means of an illicit market poses a dire national security threat to all Americans.

Addressing the issue of cartels and their funding necessitates a comprehensive approach. While the call to sanction Tobacco International Holdings, its principals, subsidiaries and affiliates demonstrates a firm commitment to protecting American communities, it is equally essential to carefully evaluate the administration’s tobacco policies to prevent inadvertently fueling the cartels’ other drug-trafficking efforts.

Combating drug trafficking requires proactive measures that encompass both targeted sanctions against entities like Tobacco International Holdings, as well as prudent tobacco policies. The urgent request for sanctions against Tobacco International Holdings will help dismantle the cartel’s operations by disrupting their financial network. By aligning a comprehensive strategy with effective tobacco policies, policymakers can contribute significantly to the protection and well-being of American communities.