Updated December 9, 2022
Trends in Mexican Opioid Trafficking and Implications for
U.S.-Mexico Security Cooperation
As a primary source of and transit country for illicit drugs
Figure 1. Opium Poppy Cultivation in Mexico
destined for the United States, Mexico is a key factor in
U.S. drug control policy. Included among the illicit drugs
produced in Mexico are heroin and fentanyl—substances
whose consumption is central to the epidemic of U.S.
opioid overdose deaths. As policymakers search for
solutions to the ongoing domestic opioid crisis, some
Member of Congress may seek to prioritize combating
opioids as an issue for U.S.-Mexico security cooperation.
U.S. Estimates of Mexican Opium Poppy
Cultivation and Heroin Production
Heroin is a highly addictive and internationally controlled
semi-synthetic opioid processed from morphine extracted
from certain types of opium poppy plants. Latin America
has featured as the main source of U.S.-consumed heroin in
recent decades. Although less than 10% of global opium
poppy cultivation occurs in Mexico, the majority of U.S.-
seized heroin originates in Mexico.
According to the U.S. Office of National Drug Control

Policy (ONDCP), Mexican opium poppy farmers cultivated
Source: “The Office of National Drug Control Policy Announces the
28,600 hectares in 2021 (up 23% compared with 2020),
2021 Estimate of Poppy Cultivation and Potential Heroin Production
resulting in an estimated 72 metric tons of potential pure
in Mexico,” May 27, 2022.
heroin (up 22% from 2020). In 2019, the most recent year
Illicit Fentanyl Production and
for which publicly available data are available, Mexican-
Trafficking Trends
sourced heroin accounted for 92% of the total weight of
Fentanyl is a synthetic opioid significantly more potent than
U.S.-seized heroin analyzed in the Drug Enforcement
heroin and approved for medical use as a painkiller and
Administration’s (DEA’s) Heroin Signature Program.
anesthetic. Licit fentanyl may be diverted through theft and
fraudulent prescriptions. Fentanyl and fentanyl-like
substances (i.e., analogues) also can be produced
clandestinely. At present, most U.S.-destined illicit fentanyl
appears to be produced clandestinely in Mexico, using
chemical inputs (i.e., precursors) from the People’s
Republic of China (PRC). India may also be a source of
precursors for fentanyl production in Mexico. Although
some fentanyl precursors are subject to international
controls, others may be produced and exported legally from
certain countries, such as China.
Mexican transnational criminal organizations (TCOs)—
particular the Sinaloa Cartel and Jalisco New Generation
Cartel (CJNG)—appear to be largely responsible for the
procurement of precursors from Asia (via maritime and air
ports of entry). TCOs also manufacture wholesale volumes
of low-purity illicit fentanyl in Mexico and control the
cross-border trafficking of fentanyl into the United States.
Domestically, U.S.-based TCO affiliates distribute illicit
fentanyl at the retail level.
According to the U.S. Commission on Combating Synthetic
Opioid Trafficking, Mexican TCO suppliers traffic illicit
fentanyl into the United States, primarily across the
https://crsreports.congress.gov

---

Trends in Mexican Opioid Trafficking and Implications for U.S.-Mexico Security Cooperation
southwestern border, by foot or passenger vehicle.
Regional Diplomacy on Illicit Drugs
Traffickers also reportedly transport illicit fentanyl by
Formal diplomatic mechanisms for counternarcotics policy
passenger boat, cargo ship, train, commercial plane, and
include the trilateral (Canada, Mexico, and the United
other modes of conveyance. While less frequently
States) North American Drug Dialogue and the bilateral
encountered by U.S. law enforcement, some synthetic
U.S.-Mexico High-Level Security Dialogue (HLSD). In
opioids are trafficked to U.S. consumers through the U.S.
August 2019, the U.S. and Mexican governments formed a
mail and express consignment carrier networks. Further
drug policy group within the broader HLSD. At the October
challenging interdiction efforts is the relatively small
2021 High-Level Security Dialogue, the United States and
amount of fentanyl (measured in terms of weight) that
Mexico announced a new “U.S.-Mexico Bicentennial
TCOs produce. Due to its high potency, substantially less
Framework for Security, Public Health, and Safe
fentanyl is required to meet U.S. illicit demand, compared
Communities.” Following the second HLSD in October
with heroin (as measured in morphine-equivalent doses).
2022, the two countries agreed to work toward finalize an
action plan focused on synthetic drugs, including fentanyl.
Money Laundering Trends
Opioid-related financial flows typically involve one or a
As part of the Bicentennial Framework, the U.S. and
combination of the following methods: (1) financial
Mexican governments established working-level
transfers involving banks, money services businesses, or
mechanisms to coordinate on synthetic drugs and precursor
online payment processors; (2) cryptocurrencies; and (3)
chemicals. Partially in response to U.S. pressure, Mexico
other traditional drug money laundering methods, such as
has been using data provided by the U.N. Office on Drugs
bulk cash smuggling and trade-based money laundering
and Crime to guide more of its poppy eradication efforts. In
(TBML). U.S. authorities have also emphasized a recent
2022, Mexico also expanded its “chemical watch list” for
trend involving Mexican TCO use of Chinese money
dual-use precursors from 14 to 72 substances—a move that
laundering organizations. Reported schemes indicate that
may spur opportunities for enhanced regional information
Chinese money laundering organizations use black-market
sharing and regulatory action targeting fentanyl precursors.
foreign currency exchange and TBML methods to repatriate
drug proceeds into the Mexican banking system.
Counternarcotics Foreign Assistance
Between FY2008 and FY2022, Congress appropriated $2.5
Mexican Efforts to Address Opioids
billion in International Narcotics Control and Law
In Mexico, the Prosecutor General’s Office (FGR) sets drug
Enforcement (INCLE) funds to assist Mexico with U.S.
policy. Although the Mexican Army has conducted drug
counternarcotics objectives. Congress provides additional
crop eradication since the 1930s, a key trend since President
counterdrug assistance to Mexico through annual Defense
Andrés Manuel López Obrador took office in 2018 has
appropriations. U.S. training and equipment have helped
been the expansion of the Mexican military’s role in drug
Mexico’s defense ministry seize fentanyl pills, and U.S.-
control and interdiction. In 2021, the Mexican Navy
trained canines have helped detect illicit fentanyl. In early
expanded its role to cover customs and security duties at
2022, the State Department completed a donation of
Mexico’s seaports and airports, while the Mexican Army
multiple custom high-hazard protective equipment kits for
assumed similar control over land ports. Mexico’s National
the safe dismantlement of clandestine synthetic drug
Guard, a gendarmerie created in 2019, also plays a role in
laboratories. The State Department has also donated gas
the detection and seizure of precursors and clandestine
chromatography and specialized mass spectrometer
laboratories.
equipment to FGR for improved analysis of the
composition of seized drugs.
While the López Obrador administration initially prioritized
interdiction of cocaine and methamphetamine, drugs
Sanctions Targeting Mexican TCOs and Kingpins
commonly abused in Mexico, they have begun to prioritize
In December 2021, the Biden Administration issued
fentanyl and related precursor seizures. According to FGR
Executive Order (E.O.) 14059, Imposing Sanctions on
data, fentanyl seizures increased fourfold from 2019 to
Foreign Persons Involved in the Global Illicit Drug Trade,
2021. Mexican officials had long maintained that fentanyl
which built upon existing sanctions programs that block
transited through the country, but that Mexican traffickers
assets within U.S. jurisdiction, prohibit U.S. persons from
did not produce fentanyl. This position has shifted after
financial transactions with sanctioned foreign narcotics
years of U.S.-Mexican antidrug cooperation revealed
traffickers, and ban such traffickers from entry into the
increasing diversion of chemical precursors for synthetic
United States. Mexican TCOs feature prominently on U.S.
opioid production and clandestine fentanyl labs in Mexico.
sanctions lists, including Sinaloa and CJNG, which were
sanctioned in 2009 and 2015, respectively, pursuant to the
U.S. Counterdrug Policy Approach
Foreign Narcotics Kingpin Designation Act (Title VIII, P.L.
In April 2022, the Biden Administration released its first
106-120). Those TCOs were also sanctioned in 2021 under
National Drug Control Strategy. The Administration’s
E.O. 14059. In November 2022, the U.S. Department of the
international supply reduction goals include prioritizing
Treasury sanctioned La Nueva Familia Michoana and its
bilateral engagement with key drug source and transit
leaders pursuant to E.O. 14059. This Mexican TCO is
countries, such as Mexico, as well as disrupting TCO illicit
reportedly implicated in a mix of criminal and drug
financial activities—including those of Sinaloa and CJNG.
trafficking activities, including the cultivation of opium
poppy and U.S. distribution of heroin and, in an emerging
trend, “rainbow” fentanyl (pills and powders whose bright
colors, shapes, and sizes are marketed to young users).
https://crsreports.congress.gov

---

Trends in Mexican Opioid Trafficking and Implications for U.S.-Mexico Security Cooperation
Outlook for the 118th Congress
policy priorities in the bilateral relationship. For more on
Foreign assistance funding through annual State, Foreign
the broader U.S.-Mexico relationship, see CRS In Focus
Operations, and Related Programs (SFOPS) and Defense
IF10578, U.S.-Mexico Security Cooperation: From the
Appropriations Acts, as well as related oversight reporting
Mérida Initiative to the Bicentennial Framework.
requirements, are two key mechanisms through which
Congress exerts its counternarcotics policy interests with
Liana W. Rosen, Specialist in International Crime and
respect to Mexico. Mexico’s role in synthetic opioid
Narcotics
production and trafficking has also been the subject of
Clare Ribando Seelke, Specialist in Latin American
congressional hearings.
Affairs
As Congress reviews recent efforts and considers additional
IF10400
policy options to address illicit opioids sourced in Mexico,
counternarcotics progress may be constrained by other


Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF10400 · VERSION 10 · UPDATED

---