Volkswacht Bodensee - US Treasury targets network for fentanyl import

"Today, more people in the United States aged 18 to 49 die from fentanyl than from any other cause," Yellen told an event in Mexico City.

The latest sanctions take aim at 15 individuals and two entities affiliated with the Beltran Leyva Organization cartel, to disrupt the supply of fentanyl, a powerful synthetic opioid.

They include Oscar Manuel Gastelum Iribe and Pedro Inzunza Noriega, who are among the group's leadership, Treasury said.

The two companies, Editorial Mercado Ecuestre and Difaculsa, were found to be linked to the organization as well.

The cartel is one of the most powerful drug trafficking groups globally, and is "heavily involved in the transportation and distribution" of drugs like cocaine and fentanyl to the United States, Treasury added.

Yellen's trip comes after US President Joe Biden and Mexican President Andres Manuel Lopez Obrador pledged last month to work together to tackle the fentanyl crisis.

China is also taking action against illicit suppliers in the industry, following talks between Biden and Chinese President Xi Jinping.

Yellen said most precursor chemicals for illegally making the drug come from China and are synthesized in Mexico before the fentanyl is smuggled into the United States. She called the illicit drug trade a significant national security threat.

In a separate statement, Secretary of State Antony Blinken said the actions, taken in coordination with Mexico, "underscore the need for continued international cooperation."

- Infrastructure needs -

Yellen is set to meet central bank governor Victoria Rodriguez Wednesday and host a discussion on illicit finance with financial institution representatives.

She also met Mexican business executives as Washington renews a push to shift supply chains towards its trusted partners -- seeking greater stability amid economic and geopolitical tensions with China.

While Yellen told a roundtable with the executives that Mexico is "well-positioned" to gain from the move, dubbed "friend-shoring," she added that government efforts are also needed to attract investment.

This includes addressing issues of "adequate infrastructure and other public services."

This year, Mexico became the United States' largest trading partner in goods.

Matters that could arise during the trip also include strengthening Mexico's investment regime, to ensure investment in the country "doesn't become a channel for threats to US national security," Yellen earlier told reporters.

She is expected to meet President Lopez Obrador and Finance Minister Rogelio Ramirez de la O on Thursday.

C.Stoecklin--VB