Portugal Colonial - US targets network for fentanyl import as Yellen visits Mexico

"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 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.

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

- Infrastructure needs -

Yellen met central bank governor Victoria Rodriguez Wednesday and hosted 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.

While Yellen told a roundtable of 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.

She acknowledged on the sidelines of the trip that she has heard discussions and concerns about infrastructure, such as water and energy supplies, when it comes to investing in Mexico.

On expectations of future Federal Reserve interest rate cuts, she said "markets anticipate future Fed moves based on their readings of incoming data."

This can be a "complement to monetary policy," she added, noting the Fed will act as it deems appropriate while the state of markets feeds into that.

On the trip, Yellen also is expected to discuss Mexico's investment regime, to ensure investment in the country "doesn't become a channel for threats to US national security."

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

E.Paulino--PC