Trade Deals and Cartel Violence

Updated: 2026.01.12 16D ago 1 sources
Cross‑border trade liberalization can unintentionally raise trafficking profits along newly efficient transport corridors, driving lethal cartel competition in connecting municipalities. Empirical comparisons of homicide trends on predicted least‑cost trafficking routes before and after a trade agreement (NAFTA) show substantive increases in drug‑related killings localized to those corridors. — This reframes trade policy as also a security policy: negotiators and implementers must weigh how reduced frictions and new routes alter illicit markets and local violence, and coordinate trade liberalization with targeted law‑enforcement, customs, and development measures.

Sources

The downside of NAFTA?
Tyler Cowen 2026.01.12 100% relevant
JDE paper by Hidalgo, Horning, and Selaya, as summarized by Tyler Cowen, which estimates a +2.1 per 100,000 increase in homicides along least‑cost routes linking historical trafficking nodes to U.S. ports after NAFTA (26% of the pre‑NAFTA mean).
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