With containerized seaborne trade constituting a whopping 90% of global trade, it’s no surprise that over 500 million units are shipped each year. However, the shocking truth revealed by the United Nations Office on Drugs and Crime (UNODC) is that fewer than 2% of these shipments are actually inspected. This alarming statistic sheds light on the crucial role that ports play in enabling illicit trafficking.
The Center for Strategic and International Studies (CSIS) has recently sounded the alarm on the escalation of Chinese-operated ports in Latin America. The implications are dire, as the influx of Chinese-controlled ports raises concerns about the proliferation of criminal networks, smuggling of illicit goods, and other nefarious activities.
Below are some key points highlighted in the report and surrounding discussions:
- The expansion of global markets has paved the way for transnational criminal organizations (TCOs) to use ports as a means to conceal illegal products within legal shipments. Trade agreements between China and Latin America further fuel this scheme by facilitating the movement of large volumes of legal goods back and forth.
- Chinese investment in the infrastructure of Latin American ports contributes to an environment of opacity, fostering corruption and bribery which are essential for criminal organizations to exploit these ports. This lack of transparency poses a significant vulnerability for countries in the region, as seen in the case of the Chinese base in Argentina operating with high levels of secrecy.
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Ports such as Lázaro Cárdenas in Mexico and Chancay in Peru have become focal points for drug trafficking and other criminal activities. The Jalisco New Generation Cartel (CJNG) utilizes Lázaro Cárdenas for drug trafficking activities, including the smuggling of precursor chemicals from China for the production of fentanyl and methamphetamines.
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Notably, the Sinaloa Cartel has operations in various countries, including China, where it sources precursor chemicals for drugs. The Port of Chancay in Peru has been identified as a potential hub for cocaine and fentanyl trafficking between South America and Asia, underlining the critical role that these ports play in transnational crime.
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The rise of Chinese migrants entering Mexico illegally through Pacific ports has raised concerns about human trafficking and the endangered totoaba fish trafficking, a species prized in China for its swim bladder.
As China strengthens its presence in Latin America through logistics networks and affordable port technology offerings, the region faces mounting concerns about information security. The accessibility of Chinese equipment, even on credit, raises red flags about potential data collection in sensitive areas like customs.
In light of these alarming trends, a collaborative effort at the international level is essential to address the risks posed by the proliferation of Chinese-operated ports in Latin America. Enhanced scrutiny, transparency, and cooperation among nations are imperative to combat the threats posed by criminal networks utilizing these ports for illicit activities. It is crucial to prioritize the security and integrity of global trade networks to safeguard against the exploitation by criminal elements.
