New US Fentanyl Approach Could Lead to New Sanctions, Trade Restrictions

The White House this week announced a new “whole-of-government approach” to tackle illegal fentanyl trafficking, including plans to impose more sanctions against drug traffickers and prevent them from accessing American raw materials and technology.

As part of the approach, the Biden administration said it plans to “expand its efforts to disrupt the illicit financial activities” of drug traffickers by “increasing accountability measures, including financial sanctions.” The sanctions will “obstruct drug traffickers’ access to the U.S. financial system and illicit financial flows.” The White House said it plans to coordinate these measures with U.S. allies.

Another effort could lead to new U.S. trade restrictions. The administration said it plans to limit traffickers from accessing certain U.S. goods and resources by working closer with “international and domestic express consignment carriers to interdict more illicit substances and production materials.” It also plans to “educate companies on safeguarding against the sale and distribution” of dual-use chemicals and equipment used to produce illegal fentanyl.

Drug traffickers often use “legitimate” businesses to access “significant capital resources, collaborate with raw material suppliers across international borders, use technology to fund and conduct business,” the White House said, “and innovate production and distribution strategies to expand their markets.” Bureau of Industry and Security Undersecretary Alan Estevez said in March the agency was considering new export controls on certain machinery or lab equipment used by Chinese suppliers of precursor chemicals, which are used to produce fentanyl (see 2302280069).