CICC commends Ontario government action on contraband tobacco
The Convenience Industry Council of Canada (CICC) applauds today’s announcement on Fortress Am-Can, a renewed strategic alliance between Canada and the United States, specifically a commitment to strengthen Canada’s border with the U.S. by cracking down on the cross-border trade of illicit goods including contraband tobacco.
“The reality is contraband costs us all,” said CICC president and CEO Anne Kothawala. “We commend the Ontario Government for listening to our call for action and demonstrating its leadership by focusing on the growing contraband tobacco problem which is directly funding organized criminal activity and cross-border smuggling networks.”
One of the goals of Fortress Am-Can, along with Ontario’s recently launched Operation Deterrence preparedness and planning framework, is to stem the cross-border flow of illegal guns, contraband tobacco and illegal drugs like fentanyl. This should include increased permanent funding for increased oversight and support at the border and enhanced tools for law enforcement, as well as investments to expand cross-border coordination and operations between American and Canadian security and policing agencies.
READ: CICC releases new study on contraband tobacco in Canada
Contraband tobacco is eight times more profitable than the illicit drug trade.
According to the Canada Border Services Agency (CBSA), between January and October 31, 2024, more than 1.7 million kilograms of illegal tobacco were seized at ports of entry in Southern Ontario. That’s equivalent to 116, 53-foot tractor trailer loads full of tobacco.
“That’s just the tip of the iceberg,” added Kothawala. “That number is estimated to account for only 20% of the total contraband tobacco that flows from the U.S. into Canada. This demonstrates that the Americans are fueling the illegal manufacturing of cigarettes in Canada, which is why the province’s multi-jurisdictional approach is necessary.”
CICC has been working with the Ontario Government on battling the contraband issue for years, but a 2023 EY Canada Report on the scale and scope of the illicit tobacco market in Canada’s largest province forced a new and urgent call to action.
“As the EY Report pointed out, contraband cigarettes account for almost half the tobacco market in Ontario which is the main manufacturing and distribution hub for this growing pan-Canadian problem,” added Kothawala. “Today’s announcement will equip authorities the much-needed tools stop the cross-border flow of illicit tobacco which will result in safer communities across the country.”
