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 US 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.”
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 US 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.”
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For more information, contact:
Anne Kothawala
President and CEO
(647) 242-3560 or [email protected]
