Embassy of the United States Ottawa, Canada

I. Summary

In 2009, Canada demonstrated continuing resolve to implement its National Anti-Drug Strategy, to reduce the supply of and demand for illicit drugs as well as associated crime. However, as in years prior, Canada remains a significant source for MDMA (3, 4-methylenedioxymethamphetamine, or Ecstasy) and marijuana that are entering the U.S. market. Canada's continued enforcement efforts have reduced large scale diversion of bulk precursor chemicals across the border, but trafficking of marijuana and Ecstasy continues at high levels. In July, Canadian law enforcement authorities made one of the largest heroin seizures in Canadian history. While Canada maintains an active demand reduction effort, local and provincial authorities continue to include a drug injection site and distribution of drug paraphernalia to chronic users as part of their "harm-reduction" programs. The federal government continues to deliver a sharp message against these programs, which is in line with the International Narcotics Control Board's recommendation for the Government of Canada to eliminate drug injection sites and drug paraphernalia distribution programs because they violate international drug control treaties. Canada and the U.S. cooperate in counternarcotics efforts through increased information sharing and joint operations. Canada is a member of the UN Commission on Narcotic Drugs and party to the 1988 UN Drug Convention.

II. Status of Country

Canada has a sophisticated and well-educated population and a high-tech economy, which provides criminal entities with technical capabilities that require the law enforcement community to utilize specialized investigative techniques. Canada's highly developed economy and its relatively high standard of living contribute to Canada's status as a significant consumer as well as producer of illicit narcotics. Canada produces significant amounts of methamphetamine and marijuana and is a major source for Ecstasy to U.S. markets. It is also a transit or diversion point for precursor chemicals such as methamphetamine, used to produce illicit synthetic drugs (notably Ecstasy). The illegal drug industry's production and distribution capabilities are sophisticated and diverse.

III. Country Actions Against Drugs in 2009

Policy Initiatives: In August, Canada announced the Synthetic Drug Initiative (SDI), the first Canadian drug strategy to focus on a single class of drugs. Though this initiative is still in the "strategic concept" phase, the Royal Canadian Mounted Police (RCMP) are developing the program with an eventual goal of eliminating illegal synthetic drug production and distribution in Canada and reducing the overall influence of organized crime on drug trafficking in Canada. SDI will target the illicit synthetic drug industry on three fronts: enforcement, deterrence, and prevention. It also aims to inhibit the diversion of precursor chemicals from foreign and domestic sources. The RCMP will pay for the SDI through National Anti-Drug Strategy funds and by re-allocating existing resources. The RCMP has not announced a budget for SDI, but has said that funds will be allocated to domestic and international programs, including modernizing the RCMP's chemical diversion program, hiring new personnel, and improving training and awareness initiatives.

In June, the House of Commons passed new legislation (Bill C-15) on mandatory minimum penalties for serious drug offenders. As of December, the bill remains under consideration by the Senate. Bill C-15 provides mandatory one and two-year minimum jail sentences for various offenses including production, trafficking, possession for the purposes of trafficking, importing and exporting, and possession for the purposes of exporting of illegal drugs. The bill also provides for additional, aggravated penalties when offenses are carried out for organized crime purposes or if they involve selling drugs to young people.

Accomplishments. In 2009, Canadian and U.S. law enforcement agencies' bilateral efforts resulted in significant interdictions of narcotics arriving in Canada and the U.S. by air, passenger vehicle, truck, small aircraft, and ship, as well as seizures from Canadian drug production operations. Seized drugs included marijuana, cocaine, heroin, methamphetamine, hashish, and Ecstasy.

During February and March 2009, a coordinated effort by the Drug Enforcement Administration (DEA), RCMP, and U.S. federal and local law enforcement agencies led to the arrest of nine individuals and the seizure of 750 pounds of marijuana, over 80 kilograms of cocaine, 240,000 tablets of Ecstasy, six weapons, and two helicopters. The targeted drug trafficking organization used the helicopters to cross into the U.S. with Canadian-sourced marijuana and Ecstasy in exchange for cocaine destined for Canada. This organization was also linked to numerous marijuana indoor grow operations and a clandestine laboratory, which British Columbia provincial authorities seized in June 2008, and which held more than 1 million Ecstasy pills and 168 kilograms of Ecstasy powder.

On April 2, 2009, Border Patrol agents in Sumas, Washington discovered 126 pounds or nearly 200,000 doses of Ecstasy valued at nearly $2.5 million.

On July 7, 2009, CBP Officers at the Peace Arch Port of Entry in Blaine, WA seized 80.64 kilograms of cocaine and 27.59 kilograms of heroin concealed in a passenger vehicle during an outbound inspection.

Also in July, in a joint operation in the greater Toronto area (GTA), the Canadian Border Service Agency (CBSA), RCMP, Toronto Police, and Peel Regional Police seized 117 kilograms of heroin, with an estimated street value of $100 million, and more than $600,000 in cash, making it one of the largest heroin seizures in Canadian history.

Law Enforcement Efforts: 2009 law enforcement efforts continued previous trends of joint drug enforcement efforts against steady but diverse distribution patterns of traffickers. Notably, authorities have identified and dealt with failures in information-sharing among Canadian law enforcement agencies that had hampered some counternarcotics enforcement efforts. An RCMP report in 2008 revealed that more than 60 employees at Canada's eight largest airports had criminal links. On March 31, Transport Minister John Baird ordered his department to fix persistent gaps in airport employee screening after Canada's Auditor General also found that "high-risk" criminals were still able to obtain security clearances at Canadian airports due to the failure of Transport Canada and the RCMP to share data. On April 8, the two agencies signed a new information-sharing agreement to conduct expanded criminal background checks for workers with access to secure areas at Canada's airports.

Canadian officials report unofficially that most of the Ecstasy laboratories dismantled in Canada in 2009 were capable of producing multi-kilogram quantities. During 2008, the RCMP dismantled15 Ecstasy laboratories, all of which were capable of producing multi-kilogram quantities, as well as 17 methamphetamine labs, 13 of which had a multi-kilogram capability.

Corruption: As a matter of government policy, Canada neither encourages nor facilitates illicit production or distribution of narcotic or psychotropic drugs or other controlled substances, or the laundering of proceeds from illegal drug transactions. No senior government officials are known to engage in, encourage, or facilitate the illicit production or distribution of narcotic or psychotropic drugs or other controlled substances, or the laundering of proceeds from illegal drug transactions. Canada has strong anticorruption controls in place and holds its officials and law enforcement personnel to a high standard of conduct. Civil servants found to be engaged in malfeasance of any kind are subject to prosecution. Investigations into accusations of wrongdoing and corruption by civil servants are thorough and credible.

Agreements and Treaties: Canada is party to the 1988 UN Drug Convention, the 1971 UN Convention on Psychotropic Substances, and the 1961 UN Single Convention as amended by the 1972 Protocol. Canada is a party to the UN Convention against Corruption and to the UN Convention Against Transnational Organized Crime and its protocols against migrant smuggling and trafficking in persons. Canada is also a party to: the Inter-American Convention on Mutual Legal Assistance in Criminal Matters; the Inter-American Convention against the Illicit Manufacturing of and Trafficking in Firearms, Ammunition, Explosives and Other Related Materials; and, the Inter-American Convention Against Corruption. Canada actively cooperates with international partners. The U.S. and Canada exchange forfeited assets through a bilateral asset-sharing agreement, and exchange information to prevent, investigate, and prosecute any offense against U.S. or Canadian customs laws through a Customs Mutual Assistance Agreement. Canada has in force 50 bilateral mutual legal assistance treaties and 66 extradition treaties. Judicial assistance and extradition matters between the U.S. and Canada operate under a mutual legal assistance treaty (MLAT), an extradition treaty, and related protocols, including the long-standing Memorandum of Understanding designating DEA and RCMP as points of contact for U.S.-Canada drug-related matters. Unfortunately, the process for executing extradition and MLAT requests is very slow in Canada (e.g., extraditions from Canada can take three years or more on average), and this has impacted U.S. law enforcement's ability to move as quickly and effectively as possible.

Cultivation/Production: Illicit narcotics are predominantly produced by organized crime organizations and gangs, composed of Canadians of East Asian origin (ethnic Vietnamese and Chinese), outlaw motorcycle gangs, and Indo-Canadian criminal groups. Large-scale marijuana cultivation exists in Canada, primarily for consumption in the domestic market. Growers use technologically-advanced organic methods. Large-scale marijuana grow operations are primarily located in British Columbia, Ontario, and Quebec provinces. Large profits from marijuana production in Canada have allowed traffickers to expand their involvement into other profitable illicit cross-border drug activities, such as expanding Ecstasy and methamphetamine production.

Organized crime dominates the methamphetamine trade, operating large-scale methamphetamine labs capable of producing at least 10 pounds of methamphetamine per cycle throughout the country. According to the 2009Annual Report on Organized Crime prepared by Criminal Intelligence Service Canada (CISC), organized crime groups in Canada conduct large-scale Ecstasy production and distribution operations to supply the domestic market, and Canada remains one of the top producers of ecstasy to the global illicit drug market. Precursor chemicals for the production of ecstasy are smuggled into Canada from source countries such as China and India on a regular basis.

Drug Flow/Transit: The CISC's 2009 Annual Report on Organized Crime in Canada estimated that there were approximately 750 organized crime groups in the country, of which most are involved in the illegal drug trade in some capacity. The decline in the estimated number of organized crime groups in Canada compared with the previous report likely is "reflective of an anticipated degree of fluidity in the criminal marketplace," as well as "numerous other factors including disruptions by law enforcement, changes in intelligence collection practices or a combination" of these factors, according to CISC.

Increased smuggling from Canada to the United States included both Ecstasy and combination tablets containing methamphetamine and other synthetic drugs. In 2008-2009, Canadian authorities seized approximately 30 clandestine labs capable of producing large amounts of combination tablets, roughly the same number of laboratories as in the previous reporting period in 2007-2008.

Illustrative of the level of transit, U.S. Customs and Border Protection (CBP) officers along the Michigan-Canada border seized 2,053 pounds of marijuana, 303 pounds of Ecstasy (approximately 1 million doses) and nearly $7.5 million in undeclared currency entering or exiting the United States from Canada, according to an end-of-the-year report from the agency. CBP officers reporting to the Buffalo field office seized 1,231 pounds of hydroponic marijuana, 118 pounds of Ecstasy (approximately 204,000 pills), and a combined total of $1.4 million in undeclared currency.

Domestic Programs/Demand Reduction: Local and provincial authorities continue to maintain a number of so-called "harm reduction" programs, including a supervised injection site research pilot project ("Insite"). The government appealed a May 2008 British Columbia provincial Supreme Court ruling that the federal government does not have the constitutional authority to close Insite, which the Court considered a health facility and within provincial jurisdiction. The British Columbia provincial Court of Appeal heard the government's appeal in April 2009, but as of December, the Court is still deliberating on its judgment. Several cities, including Toronto and Ottawa, have also approved programs to distribute drug paraphernalia, including crack pipes, to chronic users.

There has been no change since the UN International Narcotics Control Board's (INCB) 2007 Report noted that the Vancouver Island Health Authority's approval of "safer crack kits" contravened Article 13 of the 1988 UN Drug Convention, to which Canada is a party. The INCB called upon the Government of Canada to eliminate drug injection sites and drug paraphernalia distribution programs, stating that they violated international drug control treaties.

IV. U.S. Policy Initiatives and Programs

Bilateral Cooperation: In 2009, the U.S. and Canada continued information sharing and binational cooperation through the Cross-Border Crime Forum (CBCF), Integrated Border Enforcement Teams (IBET), Border Enforcement Security Taskforces (BEST), and other fora. The 2007 U.S.-Canada Border Drug Threat Assessment jointly released at the CBCF's 2008 Spring Ministerial was a snapshot of cross-border narcotics issues and trends, and is now scheduled to be updated for release in 2011. The inter-agency forum also addressed counterterrorism, mass marketing fraud, human trafficking, organized crime, border enforcement, drug trafficking, and firearms smuggling—a particular concern for Canada. Provincial, state, and local governments also participate in the CBCF, as do police at the federal, state/provincial, and local/municipal levels. CBCF working groups met throughout the year to develop joint strategies and initiatives and collaborative law enforcement operations that were highlighted during the Ministerial meeting. Canada continues to regularly attend the annual National Methamphetamine and Pharmaceuticals Initiative (NMPI) meeting in the U.S.

In September, there was a Mini CBCF in Washington D.C., primarily to plan for the CBCF Ministerial, tentatively scheduled for the late spring of 2010. Collaborative efforts to be promoted and further explored in leading up to the ministerial include: an IBET Strategic Plan; emerging technologies and challenges for law enforcement; gangs in Canada and the U.S.; bi-national cooperation on firearms tracing; joint cross-border counter-proliferation efforts; and cross-border law enforcement and security Lessons Learned from the 2010 Olympics in Vancouver.

In September, DEA conducted a five-day seminar in Montreal on asset forfeiture and money laundering for 40 members from various law enforcement agencies. In spring 2009, DEA Vancouver and El Paso Intelligence Center personnel provided training in detecting highway drug couriers at a Canadian law enforcement school to more than 400 Canadian officers. During 2009 Canada also participated in supporting naval interdiction efforts as part of Joint Interagency Task Force South. DEA, CBP, the Department of Homeland Security's Immigration and Customs Enforcement, U.S. Coast Guard, CBSA, RCMP, and U.S. state, local, and tribal and Canadian provincial officers consult regularly and maintain channels of communication in the field and at management level to ensure a high level of cooperation and effectiveness.

On September 30, 2009 the Canadian government tabled in the House of Commons the Framework Agreement on Integrated Maritime Cross-Border Law Enforcement Operations (IMCLEO or "Ship rider") between the Canada and the U.S. and introduced implementing legislation in November, 2009. The two countries signed the framework agreement in Detroit, Michigan, on May 26, 2009. Once Canada passes implementing legislation, the agreement will allow the exchange of cross-designated ship riders in order to create seamless maritime law enforcement operations across the U.S.-Canadian maritime border. The program will facilitate more effective maritime counter-smuggling efforts by permitting officers from each country to operate from one another's vessels or aircraft.

The RCMP also contributed to a U.S. government effort under the Merida Initiative in Mexico, providing instructors to assist with the training of a new investigative force of 9,000 police in the Mexican Secretariat of Public Security. Recognized at the North American Leaders Summit, this effort began in May 2009 and is expected to continue with Canadian support in 2010.

The Road Ahead: The security of the continent and much of the hemisphere will benefit from continued cooperation between the United States and Canada. Fora such as the CBCF can also serve as a model for regional cooperation and collaboration for senior law enforcement, justice, and security officials to enhance and encourage intelligence sharing, investigative collaboration, and joint training opportunities. The USG encourages Canada to exert its influence in the Caribbean Basin to establish similar fora and to work with the U.S. to explore methods and means for information sharing with other regional partners.

The U.S. also encourages Canada to take stronger action to curb the rise of methamphetamine production. As producers respond to enforcement action elsewhere in the globe, particularly in Mexico, an upsurge in Canadian methamphetamine production has raised the prospect of increased smuggling from Canada to international markets, as well as further production and export of Ecstasy. Canada's continued role as a source country for Ecstasy to U.S. markets highlights the need for greater cooperation in tracking precursor chemical activity. The U.S. looks forward to future collaborative engagement with Canada to build enforcement capacity and regulatory frameworks to promote industry compliance and prevent diversion of precursor chemicals and lab equipment for criminal use. As law enforcement resources temporarily diverted to prepare for the 2010 Winter Olympics in Vancouver return to normal routines, a more effective and expansive inspection regime, in conjunction with expedited investigations and prosecutions, will also strengthen enforcement efforts.

With no change in the past year, the U.S. still urges Canada to continue to press municipalities such as Vancouver and Ottawa to implement the INCB's recommendations to eliminate drug injection sites and drug paraphernalia distribution programs as a violation of international drug control treaties.

The U.S. also hopes to see the required legislation passed for implementation of the "Shiprider" agreement. As climate change continues to redefine the maritime approaches to the continent, there will be increasing opportunity and reason for the U.S and Canada to expand collaboration in the maritime domain.