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Criminal Markets - Illicit Drugs

Criminal Markets

Illicit Drugs

Cocaine
Cocaine remains one of the most significant illicit drug markets as indicated by global production levels and Canadian seizure statistics. Cocaine is imported by organized crime groups directly from source countries, particularly Peru, or through transit countries such as the Dominican Republic, Guyana, Jamaica, and Mexico. Inter-provincial distribution of cocaine is coordinated from B.C., Ontario, and Quebec, where it is sold at the wholesale level to criminal groups that subsequently sell it to retail distributors.

Crack Cocaine
A derivative of cocaine, crack cocaine tends to be concentrated in urban centres across Canada. Due to the addictive nature and short-lived effects of crack, users frequently engage in low-level property crimes, robbery and crimes against persons, often creating pockets of cyclical crime. The majority of the criminal groups involved in crack cocaine are street gangs involved in retail distribution, primarily from street corners, crack houses, as well as dial-a-dope systems.

Dial-a-dope refers to a system used by street level distributors to sell illicit drugs by responding to requests placed to a series of disposable cellular phones.

Ecstasy
Canada, the Netherlands and Belgium are the primary source countries of ecstasy to the global illicit drug trade. Canada continues to be a major producer for both domestic and international markets, exporting significant quantities primarily to the US and to a lesser extent, Japan, Australia and New Zealand. Substantial production of ecstasy has directly impacted the domestic market, resulting in a considerable decline in price since 2003. Moreover, the chemical profile of ecstasy has shifted towards a cocktail composition that contains decreased quantities of MDMA, its primary active ingredient, and increased quantities of several chemical fillers and substances, predominantly methamphetamine, as well as ketamine, ephedrine and caffeine. This trend poses a significant risk for consumers as they are unaware of the chemical composition of the ecstasy tablet and its harmful effects.

CAPTAIN (NAVY) STEVE MOORE, CANADIAN FORCES PROVOST MARSHAL
“Where there is a demand for illegal commodities, criminal markets will exist, and Canadian Forces Defence Establishments are no exception. The CF Military Police are committed to using an intelligence-led approach to combat the reach of organized crime.”

Heroin
In Canada, consumer demand for heroin remains low in comparison with demand for most other forms of drugs. As such, a limited number of organized crime groups, mainly in B.C. and Ontario, are involved in the heroin market, importing heroin primarily from Southwest Asia and Latin America.

Marihuana
Marihuana remains one of the most trafficked illicit drugs in Canada, with extensive organized crime involvement at all levels of production, distribution and exportation. Canada continues to be a source country for marihuana, meeting significant domestic and US cross-border demand. B.C., Ontario and Quebec continue to be the primary hubs of production and distribution to domestic and US markets. Given the significant demand for marihuana in the US, Canada meets a small proportion of their supply, particularly in comparison to quantities derived from US domestic production and Mexico.

Marihuana plant

Methamphetamine
Methamphetamine production in Canada has risen primarily to meet expanding international market consumption and to a lesser extent, limited domestic demand. The number of super labs in Canada indicates the capacity to produce significant quantities for foreign distribution. In 2007, seizures of Canadian-produced methamphetamine were interdicted in Australia, Japan, New Zealand and to a lesser extent, China, Taiwan, India and Iran. The majority of the groups involved in the manufacture of methamphetamine are based in B.C.; however, the dismantlement of several super labs in Ontario and Quebec during the past year demonstrates the eastward movement of production hubs.

Super labs have the capability of producing 5 kg or more of illicit synthetic drugs.

Opium
In 2007, the United Nations Office on Drugs and Crime (UNODC) reported that Afghanistan reached record highs of opium production, accounting for 92% of global illicit opium production. As a result, opium seizures in Canada have increased significantly in the past year; however, total seizures remain relatively low in comparison with other illicit drugs. The majority of opium is destined for a limited domestic market with a small number of organized crime groups involved in crossborder smuggling and distribution of opium to the US.

Pharmaceutical Opiates
According to the International Narcotics Control Board (INCB), the abuse of prescription drugs is set to exceed consumption of illicit narcotics worldwide and Canadians are among the heaviest consumers of pharmaceutical opiates globally. Moreover, the findings of a recent national study indicate that in many communities across Canada, heroin is being replaced with prescription drugs such as Oxycodone (e.g. OxyContin) and Hydromorphone (e.g. Dilaudid). Several organized crime groups, particularly in Atlantic Canada, are involved in the illicit retail distribution of prescription opiate drugs.

CHIEF FRANK A. BEAZLEY, HALIFAX REGIONAL POLICE
“Drugs of all types lead to the decay of our neighbourhoods and undermine the positive development of our youth. We should not be lulled into believing that counterfeit and illegally obtained prescription drugs are any less dangerous than illicit drugs such as cocaine and ecstasy.”

Criminal Markets - Financial Crime