Canadians to President Obama: Stop cigarette smuggling trade

U.S. President Obama made his first visit to Canada last week and greeting him at Ottawa’s Parliament Hill was a 21-meter long banner that read “Please STOP cigarette smuggling for the U.S. to Canada.”

The Canadian government has lost billions of dollars in cigarette tax money because, they say, Akwesasne’s cigarette factories are fueling the smuggling trade.

According to the RCMP, Akwesasne’s ten alleged unlicensed cigarette factories account for as much as 90% of Canada’s contraband tobacco problem.

The cigarette factory owners are either operating in secret or believe they are exempt from paying U.S. licensing fees for their on-reservation enterprise.

The tobacco is packaged in Akwesasne and sold to local cigarette shops or individuals. Some of those buyers in turn smuggle the goods across Akwesasne’s river border into Canada. The RCMP unit dedicated to combating cigarette smuggling has the area under high surveillance and nearly every week a seizure of contraband goods in the Cornwall area is announced.

As Canada continues to increase taxes on tobacco products, the market for black market cigarettes increases also.

The Canadian Council of Tobacco Control called on President Obama to put an end to their struggle.

“We urge President Obama to take immediate action to shut down the

illegal factories which are openly in violation of U.S. federal law,” said Bob

Walsh, CCTC Executive Director. “U.S. federal enforcement authorities are well

aware of the situation, but lack sufficient personnel in the area to take

action. The President must ensure that the necessary enforcement resources are

put in place.”

Walsh said that Pres. Obama’s plan to increase U.S. taxes on tobacco will cause unlicensed cigarette factories to begin feeding the American cigarette economy as well.