CME report calls for stronger action to combat illicit trade threatening Canadian manufacturers
OTTAWA, ON, June 2, 2026 /CNW/ - Amid persistent global instability and ongoing trade tensions with the United States, Canadian Manufacturers & Exporters (CME) is calling on the federal government to build on recent progress and strengthen Canada's response to illicit trade, which continues to impose significant costs through lost government revenue, public health and safety risks, economic distortions that undermine law-abiding businesses, and reduced confidence in Canada's regulatory and enforcement environment. The fallout from illicit trade adds further pressure on Canadian manufacturers already operating in an extremely challenging environment.
CME's new report, Pressing matters: combatting illicit trade and manufacturing equipment misuse in Canada, outlines how illicit trade has become a complex, multi-sector challenge in Canada, shaped by enforcement gaps, uneven oversight, lagging technology investment, and increasingly sophisticated global supply chains. It also highlights how the misuse of high-risk manufacturing equipment and digital tools has made illicit products easier to produce, market, and distribute at scale.
"Illicit trade today is bigger, faster and more global, and gaps in enforcement are harming Canadian manufacturers that play by the rules," said Dennis Darby, President and CEO of CME. "From counterfeit and contraband goods to auto and cargo theft, bad actors are eroding competitiveness and putting jobs at risk."
Manufacturing remains a cornerstone of Canada's economy, supporting millions of jobs and a significant share of exports. But its ability to compete depends on a fair, secure, and well-enforced marketplace.
CME welcomes the federal government's recent efforts to strengthen border security, including continued implementation of the $1.3 billion Border Plan and the commitment to establish a Financial Crimes Agency. These measures are an important start, but the Border Plan remains focused primarily on fentanyl and irregular migration and does not fully address the broader illicit trade landscape. With border enforcement credibility an important factor in Canada's trade relationship with the United States and the outcome of the CUSMA review, the report identifies four priority areas for action:
- Build on the existing Border Plan to deliver measurable results through stable funding, modern screening technology, expanded inspection capacity, and enforcement beyond fentanyl and irregular migration.
- Deepen U.S. and domestic cooperation through intelligence sharing, joint task forces, and coordinated investigations across jurisdictions.
- Improve oversight of high-risk goods and equipment to prevent diversion into illicit production and distribution.
- Reduce demand and disrupt illegal nicotine and online markets through public education, stronger enforcement, and better national coordination.
The report argues that a modern, coordinated response to illicit trade would help restore fair competition, protect government revenues, support long-term investment, and strengthen Canada's position as a secure and reliable trading partner. CME will continue to work closely with governments and key trading partners to advance that outcome and reinforce Canada's position as a trusted and competitive manufacturing jurisdiction.
About Canadian Manufacturers & Exporters
Canadian Manufacturers & Exporters (CME) is a national community of manufacturers working together to help businesses grow, compete, and succeed. Since 1871, CME has been a trusted and influential voice for manufacturing, shaping public policy and helping businesses navigate the economic and regulatory challenges that affect their bottom line.
SOURCE Canadian Manufacturers & Exporters
Media Contact: Julie Fortier, National Communications Director, Canadian Manufacturers & Exporters, Email. [email protected], Tel. 613-324-4209
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