ILLEGAL DRUG PRODUCTION THRIVING, MOUNTIES SAY

Canada is one of the world's largest producers of synthetic drugs such
as ecstasy and crystal meth, the RCMP said yesterday warning that
large-scale clandestine laboratories are thriving in the country.

Since the beginning of the year, the RCMP has dismantled 37
clandestine labs with industrial production capacity. Most of them
were located in British Columbia (24), followed by Quebec (seven) and
Ontario (six).

"It's the first time we dismantle so many big labs in such a short
period of time," said RCMP Cpl. Raymond Martel.

"This is a serious threat in Canada, it's our national priority," he
added.

Martel was delivering a presentation yesterday in Quebec City to
representatives from Canadian pharmaceutical and chemical producers
and distributors.

The RCMP wants to raise their awareness of the growing diversion of
legal chemical substances to make illegal substances.

Organized crime groups are moving into the production of synthetic
drugs because many of the products needed to produce those drugs -
called precursor chemicals - can easily be imported, and often
legally, to Canada.

Before 2003, no precursor chemicals were banned in Canada, making the
country a haven for drug traffickers to bring in their product, Martel
said.

"That lack of regulation led the organized crime to flourish in
Canada," said Martel, who works for the chemical diversion program of
the RCMP.

He said organized crime groups are taking profit of this illicit
trade, such as Asian gangs, bikers, as well as Russian and
Indo-Canadian crime groups.

In 2003 several precursor chemicals used to make methamphetamine and
ecstasy were banned or regulated, but others still have no
restrictions on their importation.

"That law has helped us," Martel stressed.

He said brokers in China and India are the biggest exporters of
precursor chemicals to Canada. The chemicals are transformed into
synthetic drugs in clandestine labs in Canada and exported to several
countries.

Martel said drug traffickers are going global because the profit
margin of selling precursor chemical on the black market is very high.
For instance 25 kilograms of ephedrine - used to manufacture a variety
of synthetic drugs - can be bought for $2,500 to $5,000. One kilogram
of ephedrine can be resold on the black market for between $1,000 and
$3,000.

Martel also said that organized groups operating in Canada are
pressuring pharmaceutical and chemical companies to sell them in bulk
the key ingredients to create synthetic drugs.

"They put large sums of money on the table and they say 'we need this
chemical.' That puts incredible pressure on companies," Martel said.