DRUG LABS 'SERIOUS THREAT' TO CANADA

Of Almost 40 Operations Torn Down This Year, More Than Half Were In
B.C., RCMP Say

Canada is one of the world's largest producers of synthetic drugs, the
RCMP said Wednesday, even after dismantling dozens of large-scale labs
this year, mostly in British Columbia.

Since the beginning of the year, the RCMP has dismantled 37
clandestine ecstasy and crystal meth labs with industrial production
capacity. Most of them were located in B.C. (24), followed by Quebec
(7) and Ontario (6).

"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 Wednesday in Quebec City to
representatives from Canadian pharmaceutical and chemical producers
and distributors.

The RCMP wants to raise 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 several organized crime groups are profiting off this illicit
trade, such as Asian organizations, bikers, the Russian mafia 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 chemicals 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 between $1,000
and $3,000.

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

Police forces are looking to work more closely with companies to help
to flag suspicious transactions or buyers.