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Native Cigarettes Canada in Cornwall, Quebec, there are line after line of grey warehouses and manufacturing sheds emblazoned with the logo of Grand River Enterprises, one of several tobacco manufacturers operating in this area. The company’s chief of staff, Rowena General, tells Frontline Safety and Security magazine that a single tractor-trailer load of indigenously produced cigarettes resold at half the normal commercial shop price brings in illicit profits worth more than C$2.5m ($2.2m). It also cuts into Ottawa’s revenue by about the same amount.

Supporting Indigenous Economies: The Impact of Purchasing Native Cigarettes”

The smuggling business plays right into the hands of the anti-smoking lobby, which pushes for plain packaging that would completely obliterate the brand imagery. But that would do even more damage to the cigarette manufacturers on First Nations reserves, where the locals are determined to retain their income streams and reclaim their traditional way of life.

The smuggling trade may also deter young people from more productive work and harm community development. It also undermines convenience stores that depend on tobacco sales to drive their overall sales, and it may exacerbate problems such as substance abuse and obesity among youth. In an effort to reduce the impact of tobacco smuggling, some provinces have worked with First Nations communities to ensure that prices on reserve are consistent with those off. This approach appears to have had some success, but it requires an ongoing commitment to enforce the policy.