CME Urges Canada to Bolster Illicit Trade Fight as Manufacturing Sector Faces Growing Threats
Event summary
- CME's June 2026 report highlights illicit trade as a multi-sector challenge costing Canadian manufacturers through lost revenue, safety risks, and economic distortions.
- The $1.3 billion Border Plan remains focused on fentanyl and migration, leaving broader illicit trade issues unaddressed.
- CME identifies four priority areas for action, including expanded border enforcement, U.S.-Canada cooperation, and oversight of high-risk manufacturing equipment.
- Manufacturing supports millions of Canadian jobs and a significant share of exports, but faces competitiveness pressures from illicit trade.
The big picture
CME's report underscores the growing threat of illicit trade to Canada's manufacturing sector, which remains a cornerstone of the economy. The call for stronger action comes amid persistent global instability and ongoing trade tensions with the U.S., highlighting the need for a coordinated response to restore fair competition and protect government revenues. The outcome of the CUSMA review and Canada's trade relationship with the U.S. will be influenced by the credibility of its border enforcement efforts.
What we're watching
- Regulatory Enforcement
- Whether Canada can expand the Border Plan's scope to address broader illicit trade issues beyond fentanyl and migration.
- Cross-Border Cooperation
- The pace at which U.S.-Canada intelligence sharing and joint task forces can be established to combat illicit trade.
- Manufacturing Competitiveness
- How effective oversight of high-risk manufacturing equipment will be in preventing diversion into illicit production.