The Potential Expansion of Methamphetamine Production and Distribution in Canada

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The Potential Expansion of
Methamphetamine Production and
Distribution in Canada

A BACKGROUND STUDY

PREPARED BY BRUNO NORDESTE
CARLETON UNIVERSITY

NOVEMBER 2004

A Report Commissioned by
Criminal Intelligence Service Canada

Feedback is welcome and may be sent to cifp@carleton.ca
David Carment, Principal Investigator
http://www.carleton.ca/cifp
BACKGROUND STUDY -- METHAMPHETAMINE 1

                                      About the Project
In January 2004, Criminal Intelligence Service Canada (CISC) initiated Project SOOTHSAYER.
The goal of the project was to develop a strategic early warning system (SEWS) for organized
and serious crime in Canada. The project had three broad objectives: I) the development of a
methodology suited to intelligence warning for law enforcement; II) the establishment of a
reporting mechanism; and III) the development of dissemination and communications methods
(i.e. a product line). SEWS focuses on emergent events and phenomena – be they local, national
or international, demographic, economic or technological – that could potentially alter the
organized and serious crime situation in Canada. CISC sought out the support of the Country
Indicators for Foreign Policy (CIFP) at the Norman Paterson School of International Affairs,
Carleton University, which had a demonstrated expertise in warning for state failure, risk
assessment and early warning. A central element of this venture was the development of the
project’s scanning component, known as the SENTINEL Watch List. This report, commissioned
by the CISC and produced by CIFP, is the essential background to one of the project’s pilot
SENTINEL on the state of the methamphetamine market in Canada and the role of organized
crime within it.

                                      About the Author
Bruno Nordeste, MA, holds a Masters degree in International Affairs from the Norman Paterson
School of International Affairs, at Carleton University where he specialized in conflict analysis and
conflict resolution. Before entering Carleton, Bruno completed a four-year combined honours
program in History and Political Science at McMaster University where he graduated with
distinction. Bruno served as project analyst and research consultant for the Country Indicators for
Foreign Policy project’s Watch List Report and the CIFP/CISC joint “Creating an Organized
Crime SENTINEL: development and implementation of a strategic early warning methodology for
law enforcement”.
BACKGROUND STUDY -- METHAMPHETAMINE 2

TABLE OF CONTENTS:

I    Introduction                                              3

II Executive Summary                                           5

III Demand, Consumption, and Usage of Methamphetamine          6

1)   Demand Dynamics                                           6
2)   Consumption                                               6
3)   Demand Trends                                             8
4)   Substitutes and Compliments to Methamphetamine            9

IV Supply, Production, Trafficking and Market Manipulation     11

1)   Supply Dynamics                                           11
2)   Production                                                12
3)   Trafficking and Smuggling                                 13
4)   Supply Trends                                             13
5)   Profitability                                             15
6)   Potential for Market Monopolization                       16
7)   Methamphetamine Market and Organized Crime                16

V Societal Factors and Usage                                   18

1)   Who Uses Methamphetamine?                                 18
2)   Instrumental Use                                          18
3)   Sub-cultural/ Recreational Use                            19
4)   Chronic Use                                               19

VI Regulatory Structures and Precursor Control                 21

1) Canada’s Drug Strategy                                      21
2) Precursor Diversion                                         21
3) Precursor Control                                           22

VII Environmental Factors                                      24

1) Environmental Requirements                                  24
2) Environmental Impacts                                       25

VIII Bibliography                                              26
BACKGROUND STUDY -- METHAMPHETAMINE 3

I – INTRODUCTION

First synthesized in 1893 from ephedrine in          obesity (through      weight    control),   and
Japan, a natural stimulant and organic               depression.4
substance found in the ephedra plant,
methamphetamine is a powerfully addictive            These same stimulant properties warranted
stimulant that dramatically affects the central      their use during the Second World War as
nervous system.1 Methamphetamine is also             they were distributed in large quantities to
referred to as ‘speed’, ‘meth’, ‘chalk’, ‘jib’,      military personnel to ensure alertness,
‘teck’ ‘zip’, ‘spoosh’, ‘shi-shi’, ‘poor man’s       increase productivity, enhance fighting spirit
cocaine’ and ‘load of laundry’. In its more          and suppress appetite during the long and
potent, crystallized, smokeable form (d-             arduous wartime campaigns. Over 200
methamphetamine hydrochloride) it is also            million tablets were supplied to American
known as ‘crystal meth’, ‘crystal’, ‘ice’,           troops during the war period and an
‘crank’, ‘fire’, ‘glass’, ‘shards’ and ‘shabu’. 2    unknown quantity was supplied to the
Methamphetamine is often confused with               Japanese military in the same period.
other stimulants such as ephedrine (its              Subsequently, amphetamine use spread to
precursor), amphetamine (of which it is a            other segments of society where energy,
derivative), caffeine, and illicit stimulants        stamina, and performance were significant
such as ecstasy.                                     components of the lifestyle, for example:
                                                     long distance truck drivers; students; and
Used for hundreds of years as medicine in            athletes.5
China, methamphetamine (and the greater
group of amphetamine type stimulants ATS)            Recreational use of methamphetamine was
was introduced in the 1930s and originally           first associated with American motorcycle
intended for use in nasal decongestant and           gangs in 1950s and British ‘mods and
bronchial inhalers. 3 However, its stimulant         rockers’ of the 1960s, who used the drug in
properties found medical use in treating             a way that is remarkably similar to the use of
attention deficit hyperactivity disorder             these same drugs today by young people
(ADHD), narcolepsy (a sleeping disorder),            associated with the ‘dance/rave culture’.6

                                                     Large stocks of amphetamine (and
                                                     Methamphetamine) left over from licit
1                                                    production during the war period fed a
  British Columbia Ministry of Health Services,
Crystal Meth and Other Methamphetamines: An          number of ‘epidemics’ in Japan, the United
Integrated BC Strategy (Ministry of State for        States, and Sweden. In the US,
Mental Health and Addiction Services, 2004) p. 4.    methamphetamine          remained         easily
Copy available at website:                           obtainable without a prescription until 1951.
http://www.heatlhservices.gov.bc.ca/mhd.             In each case amphetamines were commonly
2
  Ibid; and Susan Pennell, Joe Ellett, Cynthia
Rienick, and Jackie Grimes, Meth Matters:
                                                     available in both the licit and illicit markets,
Report on Methamphetamine Users in Five              while use of the drug became associated
Western Cities (Criminal Justice Research            with particular sections of the community
Division of the San Diego Association of
Governments, 1999) p. ix; and National
                                                     4
Institute on Drug Abuse, Community Drug                Ibid.
                                                     5
Bulletin: Methamphetamine (US Department of            Division of Mental Health and Prevention of
Health and Human Services, 1998); and Jane           Substance Abuse, Epidemiology and Social
Buxton, Vancouver Drug Use Epidemiology              Context of Amphetamine-type Stimulant Use
(Canadian Community Epidemiology Network on          (World Health Organization 1997), p. 12; and
Drug Use, 2003), 44.                                 British Columbia Ministry of Health Services,
3
  British Columbia Ministry of Health Services,      Crystal Meth and Other Methamphetamines: An
Crystal Meth and Other Methamphetamines: An          Integrated BC Strategy, p. 4.
                                                     6
Integrated BC Strategy, p. 4; and, Drug Policy         Division of Mental Health and Prevention of
Information Clearinghouse, Fact Sheet:               Substance Abuse, Epidemiology and Social
Methamphetamine (Office of National Drug             Context of Amphetamine-type Stimulant Use
Control Policy 2003) p. 1.                           (World Health Organization 1997), p. 12.
BACKGROUND STUDY -- METHAMPHETAMINE 4

through      medical,      occupational       or       process through which methamphetamine
recreational use.7                                     could be produced.

Furthermore, its use spread from the ‘avant            The methamphetamine problem spread
garde’, who popularized the drug, to the               quickly between 1992 and 1997, arriving in
more marginalized sections of society. This            Oregon and Washington by 1994. It is
phenomenon was essential in the creation of            believed that the spread to the northern
a subculture of hard core addicts and users            states along the Canadian border was due
who became the driving force behind the                to the large amounts of pseudo-ephedrine
demand for methamphetamine in the drug                 (another      precursor    chemical    for
market. The increase of demand led to the              methamphetamine) being smuggled across
quick depletion of licit stocks leftover from          the border from Canada into the US.10
wartime, and combined with the stricter
regulation in licit production and limits to           The history of methamphetamine in Canada
medical prescriptions, encouraged illicit              is much less clear, and not very well
manufacturing.                                         documented. Perhaps this is due to the lack
                                                       of a large scale epidemic similar in
In the US, the illicit manufacture of                  proportion to that witnessed in the US.
methamphetamine was primarily associated               However, methamphetamine has long been
with organized motorcycle gangs (OMG) like             an established presence in Western
the ‘Hell’s Angels’, and limited to the                Canada, particularly British Columbia (BC).
western regions of the country, principally            BC experienced high methamphetamine use
the San Francisco Bay area from where illicit          in the 1960s, 1970s, and 1980s. Prevalence
production began in the 1960s. The majority            in use of methamphetamine has always
of the methamphetamine market, however,                been greater in BC and Alberta, and as of
was still dominated by independent                     2002 it has once again surfaced as a drug of
producers who usually focused on feeding               concern.11
personal and local consumption –
colloquially known as ‘mom & pop’                      In November of 2004, stakeholders from
operations.8                                           across Western Canada met in Vancouver
                                                       to develop a collaborative approach to
However, as early as 1996 indicators began             address the issue of ‘crystal meth’ use and
emerging of increased methamphetamine                  production. 12 The Western Canadian
manufacturing and trafficking in various               Summit on Methamphetamine is evidence of
locations throughout the US, which indicated           the growing concern that Canadians should
that the methamphetamine drug market had               be showing to this issue – particularly with
spread well beyond its western origins. The            the example of the effects of organized
shift was attributed to the decline in the             crime on the methamphetamine market in
cocaine trade and the greater interest in              the US.
methamphetamine by Mexican organized
crime groups familiar with the dynamics of
drug markets.9 Moreover, the importance of
the Internet cannot be over-looked in making
widely available and accessible information
related to the ingredients, methods, and
                                                       10
                                                          Office of Drugs and Crime, Global Illicit Drug
                                                       Trends 2003 (New York: United Nations, 2003),
                                                       p. 34.
7                                                      11
  Ibid.                                                   British Columbia Ministry of Health Services,
8
  Susan Pennell et al., Meth Matters: Report on        Crystal Meth and Other Methamphetamines: An
Methamphetamine Users in Five Western Cities,          Integrated BC Strategy, p. 5.
                                                       12
p. ix, 3; and Division of Mental Health and               Western Canadian experts converge to deal
Prevention of Substance Abuse, Epidemiology            with crystal meth crisis, retrieved November 14,
and Social Context of Amphetamine-type                 2004:
Stimulant Use p. 12.                                   http://healthandfitness.sympatico.msn.ca/News/
9
  Susan Pennell et al., Meth Matters: Report on        ContentPosting.aspx?contentid=c2b02332b35b4
Methamphetamine Users in Five Western Cities,          7a593efe61f302ef84a&show=False&number=0&
p. ix, 4.                                              showbyline=False&subtitle=&abc=abc
BACKGROUND STUDY -- METHAMPHETAMINE 5

II – EXECUTIVE SUMMARY                            Methamphetamine is produced domestically
                                                 in Canada in British Columbia, Alberta,
                                                 Manitoba, Ontario, Quebec, and most
1) PREVALENCE                                    recently Saskatchewan. Higher rates of
The use of methamphetamine in Canada is          production are witnessed in British Columbia
low relative to the abuse of other substances    and Alberta.
such as alcohol, tobacco, and cannabis.
Overall, its use is still less than that of
cocaine and heroin; however, its prevalence      4) PRODUCTION
may be considered acute in certain regions,      The production of methamphetamine in
particularly in Western Canada. Provincially,    Canada is dominated by independent
methamphetamine abuse is higher in British       producers feeding local demand. However,
Columbia and Alberta. There does seem to         there is significant involvement of organized
be evidence of a move eastwards as use           crime groups at all levels of the
has become more significant in Ontario and       methamphetamine market. In Canada it
Quebec, and it has surfaced in rural             appears that organized motorcycle gangs
communities in Saskatchewan and Manitoba         [OMG] like the Hells Angels and Asian-
as well.                                         based organized crime are the two largest
                                                 identifiable    groups     involved  in   the
                                                 methamphetamine market. However, the
2) DEMAND                                        Canadian market remains competitive and
Methamphetamine use is stable among the          dynamic, with numerous independent
general population. Among the youth              organized crime groups involved at all
population its use is higher but has also        levels. Moreover, there appears to be signs
remained stable. Very high rates of abuse        of interrelatedness or even complementarity
occur in certain vulnerable societal             between differing drug markets (in Canada
subgroups (some of whose lifestyles are          particularly between marijuana grow and
associated with a higher demand for illicit      methamphetamine production distribution
stimulants). These include, but are not          operations).
limited to: children or family members
associated with or in homes where
methamphetamine use or production is             5) COUNTERMEASURES
taking place; youth and young adults             Precursor control remains the best supply
between the ages of 14-29 including street       reduction method available to combat the
youth; youth attending rave dance scenes;        expansion of the methamphetamine market.
young women with perceptual weight               Canada has enacted and implemented its
problems; athletes and ‘super achievers’         Precursor Control Regulations recently,
(ambitious students); the homeless; some         beginning in January of 2003. The success
segments of the homosexual community             of these regulations is not yet apparent as
including those attending sex clubs; sex         insufficient time has passed in order to
trade workers; multiple-drug users; and          evaluate their effectiveness. However, some
those      in   rural  communities    where      provisions contained within the regulations
methamphetamine is being manufactured,           indicate the implementation of a process of
making it inexpensive enough to become the       voluntary      reporting    of     suspicious
illicit drug of choice. Trends indicate that     transactions by the private sector. Moreover,
rates of use amongst these populations are       the Precursor Control Regulations rely on
increasing and are fuelling greater demand       the effective and consistent cooperation
for methamphetamine.                             between both the private sector industry and
                                                 retailers, along with relevant government
                                                 agencies. This creates room for possible
3) SUPPLY                                        subversion and exploitation of any
The manufacturing of methamphetamine             monitoring or enforcement process.
has remained relatively stable, with some
recent spikes in production. Data is mostly
provided by seizures of methamphetamine-
producing    laboratories    and    finished
methamphetamine product.
BACKGROUND STUDY -- METHAMPHETAMINE 6

III – DEMAND, DEMAND TRENDS, CONSUMPTION, AND USAGE OF METHAMPHETAMINE

• Methamphetamine         possesses      greater     • Prevalence    of   methamphetamine         use
  functional utility then most traditional illicit     appears to be low and stable among the
  substances.                                          general population, but rising among
• Frequency of consumption varies depending            vulnerable sub-groups.
  on location and individuals. British Columbia,     • Through its association with ‘designer drugs’
  Alberta and Ontario appear to have a higher          and ‘club drugs’, methamphetamine has
  prevalence rates, with higher levels of              gained greater popularity. It is also a popular
  methamphetamine consumption associated               and cheaper substitute for cocaine.
  with ‘at risk groups’.

1) Demand Dynamics                                     same stimulant effects (like cocaine). 16
                                                       Moreover, until recently the public health risk
A complex of social, cultural and economic             posed by methamphetamine was often
forces appears to drive demand for ATS                 completely        overshadowed       by     the
substances like methamphetamine. ATS                   institutional fixation with plant-based drugs,
portray an image of modernism in their close           which often leaves law enforcement, the
association       with     the  contemporary           medical establishment, and drug prevention
phenomenon of ‘designer drugs’, especially             networks with few usable tools to both
when compared with the traditional                     identify and adequately deal with surfacing
stimulants (i.e. caffeine and nicotine)                methamphetamine abuse.17
frequently consumed in many societies and
traditional illicit drugs (i.e. cocaine and            2) Consumption
heroin). 13 Unlike traditional narcotics,
methamphetamine            is  most    often           Current prevalence estimates indicate that
manufactured in the country of consumption,            consumption of methamphetamine in
thus eliminating the need for the elaborate            Canada is limited to between 0.5% and 1%
trafficking and smuggling methods across               of the population 15 years of age and up.18
international frontiers.14                             Lifetime prevalence among youth and young
                                                       adults between the ages of 12 and 25 is
Methamphetamine,        like   other     ATS           estimated at less than 5%.19
substances, also possesses a greater
functional utility which allows it to more             However, consumption varies depending on
easily create niche markets for which other            location and individuals. British Columbia,
illicit drugs cannot provide for. 15                   Alberta and Ontario appear to have a higher
Methamphetamine is comparatively less                  percentage of methamphetamine users. In
expensive then traditional narcotics with the          B.C. it is estimated that lifetime use among
                                                       school age children is 4%. 20 In Alberta,
13
   Expert Meeting on Amphetamine-type
                                                       16
Stimulants Shanghai November 25-29, Policy                Office of Drugs and Crime, World Drug Report
Options for Countermeasures (Shanghai: United          2004, p. 175.
                                                       17
Nations Drug Control Programme, 1996), p. 4;              Expert Meeting on Amphetamine-type
and Office of Drugs and Crime, Global Illicit Drug     Stimulants Shanghai November 25-29, Policy
Trends 2003, p. 113.                                   Options for Countermeasures, p. 6.
14                                                     18
   United Nations Drug Control Programme,                 Office of Drugs and Crime, World Drug Report
Amphetamine-Type Stimulants: A Global Review           2004, p. 177.
                                                       19
(Vienna: Commission on Narcotic Drugs, 1996),             Gary Roberts et al. and Canadian Centre on
p. 44; and Office of Drugs and Crime, World            Substance Abuse, Preventing Substance Use
Drug Report 2004 (New York: United Nations,            Problems Among Young People: A Compendium
2004), p. 159.                                         of Best Practices (Ottawa: Office of Canada’s
15
   Expert Meeting on Amphetamine-type                  Drug Strategy Health Canada, 2001), p. 8.
                                                       20
Stimulants Shanghai November 25-29, Policy                Lisa May et al., Healthy Youth Development:
Options for Countermeasures, p. 5.                     Highlights from the 2003 Student Health Survey
BACKGROUND STUDY -- METHAMPHETAMINE 7

students surveyed from grades 7 to 12 show           among injection multiple-drug users at four
a past year use of 5.3%.21 An Ontario survey         different sites (Regina, Sudbury, Toronto,
of students, ranging from grade 7 to 12,             and Victoria) of those surveyed in Victoria
showed a lifetime use of 4.3% and a past             32.7%       said   that     they    injected
year use of 3.3%. The same surveys show              methamphetamine, and 18.7% said they
that use among males is typically greater            had consumed it in another form. 24 These
than that among females and that use peaks           users were also more likely to have a higher
at grades 10 and 11, then drops in grade 12.         rate of use.
Prevalence increases again from the ages of
19 to 25.22                                          The higher rates of use in BC have led to
                                                     greater awareness of the problem and
Other provincial student survey data from            associated societal and health risks.
Newfoundland, Nova Scotia, Prince Edward             Methamphetamine related deaths in the past
Island and New Brunswick does not indicate           three years (2002-2004) total 25, and 17
methamphetamine prevalence directly, and             new cases of Leucoencephalopathy (toxic
it is assumed that it is lumped together in the      damage of white matter of the brain) have
category of ‘other illicit substances’. The          been identified since 2003, 8 of which have
same is true for the limited data on the             died (note: this toxic damage is also
territories; Yukon, North West Territories,          attributed to heavy abuse of heroin).25
and Nunavut. This is in itself an indication
that methamphetamine use has not yet                 Alberta, Ontario and Quebec do not yet
become an observable problem within these            have such alarming cases resulting from
regions.                                             high levels of abuse. However, in Edmonton
                                                     it is estimated that 5.3% of youth have
These surveys do not however represent the           consumed ‘crystal meth’ in the past twelve
prevalence in ‘out-of-the-mainstream’ youth,         months (surpassing cocaine at 2.9%), and
or prevalence among the adult population.            among street youth ‘crystal meth’ is second
Data reflecting use among the general                only to marijuana as the most commonly
population is difficult to collate and is usually    used drugs over the past three months with
estimated. However, the indication is that           a prevalence of 8.1%.26 In Calgary, the rave
prevalence varies with location, and                 culture and ‘club scene’ are gaining
circumstance. BC and Alberta show the                popularity and it is anticipated that
highest rates of methamphetamine abuse,              methamphetamine use is high with those
followed by Ontario and Quebec (who show             associated with such subgroups, as well as
a greater use of ecstasy).                           those in the rural areas where the drug is
                                                     manufactured. 27 In Toronto and Montreal
In BC the number of youth whom have used             (and to a lesser extent some areas of
methamphetamine ranges from 1.4% and                 Northern Ontario) there is concern over the
3.3% (both in school and street youth) in the
rural areas of the province, to 10% in               24
                                                        Health Canada, I-Track: Enhanced
Victoria and 70% in Vancouver (street                Surveillance of Risk Behaviours Among Injecting
youth). 23 In a survey of risk behaviours            Drug Users in Canada: Pilot Survey Report.
                                                     February 2004 (Surveillance and Risk
                                                     Assessment Division, Centre for Infectious
(Vancouver: The McCreary Centre Society,             Disease Prevention and Control, Health Canada,
2004), p. 17; and British Columbia Ministry of       2004), p. 18-19.
                                                     25
Health Services, Crystal Meth and Other                 British Columbia Ministry of Health Services,
Methamphetamines: An Integrated BC Strategy,         Crystal Meth and Other Methamphetamines: An
p. 22.                                               Integrated BC Strategy, p. 22; and Jane Buxton,
21
   Alberta Alcohol and Drug Abuse Commission,        Vancouver Drug Use Epidemiology, p. 44; and
Adolescent Substance and Gambling Use May            Colleen Anne Dell and Karen Garabedian,
2003 (Edmonton: Government of Alberta, 2003).        Canadian Community Epidemiology Network on
22
   Ontario Student Drug Use Survey, Drug Use         Drug Use 2002 National Report Drug Trends
Among Ontario Students 1977-2003 (Toronto:           (Ottawa: Canadian Centre on Substance Abuse,
Centre for Addiction and Mental Health, 2003), p.    2003), p. 89.
                                                     26
4.                                                      2003 Canadian Community Epidemiology
23
   British Columbia Ministry of Health Services,     Network Site Updates (October 2003 Annual
Crystal Meth and Other Methamphetamines: An          Meeting), p. 3.
                                                     27
Integrated BC Strategy, p. 22.                          Ibid.
BACKGROUND STUDY -- METHAMPHETAMINE 8

use of club drugs and associated ‘designer              students grades 7 to 12 between 1998 and
drugs’ among which methamphetamine is                   2003).31
often found.28
                                                        However, among the aforementioned
Moreover,          higher      levels      of           societal subgroups, methamphetamine use
methamphetamine consumption in these                    is increasing, particularly in areas of
locations are associated with what are                  Western Canada. In BC methamphetamine
identified as ‘at risk groups.’ Youth, and              related deaths have increased every year
particularly street youth are two groups that           since 2000 (please refer to Figure 1).32 The
can be discerned from the above                         17 cases of Leucoencephalopathy since
information. However, analysis into the                 2003 is an increase from 4 in 2002. 33 A
social context of the methamphetamine                   specialized detoxification clinic in Victoria
problem has yielded other identifiable                  has seen its admission for ‘crystal meth’
subgroups. These include: children or family            increase from 17 to 117 over the past 4
members associated with or in homes where               years. Another report states that more then
methamphetamine use or production is                    70% of all admissions into detoxifications
taking place; youth and young adults                    clinics in Victoria and Vancouver are for
between the ages of 14-29 including street              methamphetamine abuse with the average
youth; youth attending rave dance scenes;               age of admission at 16.34
young women with perceptual weight
problems; athletes and ‘super achievers’                Figure 1. Methamphetamine related deaths in
(ambitious students); the homeless; some                British Columbia: 2000-March 2004
segments of the homosexual community
including those attending sex clubs; sex                             12
trade workers; multiple-drug users; and
those     in    rural   communities    where                         10
methamphetamine is being manufactured                                8
and where the availability of cheap
                                                            Deaths

methamphetamine makes it the illicit drug of                         6
choice.29 The logic behind what places these
societal subgroups at a higher risk of                               4
methamphetamine use will be addressed in
                                                                     2
a later section.
                                                                     0
3) Demand Trends                                                          2000   2001   2002   2003   2004
                                                                                                      (Jan-
Prevalence of methamphetamine use                                                                     Mar)
appears to be low and stable among the
general population. Methamphetamine still               Source: British Columbia Ministry of Health Services,
                                                        Crystal Meth and Other Methamphetamines: An
ranks between fifth and seventh in Canada
                                                        Integrated BC Strategy 2004.
in terms preferred substance of abuse well
behind alcohol, tobacco, and marijuana. 30
Among the general youth population
methamphetamine use is for the most part                31
                                                            Ontario Student Drug Use Survey, Drug Use
stable with signs of decrease in Ontario                Among Ontario Students 1977-2003, p. 24; and
(between 1999 and 2003) and BC                          Lisa May et al., Healthy Youth Development:
(prevalence dropping from 5% to 4% in                   Highlights from the 2003 Student Health Survey,
                                                        p. 17.
                                                        32
                                                            British Columbia Ministry of Health Services,
                                                        Crystal Meth and Other Methamphetamines: An
                                                        Integrated BC Strategy, p. 22.
                                                        33
                                                           Colleen Anne Dell and Karen Garabedian,
28
   Ibid., pp. 6-7.                                      Canadian Community Epidemiology Network on
29
   British Columbia Ministry of Health Services,        Drug Use 2002 National Report Drug Trends
Crystal Meth and Other Methamphetamines: An             (Ottawa: Canadian Centre on Substance Abuse,
Integrated BC Strategy, p. 16.                          2003), p. 89.
30                                                      34
   Office of Drugs and Crime, World Drug Report             Jane Buxton, Vancouver Drug Use
2004, p. 177.                                           Epidemiology, pp. 42-45.
BACKGROUND STUDY -- METHAMPHETAMINE 9

In fact, in the majority of the cases stated             confidence, wakefulness, libido, alertness
above, the patients/victims are youth                    and well-being. Due to the body’s inability to
associated with one or more of the                       quickly    process    the   chemicals       in
aforementioned subgroups at risk. Similarly,             methamphetamine the ‘high’ can last up to
trends are surfacing in neighbouring Alberta             12 hours, which contrasts to the shorter
among relevant subgroups. In Toronto there               ‘high’ experienced from cocaine which the
is concern over the significant increase in              body is able to process much more quickly
the hospital discharge data classification of            (up to 50% of the substance is removed
dependent abuse of ‘other’, which is                     from the body within the first hour). 38 The
attributed to the increasing popularity of               longer-lasting high, combined with the
‘designer       drugs’        (in      which             cheaper price of methamphetamine, make it
methamphetamine is often found).35                       a very popular substitute for cocaine (poor
                                                         man’s cocaine).
Hence, while trends in methamphetamine
use among the general population seem                    The versatility in methods of consumption
stable and low, the concern over the abuse               also may remove the stigma that some may
of the drug among societal subgroups is                  have to experimenting with cocaine or
increasing as trends indicate a higher and               heroin. Unlike cocaine, which is snorted or
more frequent incidence of use. This pattern             smoked (if it is synthesized into ‘crack
is historically consistent with the beginnings           cocaine’), methamphetamine can be
of most methamphetamine ‘epidemics’. A                   smoked, snorted, injected, or orally
strong subculture of prevalent users and                 ingested.      This      versatility   makes
addicts is necessary to encourage the                    methamphetamine accessible to multiple
expansion of the illicit manufacturing of                drug environments. 39 The ability to orally
methamphetamine and creation of new                      ingest methamphetamine has allowed it to
markets for the drug.36                                  ‘piggy back’ on the popularity of ‘club drugs’
                                                         and ‘designer drugs’ which often come in an
4) Substitutes and Compliments                 to        ingestible pill form and have the same
   Methamphetamine                                       physiological effects as methamphetamine.

Methamphetamine is chemically similar to                 This has allowed methamphetamine                to
cocaine in the physiological response it                 compliment the success of Ecstasy in some parts
induces       in     the     human       brain.          of Canada. A chemical analysis conducted by the
                                                         Royal Canadian Mounted Police (RCMP) of
Methamphetamine (like cocaine) acts on the               drugs seized at rave dances between September
brain’s reward pathway, increasing the                   2001 and June 2002 showed that what most
release of neurotransmitters dopamine,                   people thought they purchased as Ecstasy
noradrenaline, and serotonin. 37 This yields             actually turned out to contain a variety of
an initial rush of pleasurable disposition that          mixtures. Only 24% of tablets and 11% of
is followed by feelings of prolonged                     capsules contained pure Ecstasy. The most
euphoria, increased levels of energy, self-              common        ingredient     mixed       in   was
                                                         methamphetamine (please refer to Figure 2).40 A
                                                         similar analysis was conducted again by the
35
   2003 Canadian Community Epidemiology                  RCMP of 356 samples seized in seven ‘raves’ in
Network Site Updates (October 2003 Annual                Montreal between October 2002 and April 2004.
Meeting), p. 7.                                          The results were congruent with those of the
36
   Division of Mental Health and Prevention of           earlier analysis; there is no relation between the
Substance Abuse, Epidemiology and Social
Context of Amphetamine-type Stimulant Use
                                                         38
(World Health Organization 1997), p. 12; and                British Columbia Ministry of Health Services,
Hiroshi Suwaki, Methamphetamine Abuse in                 Crystal Meth and Other Methamphetamines: An
Japan in Methamphetamine Abuse:                          Integrated BC Strategy, p. 23.
                                                         39
Epidemiologic Issues and Implications eds.                  National Institute on Drug Abuse, Community
Marissa A. Miller and Nicholas J. Kozel (National        Drug Bulletin: Methamphetamine (US
Institute on Drug Abuse research monograph               Department of Health and Human Services,
115, 1991), pp. 82-86.                                   1998).
37                                                       40
   Deidre Ah Shene, “Crystal Meth” in                       Jane Buxton, Vancouver Drug Use
Developments 23:2 (Spring 2003).                         Epidemiology, pp. 43, 55.
BACKGROUND STUDY -- METHAMPHETAMINE 10

logo, the colour or shape of the pill and the active          may    lead to future substitution  and
                                               41
ingredients that is found in those substances.                complimentary         effects    in  the
                                                              methamphetamine market. This may provide
Hence, methamphetamine’s close association                    additional routes for expansion.
with cocaine and club drugs (‘designer drugs’)

              Figure 2. Analysis of drugs seized at Raves by the RCMP: September 2001-June 2002

       MDMA, MA, K, Caf (3.64%)             MDMA, MA, K (1.82%)                 MDMA, MA, E/PE, DM, K (1.82%)
       MDMA, MA, E/PE, Caf (1.82%)          MDMA, MA, E/PE (3.64%)              MDMA, MA (9.09%)
       MDMA, E/PE (9.09%)                   MDMA, Caf (9.09%)                   MDA, MDMA, MA, K, Caf (12.73%)
       MDA, MDMA, MA, E/PE (5.45%)          MDA, MDMA, MA (5.45%)               MDA, MDMA, E/PE, Caf (1.82%)
       MDA, MDMA, Caf (1.82%)               MDA, MDMA (1.82%)                   MDA, MA, E/PE, DM, K (3.64%)
       MDA, MA, Caf (1.82%)                 MDA, MA (3.63%)                     MDA, E/PE (1.82%)
       MA, E/PE, Caf (1.82%)                MA, E/PE (1.82%)                    MA, COD (1.82%)
       MA, Caf (1.82%)                      MA, A, K (1.82%)                    MA, A (1.82%)
       K, Caf (1.82%)                       E/PE (7.27%)

       A       Amphetamine                             K       Ketamine
       Caf     Caffeine                                MA      Methamphetamine
       COD     Codeine                                 MDA     3,4-Dmethylenedioxyamphetamine
       DM      Dextromethorphan                        MDMA    Ecstasy;3,4Ðmethylenedioxyamphetamine
       E/PE    Ephedrine/pseudoephedrine

       Source: Vancouver Drug Use Epidemiology 2003

41
  Peter Rakobowchuk, RCMP, Health Canada
warn content, dosage of illegal designer drugs
unsafe in Canadian Press Wednesday, November
17, 2004. Retrieved on November 17, 2004:
http://www.canada.com.
BACKGROUND STUDY -- METHAMPHETAMINE 11

IV – SUPPLY, PRODUCTION, TRAFFICKING, AND MARKET MANIPULATION DYNAMICS

• Unlike     cocaine,     methamphetamine       is   • British Columbia and Alberta account for
  generally manufactured in the country of             the     majority    of     methamphetamine
  consumption, eliminating the need for                production in Canada. The majority of
  elaborate trafficking and smuggling networks.        methamphetamine is manufactured by
• Economic incentives, simplicity of synthesis,        independent producers, with significantly
  greater flexibility, and location of production      increasing     involvement        of   OCGs,
  drive methamphetamine supply.                        particularly the ‘Hell’s Angels’ OMG and
• There is a secular upward trend in the supply        Asian based OCGs.
  of methamphetamine with production and             • Smuggling      and     trafficking   networks
  consumption gradually expanding eastwards;           uncovered through joint US-Canadian law
  little evidence of production in the Maritime        enforcement efforts may indicate high
  Provinces, however.                                  degree of inter-connectivity between
• High profits and easy return on capital              methamphetamine markets and relevant
  investment reduce what were once prohibitive         OCGs in the US and Canada.
  financial barriers to entering the drug market.    • Market monopolization would require
                                                       control of precursor chemicals; at this
                                                       stage this remains highly unlikely.

1) Supply Dynamics                                     production may present strong incentives for
                                                       drug entrepreneurs and OCGs seeking
The factors that drive supply of                       higher profits from the drug trade.42
methamphetamine are similar to those of
other ATS substances. These include                    The simplicity of the synthesis process that
economic incentives, simplicity of synthesis,          renders methamphetamine (requiring only a
greater flexibility, and location of production.       few steps) also explains why a large number
                                                       of drug entrepreneurs choose to enter the
There are a number of economic incentives              ATS market. Methamphetamine production
associated       with   the    production     of       does not require a great level of
methamphetamine, but the main supply                   sophistication. 43 Most methamphetamine
push factor is the perception of high profits.         operations in Canada and the US are thus
Profitability of methamphetamine will be               ‘mom & pop’ operations (independent
discussed in a future section, however at              producers) using relatively primitive ‘kitchen
this point it is important to point out that the       laboratories’. Simplicity of method also
profit margin at the manufacturing level is            invites     experimentation    and     makes
quite high as the precursors, chemicals, and           clandestine manufacturing easier.44 Though
equipment are easily accessible, widely                OCGs may prefer more sophisticated
available, and relatively cheap.                       facilities in order to realize economies of
                                                       scale for their operations, the simplicity in
Furthermore,           manufacturing         of        production remains a constant.
methamphetamine takes place in the
country      of   consumption;     thus    the
manufacturer does not need to incur costs of           42
                                                          Expert Meeting on Amphetamine-type
trafficking and smuggling the product across           Stimulants Shanghai November 25-29, Policy
international boundaries. The low cost and             Options for Countermeasures, p. 5; and Office of
high profit factor is a defining characteristic        Drugs and Crime, Global Illicit Drug Trends 2003,
                                                       pp. 9, 47.
of     the    global   expansion     of  ATS           43
                                                          United Nations Drug Control Programme,
manufacturing and provides a good                      Amphetamine-Type Stimulants: A Global Review,
explanation of why illicit ATS manufacture             p. 44
                                                       44
and trafficking have grown so rapidly in the              Expert Meeting on Amphetamine-type
1990s,      and      why    methamphetamine            Stimulants Shanghai November 25-29, Policy
                                                       Options for Countermeasures, p. 5.
BACKGROUND STUDY -- METHAMPHETAMINE 12

The level of simplicity in the synthesis          2) Production
process also yields a greater level of
flexibility    in  the     manufacture     of     The manufacturing of methamphetamine in
methamphetamine        in   comparison     to     Canada is dominated by independent
traditional plant-based narcotics. While          producers           who          manufacture
cocaine and heroin are derived from one           methamphetamine for personal and local
source,     even     small   quantities    of     consumption. 47 These producers generally
methamphetamine        can    be   profitably     operate small, unsophisticated ‘kitchen
manufactured by using a number of                 laboratories’ either from their residences or
appropriate chemicals and techniques. 45          from a number of locations (refer to
Moreover, flexibility also applies to the         Environmental       Factors     for    further
movement of operations. Because of the low        information). These ‘mom & pop’ operations
level of sophistication associated with the       are the most common form of clandestine
manufacturing of methamphetamine the              laboratories and account for the majority of
operations can be hastily dismantled or           lab seizures in Canada and the US.
abandoned, only to be reassembled or
initiated elsewhere. The section on               In addition, there is significant evidence that
Environmental Factors elaborates on this          OCGs are involved in the production (and
point further.                                    distribution)    of   methamphetamine        in
                                                  Canada, even though it only accounts for a
Finally, location of production is an             fraction of the methamphetamine supply. 48
additional factor that drives supply. Unlike      The major OCG involvement is from
plant-based drugs such as heroin and              organized       motorcycle     gangs    (OMG)
cocaine, methamphetamine manufacturing            operating primarily in Western Canada.
generally takes place in the country of           Other OCGs involved include Asian based
consumption. Manufacturers tend to locate         OCGs (particularly Vietnamese drug rings)
themselves close to the area of distribution,     and various independent OCGs with no
reducing transportation costs and increasing      defining      characteristic    besides   their
profits. This also allows manufacturers to        involvement in the clandestine production
respond to shifts in the market through rapid     and dissemination of methamphetamine. 49
relocation to a new area. Freed of the need       Independent OCGs and the ‘Hell’s Angels’
for trafficking and smuggling networks,           OMG are also involved in precursor
methamphetamine operations can run more           chemical diversion networks.50
efficiently and with fewer personnel than
comparable cocaine or heroin networks.46          Moreover, surveys of laboratory seizures
                                                  indicate     that     the    majority      of
All these factors ensure that the                 methamphetamine production takes place in
methamphetamine         market   remains          Western Canada, with BC and Alberta
competitive, profitable and dynamic, and          accounting for the great majority of seizures
acts to reduce the risks involved in              of methamphetamine-producing laboratories
methamphetamine production. Most of all,          over the last six years (117 of 148). 51
as we shall explore shortly, it also              According      to    the    principles     of
encourages the involvement of OCGs.               methamphetamine markets in other part of
                                                  the globe, the closer one gets to a site of
                                                  manufacturing the greater the availability of
                                                  methamphetamine and thus, the lower the

                                                  47
                                                     Interview with RCMP, Tuesday October 5,
                                                  2004.
45                                                48
    United Nations Drug Control Programme,           Ibid.
                                                  49
Amphetamine-Type Stimulants: A Global Review,        Ibid.; and RCMP and DEA, Chemical Diversion
p. 44; and Office of Drugs and Crime, Global      and Synthetic Drug Manufacture (September
Illicit Drug Trends 2003, p. 47.                  2001), p. 9.
46                                                50
    United Nations Drug Control Programme,           Ibid.
                                                  51
Amphetamine-Type Stimulants: A Global Review,        Interview with RCMP, Tuesday October 5,
p. 44.                                            2004.
BACKGROUND STUDY -- METHAMPHETAMINE 13

price.52 Again, this suggests that production          methamphetamine         seized     by     law
in Western Canada is greater than in other             enforcement agencies. They are the same
regions, as methamphetamine price index                indicators used by the United Nations Office
confirms that on average a gram of                     on Drugs and Crime to produce their World
methamphetamine is cheaper in BC (mainly               Drug Report, who acknowledge that, in the
in the greater Vancouver area) than in other           absence of more accurate measures of
parts of Canada, particularly as one moves             supply, lab and methamphetamine seizures
East. The price differences are more                   remain our best indicators.56 While these are
pronounced when one searches for                       useful indicators of supply, they should not
quantities in excess of one ounce.53                   be taken as definitive and certain; some
                                                       caveats are in order. There is no method to
3) Trafficking and Smuggling                           control for the effect that a shift in law
                                                       enforcement focus toward curbing the
In the summer and fall of 2004 a series of             supply of methamphetamine may have on
large smuggling and trafficking networks               the number of seizures registered. A certain
were uncovered and dismantled that linked              increase in seizures may simply be the
OCG groups in Canada and the US. For the               result of increased law enforcement
most part these networks were involved in              attention to the problem, rather than
the diversion of precursor chemicals                   increased production. Thus, unless one can
(primarily pseudo-ephedrine) from Canada               ensure consistency in law enforcement
to the US, a practice that became more                 efforts, seizures remain at best an imperfect
prevalent in the mid-1990s, prompting the              proxy for levels of production.
introduction of Canada’s Precursor Control
Regulations in response. 54 Police also                Nonetheless, the numbers of laboratories
uncovered networks exporting finished                  seized producing methamphetamine show a
methamphetamine,         ephedrine     and             significant increase in the last 2 years. In BC
marijuana to the US, and importing cocaine             there were 10 lab seizures in both 2001 and
to Canada. 55 Given that, until the mid                2002 (down from 13 in 1999 and 17 in
1990’s, the methamphetamine market was                 2000). However, in 2003 the number was
entirely domestic in nature, the recent                back up to 16, and as of September 2004
seizures may also indicate a higher degree             there were 18 labs seized in BC. The same
of interconnectivity between the American              pattern is observed in Ontario where there
and Canadian methamphetamine markets,                  were 2 lab seizures in the successive years
and consequently between OCGs in the US                of 2000, 2001 and 2002, but an increase to
and Canada. More research is required                  8 lab seizures in 2003 and 3 as of
before this theory can be confirmed,                   September 2004 (please refer to Figure 3).57
however.
                                                       Alberta does not follow the trend. It had 4
4) Supply Trends                                       lab seizures in 2000 and 2 in 2001. In 2002
                                                       it led the country with the most lab seizures
The main indicators of supply trends are               becoming the only province to ever surpass
numbers of seizures of laboratories                    BC with 13 lab seizures to BC’s 10 that year.
producing methamphetamine (and their                   This was followed by 8 lab seizures in 2003
location), and      the   amounts     of               and 6 as of September 2004. So while lab
                                                       seizures in BC and Ontario decreased in
52
    Office of Drugs and Crime, Global Illicit Drug     2002, Alberta saw the greatest number of
Trends 2003, p. 48.                                    lab seizures in its history in that same year.
53
    Interview with RCMP, Tuesday October 5,            However, the subsequent years still saw
2004.                                                  higher numbers of lab seizures than the
54
    RCMP and DEA, Chemical Diversion and
                                                       period before 2002 (please refer to Figure
Synthetic Drug Manufacture (September 2001),
pp. 2-6; and Office of Drugs and Crime, Global         3).58
Illicit Drug Trends 2003, p. 89.
55
    Pablo Fernandez, Vast drug network likely
                                                       56
linked here in Sun Media Thursday, October 21,            Office of Drugs and Crime, World Drug Report
2004. Retrieved October 21, 2004:                      2004.
                                                       57
http://www.canoe.ca/NewsStand/EdmontonSun/                Numbers provided courtesy of the RCMP.
                                                       58
News/2004/10/21/pf-678752.html.                           Numbers provided courtesy of the RCMP.
BACKGROUND STUDY -- METHAMPHETAMINE 14

                                                                 Regina soon. In the rural areas of Manitoba
           Seizures in methamphetamine producing                 the methamphetamine situation is similar,
           laboratories peaked with a high of 4 in               with methamphetamine use reported in
           Quebec in 2003, up from 1 in 2002. Prior to           those areas where clandestine laboratories
           2002 Quebec registered 1 lab seizure in               are suspected to be located.61
           both 1999 and 2000, and 0 in 2001. As of
           September 2004 Quebec has again only 1                In Eastern (Maritime) Canada there is no
           lab seizure reported (please refer to Figure          significant evidence that methamphetamine
           3).59                                                 has made any inroads in to a drug market
                                                                 still heavily dominated by marijuana; the
           In the rest of Canada, there were some                substance of greatest abuse is still alcohol.
           remarkable and surprising discoveries of              However, in 2002, there was a strong
           clandestine methamphetamine producing                 presence of rave/club drugs reported in St.
           laboratories in new areas of the country.             John’s, Newfoundland, significantly higher
           Manitoba reported 2 lab seizures in 2000. In          than in the three preceding years. 62
           the period from 2002 to September 2004                Recalling the ability of methamphetamine to
           Manitoba reported 3 more (one in each                 compliment the success and thrive from the
           year) lab seizures. Saskatchewan was                  popularity of club drugs and ‘designer drugs’
           added to the list of provinces reporting              it is plausible that the supply of
           clandestine lab seizure this year with one as         methamphetamine has already reached the
           of September 2004 (please refer to Figure             shores of Newfoundland. It is not impossible
           3).60                                                 to envisage that Newfoundland (or another
                                                                 of the Maritime Provinces) may join the
           Figure 3. Methamphetamine producing
                                                                 other six provinces already reporting
           lab   seizures by   province: 1999-
                                                                 seizures     of     laboratories   producing
           September 2004
                                                                 methamphetamine.
   18
   16                                            BC              The other indicator of supply trends is
   14                                                            seizures of methamphetamine product.
                                                 Alberta
   12                                                            Canadian law enforcement agencies that
   10                                            Ontario         contributed to the data collected by the
    8
                                                 Quebec
                                                                 RCMP reported the seizure of 52.9
    6                                                            kilograms (kg) of methamphetamine in 2001
    4                                            Manitoba        with the additional seizure of 55,121 dosage
    2                                            Sask
                                                                 units (usually but not exclusively to pill form).
    0                                                            This was significant increase from the
        1999 2000 2001 2002 2003 2004                            previous two years which combined reported
                                                                 seizures of 25.8 kg of methamphetamine
Source: Royal Canadian Mounted Police 2004                       and only 3,266 dosage units. Since 2001 the
                                                                 reported seizures have declined (42.4 kg in
           As of September 2004 a number of                      2002 and 33.8 kg in 2003) and as of
           provinces were reporting the existence and            September 2004 only 13.6kg of seized
           seizure    of    clandestine     laboratories         methamphetamine product have been
           producing methamphetamine, stretching                 reported (please refer to Figure 3).63
           from BC to Quebec. This confirms the
           repeated warning that there is a
           disconcerting trend witnessing the supply of
           methamphetamine gradually moving east.
           From Saskatchewan, the newest member in
           the group reporting lab seizures, the RCMP
           report evidence of ‘crystal meth’ in the rural
           areas and anticipate its appearance in                61
                                                                    2003 Canadian Community Epidemiology
                                                                 Network Site Updates (October 2003 Annual
                                                                 Meeting), pp. 4-5.
           59                                                    62
                Ibid.                                               Ibid., p. 10.
           60                                                    63
                Ibid.                                               Numbers provided courtesy of the RCMP.
BACKGROUND STUDY -- METHAMPHETAMINE 15

                Figure 4. Methamphetamine seizures by               Figure 5. Methamphetamine seizures in
                kilogram as reported by Canadian Law                dosage units as reported by Canadian
                Enforcement: 1999-September 2004                    Law Enforcement: 1999-September 2004

                       60                                                                                            60000

                                                                         Methamphetamine Seizures
                                                                                                                     50000
                       50
Methamphetamine / kg

                                                                                                                     40000

                                                                                                    (dosage units)
                       40
                                                                                                                     30000
      seized

                       30                                                                                            20000

                       20                                                                                            10000
                                                                                                                         0
                       10                                                                                                    1999   2001   2003

                         0
                               1999   2001    2003
                                                                    Source: Royal Canadian Mounted Police 2004

                                                                    5) Profitability

                Source: Royal Canadian Mounted Police 2004          The manufacturing of ATS substances like
                                                                    methamphetamine presents a highly
                However, the picture is significantly different     profitable venture. As previously mentioned,
                with regards to the seized dosage units.            the location of production plays a significant
                While only 9,497 dosage units were seized           part in reducing the associated costs by
                in 2002 and 2003 combined, as of                    removing the need to fund the smuggling
                September 2004 there have been 34,541               and trafficking networks and expenses
                dosage units of methamphetamine reported            necessary to deliver the drug to the location
                seized. 64 This is a remarkable increase            of consumption. While there are still
                which may indicate a focus on supply of             associated costs with the manufacturing and
                methamphetamine in dosage unit form. It is          distribution of any illicit drugs (i.e.
                likely that this is a result from the surge in      precursors,         chemicals,     materials,
                popularity in ‘designer drugs’ (club/rave           equipment, labour costs, rent, depreciation
                drugs)       and       the      benefit    that     of equipment, bribery costs), they remain
                methamphetamine has enjoyed from this               significantly lower for ATS substances then
                popularity. This is consistent with the             for traditional narcotics.
                aforementioned trend in demand of certain
                societal subgroups and may reflect an               Previous economic studies on plant-based
                attempt to compliment their preference in           drugs have shown that between roughly half
                drug consumption method (ingestion in pill          and two thirds of the final retail price
                or capsule form).                                   represents the value added in the country of
                                                                    final consumption. In contrast, for ATS
                                                                    substances almost all of the total retail price
                                                                    amounts to value added in the country of
                                                                    final consumption. Hence, clandestine drug
                                                                    synthesis has enormous profit potential.65

                                                                    In the case of methamphetamine, at the
                                                                    manufacturing level, the average profitability
                                                                    is estimated at 2,6%. At the distribution level
                                                                    the average profitability is estimated at

                                                                    65
                                                                      United Nations Drug Control Programme,
                                                                    Amphetamine-Type Stimulants: A Global Review,
                64
                       Ibid.                                        p. 84.
BACKGROUND STUDY -- METHAMPHETAMINE 16

485%. 66 Of course, the profits will vary                 7) Methamphetamine             Market       and
depending on the availability of chemicals,                  Organized Crime
the purity of the methamphetamine, the
regions of the country where the drug is                  The infiltration of Mexican criminal
manufactured and sold, and the size and                   organizations and drug trafficking networks
sophistication of the lab.67                              into the US methamphetamine market
                                                          provides some insights into the Canadian
On average, less then one kilogram of                     situation. The take-over of manufacturing
methamphetamine sold on the illicit market                and distribution in major methamphetamine
typically pays for the initial investment of              markets in the US by Mexican criminal
setting-up     a   small-scale     clandestine            organizations was facilitated by two factors.
laboratory.68 High profits and easy return on
capital investment reduce what may often be               First, their familiarity with the necessities of
prohibitive financial barriers to entering the            the manufacture and trade of other illicit
drug market, and along with the other                     drugs, and extensive involvement in highly
previously       mentioned          incentives,           organized and well established cartels
compensate for most perceived risks                       provided Mexican criminal groups with
associated       with       methamphetamine               readily disposable capital, sophisticated and
production.                                               elaborate trafficking networks, diverse and
                                                          strategic affiliations, and proficient criminal
                                                          knowledge. 70          This     facilitated  the
6) Potential for Market Monopolization                    appropriation of the methamphetamine trade
                                                          into their operations.
The greatest operating cost in a
methamphetamine production operation                      Second, large Hispanic communities in the
remains ensuring a steady supply of                       south western regions of the US and in the
chemicals and precursors. 69 Only by                      majority of the key metropolitan areas
controlling the available supplies of these               provided the necessary beachhead from
products would any one group be able to                   which to begin clandestine operations and
monopolize the market.                                    access consumption markets.

Monopoly remains highly unlikely at this                  Despite concern over the presence of
point as precursors and chemicals remain                  individuals with links to Mexican criminal
available through diversion from licit                    organizations in Western Canada, there is
sources. Furthermore, low level production,               no evidence that Hispanic crime groups
such as that practiced by most independent                have       infiltrated   the      Canadian
‘mom & pop’ operations, does not require                  methamphetamine market. 71 Neither is the
the large-scale diversions of precursors that             prospect of their penetration likely at this
some of the more elaborate and                            point due to the complete absence of the
sophisticated operations operated by OCGs                 second factor.
rely     upon.      Hence,       independent
manufacturers will still be attracted by the              However, there does exist the possibility that
same incentives as OCGs to enter the                      a similar phenomenon may occur in the
methamphetamine market.                                   Canadian       methamphetamine         market
                                                          involving those OCGs involved in marijuana
                                                          grow operations. These OCGs possess the
                                                          level of organization, sophistication, capital,
                                                          established networks and contacts, and
                                                          criminal     knowledge      necessary       to
66
   Ibid., pp. 84-85; and Office of Drugs and
Crime, Global Illicit Drug Trends 2003, p. 50.
67
   Michael S. Scott, Problem-Oriented Guides for
                                                          70
Police Series Guide No. 16: Clandestine Drug                 Susan Pennell et al., Meth Matters: Report on
Labs, p. 13.                                              Methamphetamine Users in Five Western Cities,
68
   Office of Drugs and Crime, Global Illicit Drug         p. 3.
                                                          71
Trends 2003, p. 50.                                          Interview with RCMP, Tuesday October 5,
69
   Ibid.                                                  2004.
BACKGROUND STUDY -- METHAMPHETAMINE 17

successfully integrate the methamphetamine
trade into their operations.

Evidence suggests that this phenomenon is
already underway. Already some law
enforcement members in BC have reported
observing a growing trend which they have
termed ‘M&Ms’. This trend involves the
simultaneous operation of a marijuana grow
on one floor of a house, and the
manufacturing of methamphetamine on
another floor by a single OCG. BC law
enforcement officials claim most of the grow
operations are run by either the ‘Hells
Angels’      or     Vietnamese        criminal
organizations; these groups in turn trade the
profit from such operations for harder drugs
or guns.72

The      emergence      of    large  criminal
organizations dominating ATS markets
around the world is not a surprising
phenomenon. They are driven by the same
incentives that draw out individual
entrepreneurs. Unlike individual producers
however, larger groups are more flexible
and are able to identify and exploit any
lucrative business opportunities, as well as
any flaws in law enforcement efforts. Their
ability to effectively organize and structure
manufacturing and distribution processes
allows OCGs to produce more and better
quality drugs at lower costs. Their
willingness to cooperate and collaborate
with other OCGs increases the scope and
range of their operations. 73 OCG
involvement in the methamphetamine
market makes its expansion more likely and
its impact on the Canadian public more
severe.

72
   Janis Cleugh, PoCo wants another look at
grow op regulations in Tri-City News Saturday,
November 20, 2004. Retrieved November 22,
2004:
http://www.tricitynews.com/portals-
code/list.cgi?paper=74&cat=23&id=332654&mo
re=.
73
   Office of Drugs and Crime, Global Illicit Drug
Trends 2003, p. 9.
BACKGROUND STUDY -- METHAMPHETAMINE 18

V – SOCIETAL FACTORS

•   There are a number of identifiable and             •    Instrumental use may lead to chronic
    vulnerable societal subgroups: street youth             use, which involves the habitual heavy
    and the homeless; sex trade workers;                    use of methamphetamine as is often the
    teenage girls (for weight loss); ambitious              case      with   socially     marginalized
    students and professionals; ‘ravers’ and the            populations.
    youth party scene; certain segments of the         •    Multiple drug users are the group most
    gay community; and multiple drug users                  frequently connected with chronic use,
    (particularly cocaine addicts).                         and such patterns of use often lead to
•   Societal subgroups display a number of                  higher risk of contracting HIV/AIDS and
    patterns of methamphetamine use including               hepatitis B and C.
    instrumental, chronic, recreational, or            •    Sub-cultural/ recreational use involves
    multiple drug use.                                      the exploiting of the drug’s stimulant
•   Instrumental use involves exploiting the                properties which provide euphoria and
    stimulant or anorectic properties of the drug           boundless energy, the capacity to
    to achieve desired goals, and is globally the           increase sociability, allowing the user to
    most common pattern of methamphetamine                  more easily bond in their social network.
    use.

1) Who Uses Methamphetamine?

Historically, in the North American context,               Among these subgroups it is possible to
the portrait of a methamphetamine was                      draw       on     particular    patterns    of
usually white male, blue-collar workers who                methamphetamine use, which are essential
used it as a stimulant. 74 However, the                    in understanding why certain societal groups
portrait has evolved over time to include a                are labelled ‘at risk’. These patterns include
number       of    groups     with    differing            instrumental use, chronic use, and sub-
characteristics, to the point where to paint a             cultural/recreational use. Such patterns,
single portrait is now impossible. Current                 however, are not necessarily fixed or stable.
trends indicate a broadening of usage most                 Individuals may begin methamphetamine
likely due to the wide appeal of the drug to               use for instrumental or recreational reasons
groups that are drawn to it under different                and      subsequently       develop    chronic
circumstances.                                             symptoms.75

As aforementioned, there are a number of                   2) Instrumental Use
identifiable vulnerable societal subgroups.
These subgroups include, but are not limited               Historically and globally, this is the most
to: street youth and the homeless; sex trade               common pattern of methamphetamine use.
workers; teenage girls (for weight loss);                  This involves exploiting the stimulant or
ambitious students and professionals;                      anorectic properties of the drug to achieve
‘ravers’ and the youth party scene; certain                desired goals. Methamphetamine, in it
segments of the gay community; and                         various forms and under its many names,
multiple drug users (particularly cocaine                  may be consumed by long distance drivers,
addicts).                                                  students, professional, and night workers to

74
   British Columbia Ministry of Health Services,
Crystal Meth and Other Methamphetamines: An
                                                           75
Integrated BC Strategy, p. 23; and National                   Division of Mental Health and Prevention of
Institute on Drug Abuse, Community Drug                    Substance Abuse, Epidemiology and Social
Bulletin: Methamphetamine (US Department of                Context of Amphetamine-type Stimulant Use, p.
Health and Human Services, 1998).                          7.
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