Kahnawake to regulate aboriginal tobacco trade
Makers and sellers of cigarettes would be subject to fines
MONTREAL — Kahnawake’s band council will license the local cigarette trade before the end of this sum- mer, according to Grand Chief Joe Norton.
Under provisions outlined by the Kahnawake Tobacco Law, the industry’s stakeholders will have to submit to health and safety rules, set prices and quality control in order to obtain a license to sell cigarettes on the Mohawk territory. Though the tobacco trade has been an economic juggernaut in Kahnawake for over 20 years — employing as many as 2,000 people on the reserve — this is the first attempt at regulation.
“We need to make sure that both the customers and people in the industry are protected,” Norton said. “I know it’s an odd thing to say about a product that’s dangerous but we need to ensure the best practices are followed. … It’s for the best of the community.”
Because the Mohawks have territories in both Canada and the United States, they import much of the tobacco from their territories in the south and have essentially cornered the market on aboriginal cigarettes.
The move toward regulation in Kahnawake comes as provincial and federal police continue a crackdown on so-called contraband cigarettes. Though it’s legal for First Nations to grow and sell tax-free tobacco on reserves across the country, it’s a crime for non-aboriginals to buy the discounted cigarettes.
Once people leave the reserve with aboriginal tobacco, they’re subject to strict fines and — in the case of repeat offenders — jail time.
Kahnawake’s tobacco law calls for a nine-person committee to oversee ev- ery aspect of production — from the field where the tobacco is grown to the cigarette factories and, ultimately, the point of sale. The committee can conduct surprise inspections in factories, levy fines of up to $20,000 and even revoke someone’s license.
Money collected through licensing fees and fines will be funnelled into an account at the Kahnawake Caisse Populaire. Those funds will bankroll the commission, legal fees associated with fighting provincial or federal tobacco charges and social programs.