Prepared by the Royal Canadian Mounted Police (RCMP), this report describes the drug situation and activities in Canada for 2003. The report is based on information and intelligence attained from investigations and seizures conducted by the RCMP, as well as various Canadian agencies and departments involved in drug enforcement. Drug activity is presented on the following drugs: cocaine, heroin, opium, marijuana, liquid cannabis resin, hashish, synthetic drugs, and khat. General information covers the areas of concealment, international issues, supply, demand, major seizures, transit countries, smuggling methods, and trafficking organizations. Select findings from the report include: (1) most of the heroin available continues to originate from Southeast and Southwest Asia; (2) marijuana cultivation continues to spread; (3) the importation of ecstasy from Europe to Canada continues at a significant level; and (4) methamphetamine use, trafficking, and production are of increasing concern across the country. Tables and appendix