Author: Hazel Norman

Thailand Reverses Course And Will Regulate Cannabis Instead Of Prohibit It

Written by Hazel Norman on July 30, 2024. Posted in Policy.

In recent years Thailand has served as arguably the wildest nation on earth from a cannabis public policy observer standpoint. For many decades, Thailand had some of the harshest cannabis laws on the planet, which is why it was such a tectonic shift when Thailand decriminalized cannabis in June 2022.

Since June 2022, cannabis commerce has increased across many parts of Thailand, and the country is now a top international cannabis tourism destination. The increase in cannabis activity has resulted in calls by Prime Minister Srettha Thavisin to reverse course and reclassify cannabis as a narcotic, even though Thailand’s cannabis policies are working as intended.

Thailand’s historic cannabis policy shift in 2022 was designed to pave the way for the nation’s emerging cannabis industry to become a regional and international cannabis industry leader. Every household in the entire country could sign up initially to legally cultivate low-THC cannabis plants, which a reported 1.1 million citizens of Thailand have done.

During Thailand’s historic change in 2022, the nation’s Public Health Minister indicated that there would be no plant limit for the government’s cannabis cultivation program. Thailand’s government also gave away over 1 million cannabis seeds directly to households that signed up for the program.

A broad spectrum of government agencies in Thailand agreed to do their part to push Thailand’s emerging cannabis industry forward after the 2022 policy change. Researchers estimate that Thailand’s 2022 policy change resulted in roughly 12,000 cannabis dispensaries opening nationwide. The dispensaries operate on three-year licenses from the Department of Thai Traditional and Alternative Medicines and employ an estimated 60,000 people.

Mere weeks ago, Thailand was set to reclassify cannabis as a narcotic. However, in recent days Prime Minister Srettha Thavisin indicated that his prohibition policy pursuit would be abandoned, and instead of re-banning cannabis in Thailand, lawmakers would seek to properly regulate the nation’s emerging industry.

“According to the source, Srettha instructed Somsak to push for a bill to regulate the use of marijuana instead of reinstating the plant on the list of Category 5 Narcotics. The aim of the bill should be to ensure marijuana is used for medical purposes, research and for certain products.” stated The Nation in its local reporting.

Thailand was at risk of being the first nation in modern history to decriminalize cannabis and then re-criminalize it. Cannabis opponents around the globe were starting to point to Thailand as ‘evidence’ of ‘failed cannabis reform.’ They will now have to pivot their arguments, which will be no easy task given the fact that cannabis policy modernization is succeeding in many parts of the world.

Currently, cannabis is expressly legal for adult use at the national level in Uruguay, Canada, Malta, Luxembourg, Germany, and South Africa. Additionally, regional adult-use cannabis commerce pilot programs are operating in the Netherlands and Switzerland, and cannabis is legal for adult use in 24 U.S. states and Washington D.C.

Thailand’s cannabis policy differs from the previously mentioned jurisdictions in that only low-THC cannabis varieties are permitted.

Court Case Challenges Japan’s Strict Cannabis Laws

Written by Hazel Norman on July 23, 2024. Posted in Policy.

When it comes to cannabis policy reform efforts, there is no ‘one-size-fits-all’ approach. The most straightforward way to achieve cannabis reform is when lawmakers draft, approve, and implement a measure. However, that is not always possible, as many lawmakers around the globe continue to cling to failed cannabis prohibition.

One of the most popular ways to get around anti-cannabis politicians is through citizen initiatives or referendums in which ordinary citizens collect enough signatures to force a vote on cannabis policy reform. Collecting signatures to force a vote has proven very successful in the United States at the state level.

Another route that has yielded results comes in the form of legal challenges. When someone is subjected to prohibition enforcement they are usually afforded the right to challenge such policies in court, and while court decisions are not as good as the passage of bills by lawmakers, they provide some level of protection to consumers and patients.

Landmark cannabis court rulings were previously issued in several countries, including Spain, Italy, South Africa, and Mexico. A recent example can be found in Brazil, where the nation’s Supreme Court determined that personal cannabis possession should not be a crime.

Japan is home to one of the strictest set of cannabis policies on earth. Late last year, Japan lifted its nationwide ban on the importation of cannabis-derived medications, although the medications can only be used in very limited circumstances.

Coupled with the lifting of importing cannabis-derived medications, Japan also approved new penalties for consuming cannabis. Under the new guidelines, people caught having consumed cannabis can face up to seven years in prison in Japan.

Ryujiro Oyabu, a 52-year-old Japanese pottery artist, was pulled over by police in Japan on August 8th, 2021, and found to be in possession of three grams of cannabis. Oyabu is reportedly fighting the possession conviction with the assistance of constitutional lawyer Hidehiro Marui who argues that cannabis prohibition is unconstitutional.

If the challenge succeeds, it could have a major impact on Japan’s cannabis policies.

“His team plans to argue that since marijuana is now recognised as a medicine, the government must elaborate further and present scientific evidence of its dangers, by which they hope to undermine the principles behind criminalisation.” stated iNews in its original coverage.

Only time will tell if Japan’s top court is willing to consider the case, and if so, whether or not the challenge succeeds. Fortunately, there are many examples now from around the globe of such legal challenges succeeding.

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Israel May Apply Import Fees On Canadian Cannabis

Written by Hazel Norman on July 15, 2024. Posted in Business, Policy.

Israel’s government is considering imposing import fees on medical cannabis products imported from Canada. Israel previously launched an “anti-dumping” investigation to determine if Canadian cannabis imports were hurting the nation’s domestic industry. In the fiscal year 2023, Israel imported about 21,000 kilograms of medical cannabis products from Canada’s emerging legal cannabis industry.

The investigation’s preliminary findings seem to have determined that prices for Canadian cannabis have impacted Israel’s medical cannabis industry and that a proposed ‘fix’ will come in the form of import fees.

A final decision on whether to implement import fees on Canadian medical cannabis products is expected sometime later this year. Per initial reporting by StratCann:

In the course of the investigation, it was determined that the large volume of cannabis sold into the Israeli medical market from Canada was having a significant impact on both the local market and domestic companies’ ability to compete.

These products, determined Tal’s report, were sold at lower prices that, he argues, do not reflect the normal course of business and at prices that are lower than production costs or from their prices in the Israeli market, especially given the additional costs of exporting cannabis from Canada.

StratCann reports that roughly 80% of cannabis imported by Israel currently comes from Canada. The remaining imports reportedly originate from Portugal, Uruguay, and Uganda. Israel’s investigation “determined that a fair price for Canadian cannabis sold into the Israeli market was about $2-8 a gram” according to StratCann.

Israel’s legal medical cannabis industry is in a state of contraction right now according to domestic coverage, with The Israeli Cannabis Magazine reporting that “after a record of over 140,000 patients in January 2024, in the last six months the number of medical cannabis license holders in Israel dropped by about 8% to 128,355 as of today, the beginning of July 2024.”

German Federal Ministry Of Food And Agriculture Publishes Draft Industrial Hemp Bill

Written by Hazel Norman on July 15, 2024. Posted in Policy.

According to the German Cannabis Business Association (BvCW), the German Federal Ministry of Food and Agriculture has published a draft industrial hemp bill that would modernize policies pertaining to the cultivation and handling of industrial hemp in Germany.

“The aim of the planned Industrial Hemp Liberalization Act (NLG) is to eliminate legal uncertainties and create new fields of activity in the industrial hemp sector. The draft deletes the intoxication clause (“abuse clause”) and allows the indoor cultivation of industrial hemp. This is intended to promote sustainable raw materials and support climate protection. However, the regulation excludes the consumption of cannabis products for intoxication purposes.” BvCW stated in an email this week (translated from German to English).

“The plan is intended to provide greater legal certainty and more fields of activity for the industrial hemp sector. Cannabis products intended for consumption for intoxicating purposes, so-called edibles, will not be permitted under the Industrial Hemp Liberalization Act.” the measure states (translated from German to English).

“The plan will in particular remove the so-called abuse clause and eliminate the associated legal uncertainty when dealing with industrial hemp. In addition, the indoor cultivation of industrial hemp will be permitted as a new field of activity.” the measure also states.

The Industrial Hemp Liberalization Act also points out that “there are no alternatives to the plan, because agricultural subsidies such as direct payments from the European Union for areas on which industrial hemp is grown have not led to the hoped-for increase in the area under cultivation in Germany.”

“In order to promote industrial hemp in Germany, the possibilities for cultivation must be expanded and the requirements for handling industrial hemp must be relaxed.” the bill’s text states.

In May 2024 at the last parliamentary evening in the House of Agriculture and Food Industry, Federal Agriculture Minister Cem Özdemir (Greens) spoke publicly in favor of modernizing Germany’s hemp policies. Part of Minister Özdemir’s public statements included the announcement of the abolition of the intoxication clause.

“Imagine if dealers and producers of non-alcoholic beer were subjected to raids and punished because they could distill a schnapps from the remaining alcohol. In practice, such a complex extraction does not take place with industrial hemp,” said BvCW managing director Jürgen Neumeyer at the time. “This senseless noise clause has increasingly led to economic damage and bankruptcies in recent years. The abolition is urgently needed and we are therefore very pleased! This is an important step towards re-establishing the German industrial hemp industry. We look forward to a draft from the BMEL and will continue to support the parliamentary process constructively.”

Cannabis advocates have long pushed for this type of reform, including in the lead-up to the passage of the new CanG bill. Unfortunately, opponents were able to maintain the status quo under the premise that consumers could make intoxicating products out of hemp.

“If access to THC-containing flowers is to be made possible through clubs and home cultivation anyway, why should anyone go to the trouble of extracting low doses of THC from CBD flowers for several hours in their own home workshop?” Krautinvest.de pointed out in its initial reporting.

“Speaking at the International Cannabis Business Conference Berlin last year, industry veteran and President of EIHA Daniel Kruse said: “I would simply cancel this clause. All stakeholders will advocate for its abolition.” Business of Cannabis stated in its initial reporting.

“The debate about the ‘misuse of hemp’ needs to be brought to an end. Hemp has huge potential if the clause is abolished. Industrial hemp would lead to more sales than medical and recreational put together in Germany.” Daniel Kruse also stated at the International Cannabis Business Conference in Berlin.

According to BvCW, the Industrial Hemp Liberalization Act “is now being coordinated between departments, so statements on this can probably be submitted soon. The BvCW is now preparing a statement on this.”

In addition to causing headaches in Germany, the lack of comprehensive hemp and CBD industry reform has also caused similar issues throughout Europe.

Cannabis Cultivation Associations Moving Forward In Lower Saxony

Written by Hazel Norman on July 8, 2024. Posted in Policy.

Cannabis cultivation associations appear to be moving forward in Lower Saxony, with local media outlet Frankfurter Allgemeine Zeitung reporting that Agriculture Minister Miriam Staudte delivered the first approved permit to “Cannabis Social Club Ganderkesee” (translated from German to English) in the district of Oldenburg.

“With regard to consumer protection, it is clear to me: By allowing cultivation by associations, risks posed by illegally sold cannabis, such as excessive THC levels, can be avoided.” stated Minister Staudte according to Frankfurter Allgemeine Zeitung.

So far, 45 cannabis cultivation associations have registered to start applying for a permit in Lower Saxony, 16 of which have reportedly completed their applications. Cannabis cultivation associations became legal in Germany as of July 1st, although bureaucratic issues hampered an immediate rollout.

North Rhine-Westphalia is another area of Germany that is already accepting applications for cannabis cultivation associations, albeit “only a few” so far according to local reporting from ASB Zeitung.

“In North Rhine-Westphalia, a few Cannabis growing associations filed applications for permits starting July 1st, as revealed by a dpa survey of the responsible district administrations.” stated ASB Zeitung.

“According to a spokesperson, the first applications have been submitted in the Regierungsbezirk Duesseldorf, but a specific number could not yet be named by the authority. Three applications have been filed at the Bezirksregierung Köln by Tuesday, and one in Detmold. At the Bezirksregierung Arnsberg, there were initially “three incomplete applications,” according to a spokesperson. The Bezirksregierung Münster reported no applications yet.” ASB Zeitung also stated.

German cannabis cultivation associations have to adhere to various rules, including limiting membership to a maximum of 500 members and restricting sales to 50 grams per member a month (30 grams for members 18-20 years old). Clubs will also be permitted to sell cannabis clones and seeds.

In a recent nationwide survey conducted in Germany by Pronova BKK, 44% of self-reported ‘regular’ cannabis consumers indicated that they plan to join one of the country’s cannabis cultivation associations once they launch in their respective jurisdictions. Another 27% of ‘occasional’ cannabis consumers also indicated that they plan to join an association.

The Pronova BKK survey involved 1,000 people in Germany aged 18 and over and was conducted in May 2024. The survey also determined the following (translated from German to English) about Germany’s cannabis consumer base:

Over a quarter of Germans consume cannabis at least occasionally, and one in ten consumes it weekly
More than half of Generation Z consumes cannabis at least occasionally
For a third of cannabis consumers, legalization does not influence consumption behavior
Among younger respondents under 45 years of age, one in ten has increased consumption since legalization
Eight percent of non-users are considering growing their own cannabis at home

Among self-reported ‘regular’ cannabis consumers participating in the survey, 51% selected “Yes, I can imagine having my own cannabis to grow at home” when asked about home cultivation. Another 40% of ‘occasional’ cannabis consumers also selected that option in the survey.

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Thailand Committee Votes To Reclassify Cannabis As A Narcotic Effective January 1st

Written by Hazel Norman on July 8, 2024. Posted in Policy.

The wild cannabis public policy ride continues in Thailand where a key committee voted this week to officially reclassify cannabis and hemp as a narcotic in the country. Thailand adopted a historic cannabis reform measure in June 2022 that removed cannabis from the nation’s narcotics list.

Starting January 1st, 2025, cannabis will be reclassified as a narcotic in Thailand according to the committee-approved plan, and not just cannabis varieties that are high in THC. Even floral hemp that is low in THC will be classified as a narcotic in Thailand. Per excerpts from Bangkok Post:

The resolution stated that cannabis and hemp are to be regarded as narcotic plants except for their branches, roots and seeds. Cannabis buds and any materials containing more than 0.2% tetrahydrocannabinol (THC) will also be classified as narcotics.

“If the Office of the Narcotic Control Board agrees with our conclusion, the next step will be for the Food and Drug Administration to amend any cannabis-related laws and set up criteria for how the plants can be used.

The potential law reversal in Thailand comes at a time when cannabis policy modernization efforts are gaining momentum in other parts of the world. The first provisions of Germany’s adult-use legalization law took effect on April 1st, 2024, and South Africa recently adopted a limited recreational cannabis legalization measure the following month.

In addition to Germany and South Africa, cannabis is also legal for adult use in Uruguay (2013), Canada (2018), Malta (2021), and Luxembourg (2023). Regional adult-use cannabis commerce pilot trials are operating in the Netherlands and Switzerland, and nearly half of the states in the U.S. have approved recreational cannabis legalization measures.

Thailand’s expected policy change serves as a sobering reminder to cannabis advocates around the world that there is still a considerable amount of work to do in order to not only ensure that harmful cannabis prohibition policies are eliminated, but also, that the policy changes remain in place.

German Legal Cannabis Market Projected To Reach $4.6 Billion By 2034

Written by Hazel Norman on July 1, 2024. Posted in Business.

The legal German cannabis market is projected to reach an estimated $4.6 billion in value by 2034 according to a new market analysis by researchers at The Niche Research. The market analysis predicts that Germany’s legal cannabis market will experience a compound annual growth rate (CAGR) of 17.2% between 2024 and 2034.

Germany implemented the first provisions of its national adult-use cannabis legalization law on April 1st, and the home cultivation sector is already increasing in size at an exponential rate. According to a recent survey by Pronova BKK, 51% selected “Yes, I can imagine having my own cannabis to grow at home” when asked about home cultivation. Another 40% of ‘occasional’ cannabis consumers also selected that option in the survey.

A separate survey by YouGov found that 7% of surveyed German adults have already purchased cannabis seeds or clones, and another 11% reported that they will in the future. Cannabis seed banks across Europe have reported a significant sales spike due to German home cultivation legalization.

Medical cannabis was already a huge industry in Germany prior to adult-use legalization, with the country being home to Europe’s largest medical cannabis market. However, part of the CanG law involved the removal of cannabis from Germany’s Narcotics List, and with it, caps on domestic medical cannabis production. Germany imported a record 32,398kg of medical cannabis products in 2023, up 26.6% from 2022.

One could easily argue that the biggest winner of German recreational legalization so far is the nation’s medical cannabis industry. Doctors can more easily prescribe medical cannabis in Germany thanks to the CanG law, and the medical cannabis supply chain is more streamlined than ever. The changes are expected to boost Germany’s medical cannabis base from 0.03% to 1% of Germany’s population in the coming years.

Previous projections for Germany’s emerging cannabis industry include one by Heinrich Heine University Dusseldorf which estimated that adult-use legalization will create 27,000 new jobs in Germany, although that projection may prove to be too conservative as time goes along.

Consider the fact that North Rhine-Westphalia alone is planning on permitting up to 3,000 social cannabis clubs, each able to serve up to 500 members. Every one of those social clubs will create jobs, and that is just one sector of the industry in one region of Germany. If the nation’s medical cannabis industry continues to surge as social clubs and regional pilot projects launch this year, the economic potential of Germany’s emerging industry will be enormous.

Germany’s cannabis industry is currently estimated to be worth nearly 1.2 billion euros according to Euromonitor International. Euromonitor estimates that the emerging global cannabis industry is currently worth 51.4 billion euros, with that figure estimated to top 60 billion in 2025.

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Brazil’s Supreme Court Decriminalizes Personal Cannabis Possession

Written by Hazel Norman on July 1, 2024. Posted in Policy.

Brazil’s top court issued a landmark ruling this week, determining that the nation’s cannabis prohibition policies toward individual consumers possessing a personal amount of cannabis are unconstitutional.

Deliberations began on the personal cannabis possession case in 2015. A majority of the justices on Brazil’s Supreme Court ruled in favor of decriminalization. In their decision, the justices made it clear that it only applies to individual consumers and not distributors. What constitutes a ‘personal amount’ of cannabis in Brazil is yet to be specifically defined.

This week’s ruling builds on previous decisions in Brazil, such as a ruling in October 2023 that determined cannabis odor alone does not justify searching an individual’s home. A decision in March 2023 granted a registered NGO permission to cultivate medical cannabis domestically in Brazil after the government refused to grant permission.

In June 2022, Brazil’s top Court ruled in favor of three patients who sought to cultivate their own cannabis.

The ruling in Brazil this week is somewhat similar to court decisions rendered in a handful of other nations. In October 2018, Mexico’s Supreme Court deemed the nation’s prohibition policies against personal use to be unconstitutional.

In 2018 South Africa’s Supreme Court issued a similar ruling as Mexio’s, and in 2019 Italy’s Supreme Court ruled against personal cannabis cultivation prohibition.

Brazil now enters a growing global debate about what constitutes ‘legalization’ or ‘decriminalization’ and which nations fall into which category. Brazil’s ruling this week provides for some protections for individuals, however, it’s clearly not the same as having codified adult-use laws.

Currently, Uruguay, Canada, Malta, Luxembourg, Germany, and South Africa have officially adopted laws that expressly protect adult consumers who possess and use cannabis. Law enforcement is expressly prohibited from going after adult consumers who are within the parameters of those nations’ cannabis laws.

Brazil is in a similar category as Mexico where case law is such that cannabis prohibition pertaining to individual consumers is unconstitutional, but also, lawmakers have not passed a new measure to officially replace old policies with new ones. The saga in Mexico has gone on for over 5 years and still no changes. Only time will tell if the same proves to be true in Brazil.

Mexico Regulators Authorize The Cultivation Of Low-THC Hemp

Written by Hazel Norman on June 24, 2024. Posted in Policy.

Mexico’s Federal Commission for the Protection against Sanitary Risks (COFEPRIS) has reportedly authorized the cultivation of low-THC hemp plants (less than 1% THC content). The announcement came in the form of a letter from the regulatory entity to Semillas Endemicas Mexicanna SA de CV, as originally reported by El Planteo.

“The official document acquired by El Planteo, dated November 17, 2023 but delivered to the company just a few days ago, details the conditions under which Semillas Endemicas Mexicanna SA de CV can operate. The permit includes the import of seeds, the processing of hemp for the extraction of cannabidiol (CBD), and the marketing of cannabidiol oil as long as the THC content in the plants does not exceed 1%.” El Planteo stated in its coverage.

“The requested health authorization must guarantee that the plant produces concentrations equal to or less than 1% of THC and under the monitoring, control and safety conditions that the competent authority deems appropriate to protect health and public order.” the regulator’s letter reportedly stated.

Mexico has a long history with the cannabis plant, with many of the nation’s unregulated cannabis farms historically supplying markets in the United States. In recent years, as cannabis policy modernization has spread across the United States, less cannabis has been smuggled into the U.S. from Mexico.

In December 2021, Mexico’s Supreme Court deemed barriers to low-THC cannabis production to be unconstitutional. The 2021 decision followed a previous Supreme Court decision in 2019 that deemed prohibition policies pertaining to the personal use of cannabis to be unconstitutional.

Despite the landmark decisions in Mexico, there was still the regulatory hurdle of COFEPRIS granting its authorization for low-THC hemp production. The issuance of authorization to Semillas Endemicas Mexicanna SA de CV by COFEPRIS marks a major milestone for Mexico’s emerging legal industry.

COFEPRIS emphasized that the issuance of this one authorization does not open the floodgates to unfettered low-THC hemp production in Mexico.

According to an April 2022 market analysis, New Frontier Data determined that “Mexico’s total 2021 imports of hemp fiber were worth $120,000, or 25 metric tons (MT). Among those, imports from the United States accounted for 63% of the total of the tariff group, with France second at 29%.”

“In 2020, Mexico’s CBD market was valued at $9.2 million.” New Frontier Data stated. “Expectations over the next seven years are for the market to reach $675 million.”