Author: Hazel Norman

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Prime Minister Trudeau: Time To “Catch Up” With The Cannabis Industry

Written by Hazel Norman on March 22, 2023. Posted in Business, Policy.

Canada remains the only country on earth where anyone of legal age can make a legal adult-use cannabis purchase regardless of residency status. The only country to legalize cannabis for adult use prior to Canada doing so in 2018 was Uruguay back in 2013.

Unlike in Canada, Uruguay limits adult-use sales to residents only. Malta is the only other country on the planet right now that has also passed an adult-use legalization measure, however, the only way to legally purchase cannabis in Malta will be via licensed non-profit cannabis clubs, and no licenses seem to have been issued thus far. Malta started accepting applications for clubs late last month.

Until legal sales to non-residents become a reality elsewhere, Canada will continue to be in a league of its own. Canada’s legalization model and related policies are obviously not perfect, although, they are still exponentially better than prohibition.

The industry has succeeded by many measures despite it operating on a playing field that is far from level compared to other legal industries of its size in Canada. Prime Minister Justin Trudeau made comments recently that suggest a leveling of the playing field may be on the horizon. Per excerpts from initial reporting by StratCann:

Prime Minister Justin Trudeau acknowledged the need for the government to “catch up” with the cannabis industry’s concerns around issues like high taxation in a recent public event.

In his response, Trudeau first brought up the government’s historical public-health focussed messaging around legaization, but noted that now that the legal system is established, the government has a need to take a look at ensuring those businesses who “stepped up” in this new industry can survive.

“Now that we’ve got the public health and safety stuff out of the way, or on the way, I think you’re absolutely right that we should absolutely take a much closer look at ‘okay, what do we do then to make sure that this is a beneficial industry?’

As we previously reported, the legal cannabis industry in Canada had created roughly 151,000 jobs as of February 2022. Additionally, the emerging legal cannabis industry is responsible for generating over $15 billion since legal adult-use sales launched in late 2018.

Deloitte estimates that the legal cannabis industry in Canada has contributed over $43.5 billion to the nation’s GDP since the start of legalization. Cannabis companies have directly invested roughly $4.4 billion into Canada’s economy, with the remaining boost to GDP coming from “indirect” economic contributions, and “induced” contributions according to Deloitte.

As impressive as those statistics are, they come from an era in which Canada’s cannabis industry faced needless hurdles, many of which are still in place today. Hopefully Prime Minster Trudeau puts actions behind his recent words and does everything in his power to help his nation’s emerging cannabis industry reach its full potential.

Calls For Cannabis Reform Are Picking Up Steam In Australia

Written by Hazel Norman on March 20, 2023. Posted in Policy.

Back in February, Australia‘s Parliamentary Budget Office (PBO) released a report that presented two options for legalizing adult-use cannabis in Australia. The first option involves the creation of a new entity, the Cannabis National Agency. The agency would be the sole wholesaler between producers and licensed retailers, and it would set wholesale prices and issue all licenses.

Under the first option, the legal age for adult-use cannabis would be 18. Additionally, adult households would be able to cultivate up to six plants, and legal sales via licensed retailers would be permitted for non-residents in addition to residents.

All licensed sales would be “subject to the Goods and Services Tax (GST) as well as a 25% excise duty on sales including the GST”. The second option that was part of the PBO report contains all of the previously mentioned provisions, with the exception of a lower excise rate (15%).

Several lawmakers in Australia are touting the recommendations of the report, including Greens Senator David Shoebridge. Per The Guardian:

Australia’s cannabis industry could be earning the black market $25bn a year and, rather than policing it, we could be gaining revenue from it by legalising it, Greens senator David Shoebridge has said.

“Law enforcement is spending billions of public dollars failing to police cannabis, and the opportunity here is to turn that all on its head by legalising it,” he said.

Shoebridge indicated that he intends to introduce a legalization bill that will be somewhat modeled on Canada’s adult-use cannabis policies. Canada became the second country to legalize cannabis for adult use in 2018, with Uruguay being the first in 2013.

Unlike Uruguay, which limits legal sales to residents only, Canada permits legal sales through various licensed channels to anyone of legal age, regardless of what country they are a resident of. As such, Canada is a top international cannabis tourism destination. With any luck, Australia will join them.

Cannabis Production Identified As A Top Investment Opportunity In Rwanda

Written by Hazel Norman on March 13, 2023. Posted in Business, Policy.

Rwanda’s economy ranks 171st on earth according to World Data, making it one of the poorest countries on the planet. Rwanda’s economy is still largely agrarian, with many citizens living in rural, undeveloped areas.

Years of conflict, particularly in the 1990s, ravaged the African nation and negatively impacted the already-dim economic prospects within its borders. Needless to say, any and all reasonable boosts to Rwanda’s economy are surely welcomed.

The emerging international cannabis industry is creating jobs, generating revenue for governments, and providing boosts to local economies at an ever-increasing rate around the globe as more and more countries reform their cannabis policies. If certain leaders in Rwanda have their way, their country will join the list of international cannabis industry leaders. Per The New Times:

Rwanda is looking to attract at least Rwf19 billion (about $17.5 million) investment in the production of cannabis, also known as a high-value therapeutic crop, The New Times has learnt.

The development was recently ranked among the country’s top 100 investment opportunities, during the Invest Rwanda Forum held last week.

According to the Rwanda Development Board (RDB), global cannabis production is projected to grow from the current $28.3 billion raked in 2021, to $197.7 billion in 2028 at a compound annual growth rate of 32 per cent.

Whether or not the projection offered up by the RDB proves to be accurate is anyone’s guess. And exactly to what extent the cannabis industry may help Rwanda’s economy specifically is unclear at this time, particularly since it involves many factors.

However, if Rwanda’s government and business community can develop its domestic cannabis industry, and especially if that industry can make meaningful inroads in the export market, amazing things could happen.

India Is Working To Legalize Industrial Medical Cannabis Cultivation

Written by Hazel Norman on March 5, 2023. Posted in Policy.

India has one of the oldest connections to cannabis out of any nation on earth, particularly for sacramental purposes. According to Psychology Today, “The earliest mention of cannabis has been found in The Vedas, or sacred Hindu texts. These writings may have been compiled as early as 2000 to 1400 B.C.”

A common form of cannabis in India is bhang, which is a drink infused with various levels and types of cannabis. Bhang is reportedly common in many parts of India, even though it is technically illegal.

According to section 20 of India’s Narcotic Drugs and Psychotropic Substances Act (1985), ‘the sale/purchase, transportation, interstate import/export or any other commercial activity of cannabis’ is a punishable offense.

Cannabis use is largely tolerated in India, although there are definitely instances of people receiving harsh punishments for simple possession. Medical cannabis use is legal to some degree, with the Centre telling the Delhi High Court in January 2022 that the use of cannabis is ‘not completely banned’ and that ‘medical and scientific use of cannabis is allowed under the law.’

Uttarakhand became the first state in India to allow commercial cultivation of hemp crops back in 2018, and in 2019 the Madhya Pradesh government followed suit. In February 2020 India permitted its first medical cannabis clinic to open in Bengaluru.

Yet, large-scale cultivation of medical cannabis nationwide has remained out of reach. That could be changing soon. Per The Tribune:

Chief Parliamentary Secretary (CPS) Sunder Singh Thakur said today that the state government was working to legalise the cultivation of cannabis for medicinal and industrial purposes. The government would formulate a policy for cannabis cultivation so that farmers could get additional income, he added.

He presided over the inaugural ceremony of the three-day training workshop of the Himalayan Forest Research Institute (HFRI), Shimla, at the Atal Bihari Vajpayee Institute of Mountaineering and Allied Sports, Manali.

How long it will take for such reforms to be fully implemented is unclear at this time. What is clear is that if India succeeds in its pursuits, it will move closer to taking its rightful spot as an international cannabis industry powerhouse.

Uruguay’s Medical Cannabis Industry To Expand Via Authorization Of ‘Master Formulas’

Written by Hazel Norman on March 5, 2023. Posted in Business, Policy, Science.

Uruguay was the first country to ever pass and implement a national adult-use legalization measure. Lawmakers initially passed a legalization measure back in 2013, and regulated adult-use sales via pharmacies began in 2017.

Since that time Uruguay’s emerging legal adult-use industry has garnered significant international attention and generated considerable headlines, and rightfully so. After all, what Uruguay did and continues to do on the adult-use front is truly historic.

However, Uruguay’s cannabis industry and policy are not limited to just adult-use cannabis. Uruguay’s medical cannabis program, which receives far less attention, is set to undergo a fairly substantial expansion thanks to a recent authorization by the government. Per Montevideo (translated to English):

The government established through a decree the expansion of access routes to products made from medical cannabis, by regulating a procedure to be able to carry out treatments through master formulations prescribed by treating doctors and made in authorized pharmacies.

The decree enabled access to “master preparations based on cannabis extracts or standardized cannabinoids, from companies authorized by the Department of Medicines for the production of plant raw material with pharmacological activity.” “These master preparations may exclusively contain active principles derived from cannabis,” added the second article of the regulations.

This new authorization will hopefully help some of the most suffering patients in the South American nation, who historically have had to rely on less-sophisticated forms of medical cannabis. This is not to say that raw flower and rudimentary preparations are not sufficient, as those options can clearly help many people. Yet, for some suffering patients, they are not the best option.

Depending on a suffering patient’s condition(s), certain consumption methods are not as viable as others. Additionally, particular conditions and individual cases respond better to certain formulations for various reasons, so patients in Uruguay having more options to consider is a great thing from that perspective.

A Missed Opportunity In Spain

Written by Hazel Norman on February 22, 2023. Posted in Policy.

Yesterday was a potentially big day for cannabis policy reform in Spain, however, a bill that would have set up long-needed medical and adult-use regulations failed to pass in Parliament on Tuesday. For now, the status quo remains.

As we have reported several times in recent months, Spain’s emerging cannabis industry is in desperate need of reform in order to reach its full potential. Reform would, in turn, help consumers and patients across the country.

Unfortunately, that will not happen in the immediate future, although the fight to reform Spain’s cannabis laws is far from over. Still, yesterday’s vote was indeed unfortunate, with blame being warranted towards those that voted in support of prohibition. Per Noticias Sin (translated to English):

A comprehensive legalization of cannabis, both for therapeutic and recreational use , was rejected this Tuesday in the Spanish Parliament.

The socialist party PSOE, which is part of the coalition government in Spain with the left-wing formation United We Can, was one of those who voted against it , along with part of the right-wing opposition.

His partner in the Executive supported the initiative along with other leftist forces or formations such as the liberals of Ciudadanos, in their vote in the Congress or lower house of the Spanish Parliament.

Yesterday’s vote was definitely a missed opportunity, however, cannabis advocates will never give up. Hopefully certain reasonable tweaks can be made to proposed legislation in order to get it to the finish line.

Meanwhile, the unregulated market continues to thrive in Spain. Cannabis laws may not be as bad in Spain as they are in other countries, yet even lukewarm prohibition is still prohibition, and as long as people are being harmed by Spanish prohibition there will always be a need for reform.

Lawmakers In Spain To Debate Cannabis Regulation On Tuesday

Written by Hazel Norman on February 20, 2023. Posted in Business, Policy.

When it comes to cannabis reform efforts there are various speeds at which jurisdictions move, ranging from a rapid pace like we saw in Thailand in the last couple of years all the way to places like China where cannabis prohibition is clung to at all costs and they are seemingly somehow finding new ways to ramp up prohibition efforts.

Somewhere in between on the spectrum is Spain. As with many other things, Spain moves at its own pace when it comes to cannabis reform. Medical cannabis is legal in Spain, however, current licenses are geared towards research and exports.

Adult-use cannabis is quasi-legal in private settings in Spain, which has created a loophole of sorts that private cannabis clubs take advantage of. What Spain truly needs is domestic cannabis regulations to take away the uncertainty and help Spain’s emerging cannabis industry reach its full potential.

Fortunately, lawmakers in Spain are considering such reform, with a debate scheduled for tomorrow. The measure being considered would reportedly go beyond medical cannabis regulations. Per Infosalus (translated to English):

The Plenary of the Congress of Deputies will debate this Tuesday the Proposal for a Law of Esquerra Republicana (ERC) to regulate cannabis in an “integral” way, that is, both its therapeutic and recreational use.

One of the objectives of the Law, which ERC presented at a press conference in September 2021, is to “decriminalize” cannabis and consider it a medicine that can be accessed with a prescription.

In this way, the consumption of marijuana would be legalized in places where tobacco smoking is allowed, this would include the ability to consume cannabis outdoors and on private property.

The measure would permit for the cultivation of up to six plants within an adult residence, with a reported limit of ‘producing up to 480 grams per year.’ For context, one harvested plant cultivated using advanced techniques can yield more than 480 grams of dried cannabis flower.

Additionally, the measure would mandate that certain funds be earmarked for ‘resources to combat addiction’ and to ‘increase the awareness of the negative effects of cannabis.’ Hopefully people in Spain are already aware of the harms of prohibition, and continue to demand a more sensible approach to cannabis policy in Spain.

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European Commission Refers Hungary To The Court Of Justice Over Cannabis Vote

Written by Hazel Norman on February 20, 2023. Posted in Policy.

Last week the European Commission announced that it referred Hungary to the Court of Justice of the European Union (CJEU) for voting against the European Union’s position on removing cannabis from Schedule IV of the Convention on Narcotic Drugs at a meeting back in December 2020. Below is more information about it via a news release from the European Commission:

Today, the European Commission decided to refer Hungary to the Court of Justice of the European Union for f voting against the position of the Union on the World Health Organization (WHO) recommendations on scheduling cannabis and cannabis-related substances, as outlined in the Council Decision (EU) 2021/3.

On 2 December 2020, at the reconvened 63rd session of the United Nations (UN) Commission on Narcotic Drugs, Hungary voted against the Union position twice during the vote on the WHO recommendations in the listing of the substances under international control. Under EU law, the decisions on the international scheduling of substances under the Single Convention on Narcotic Drugs of 1961, as amended by the 1972 Protocol, and the Convention on Psychotropic Substances of 1971, fall under the exclusive competence of the European Union. Hence, the Council decision determining the Union position is binding on the EU Member States in line with the Treaty on the Functioning of the European Union.

The Commission therefore launched the infringement procedure against Hungary with a letter of formal notice sent on 18 February 2021, followed by a reasoned opinion on 12 November 2021. As the reply from the Hungarian authorities to both the letter of formal notice and reasoned opinion was unsatisfactory, the Commission has decided to refer Hungary to the Court of Justice of the European Union for failing to fulfil its obligations under the Council decision and acting in breach of the exclusive external competence of the Union as well as of the principle of sincere cooperation.

Background

On 24 January 2019, the World Health Organization presented six recommendations concerning the rescheduling of cannabis and cannabis-related substances under the UN Single Convention on Narcotic Drugs of 1961, as amended by the 1972 Protocol, and the UN Convention on Psychotropic Substances of 1971.

On 23 November 2020, the Council adopted Council Decision (EU) 2021/3 on the position to be taken, on behalf of the European Union, at the reconvened 63rd session of the Commission on Narcotic Drugs, on the scheduling of cannabis and cannabis-related substances under the Single Convention on Narcotic Drugs of 1961, as amended by the 1972 Protocol, and the Convention on Psychotropic Substances of 1971. The decision was addressed to the Member States in accordance with the Treaties and, according to Article 288 TFEU, was binding in its entirety for the Member States who were called upon to vote in the Commission on Narcotic Drugs.

The vote in the Commission on Narcotic Drugs concerning the WHO recommendations took place on 2 December 2020. Hungary voted against those recommendations. In addition, Hungary made a statement in the Commission on Narcotic Drugs strongly contradicting the EU position.

For More Information

Council Decision (EU) 2021/3

WHO Recommendations on cannabis and cannabis-related substances

Infringement decisions database

EU infringement procedure

Link to February 2023 infringements package

Australia Cannabis Legalization Could Generate A$28 Billion In Tax Revenue In First Decade

Written by Hazel Norman on February 12, 2023. Posted in Policy.

A new government report is out in Australia involving projections of potential tax revenue if/when national adult-use cannabis legalization becomes a reality in the country. Adult-use is currently illegal in most areas of Australia, with a notable exception being the Australian Capital Territory where some legal protections for consumers exist.

Cannabis commerce, including medical cannabis commerce, is very restrictive in Australia. Most of the country’s medical cannabis industry activity currently revolves around pharmaceutical products and research.

Australia ‘s Parliamentary Budget Office recently released a report that presents two options for legalizing adult-use cannabis in Australia. Part of the report also includes projections for possible industry tax revenue. Per Newsfeed:

According to the PBO report , the first option calls for the creation of the Cannabis National Agency (CANA), which would act as the sole wholesaler between growers and retailers, set wholesale cannabis prices and issue licenses to potential cannabis owners. cannabis companies. Ideally, the agency would be funded entirely by production and retail licensing.

This option would legalize cannabis for anyone aged 18 and over, with no restrictions on how much a person can buy. This approach would also create penalties for selling to underage people, as with alcohol. Cannabis would be available to “overseas visitors”, and residents would be allowed to grow up to six plants. Finally, recreational sales would be “subject to the Goods and Services Tax (GST) as well as a 25% excise duty on sales including the GST”.

The second option contains all the provisions of the first option, except for the final recommendation, which would increase the excise tax to 15% instead of 25%.

The report estimates that legalization would generate as much as A$28 billion in the first ten years after a regulated adult-use industry was launched. It’s worth noting that the projected figure is largely based on a snapshot in time.

As the global cannabis industry continues to evolve and the landscape shifts, the profit potential for companies and governments will shift with it. That is true in Australia just as it is true everywhere else around the world.

It’s unclear at this time what the chances are of either option listed in the government report actually becoming law, but it is encouraging to see that multiple options are being considered, and that the information is from a government entity.