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Author: Marguerite Arnold

Cannabis y Libertad – Will Mexico’s Recreational Coup Be A Bloodless One On Both Sides Of The Rio Grande?

For those who know their Mexican history, the slogan of the country’s revolution between the years 1910-1920 was Tierra y Libertad (land and freedom).

This century is about to see a bit of a repeat. Including a restriction imposed by that revolution (the illegality of cannabis itself) that is about to go down in flames.

The Mexican Supreme court ruled on October 31, 2018, that current laws in the country prohibiting the recreational use of cannabis are unconstitutional. Further, the court ruled that the government must implement laws to essentially begin the process of regulating the industry by March 2019. 

Previously, the Supreme Court had ruled in 2015 that the prohibition of personal cultivation and use was also unconstitutional as it violated the human right to the free development of one’s personality. Limited medical reform was then implemented in 2017 by the government.

So far, essentially, however, this is an uncomfortable can that has been kicked down the road repeatedly by the nation’s lawmakers.

That is about to change.

The country’s legislators have a new deadline – December 15 – to pass cannabis legislation of the recreational kind.

The question still on the table is what kind of legal market this might look like – and if indeed the market will be protected or opened to foreign investors and companies.

Rec Reform “South Of The Border”?

Realistically, particularly with continued political delay north of the border (even in a Biden presidency), the development of a Mexican marijuana market that is recreationally legal is likely to start a massive influx of capital into the region – even if just to displace traditional “landed” interests that might have previous experience in the drug industry in the country – but not from the legal side of the world.

And in an irony of history, Mexico will lead drug reform north of the border, by legalizing a market and industry on a federal level that the U.S. at least, for all of its forward reform at the state level, has yet to embrace.

A revolution indeed. And further one that will undoubtedly become, beyond state reform domestically, the final nail in the coffin of prohibition in the U.S. as well.

For the latest updates on the global cannabis industry, be sure to attend the International Cannabis Business Conference when it returns to live conferences!

European Cannabis Reform Inching Forward Despite Covid

Does the expected WHO decision on cannabis this December have anything to do with it?

A funny thing is happening across Covid-stressed Europe. Governments are either inching forwards reluctantly on aspects of the cannabis question, or they are being challenged to change the law in court. Regardless, it is clear that cannabis is on the agenda, even if reluctantly, just about everywhere.

Indeed in the last month, these individual developments have inched forwards across the continent:

Spain: The Canary Islands Parliament just voted to move full reform forwards. While far off the Spanish mainland if not far from Catalonia (the Spanish autonomous “state” that is also home of Barcelona aka home of the vast majority of cannabis clubs), and closer to the coast of Africa than Madrid, this small archipelago of 4 million people could well help put pressure on the central Spanish government to finally begin to federally regulate the industry at all levels. In the meantime, one of the heroes of the club movement is challenging the legitimacy of the federal Spanish law in European Human Rights Court.

Italy: Quietly published in August, the Agriculture Ministry has included the extract of hemp flower in an official list of agricultural products that can be used for medical purposes.

France: On October 7, the French released news of the much-promised medical trial finally being instituted in the country no later than March 31, 2021, and to run for a period of two years. This comfortably puts any French cannabis experiment absolutely in line with one apparently established internationally by globally moving forces. See the UN.

European Countries Seem To Be Aligning With A Medical Outlook

With the increased formalization of the German market (namely BfArM has now chosen a distributor for domestically produced crops), the writing is absolutely on the wall that at a diplomatic, nosebleed level, countries across Europe have now absolutely fallen into line on accepting cannabis as a legitimate medical plant if not product.

This is a victory, no matter how incomplete. For those who remember the days before 2016, no matter how slow change has sometimes seemed, it is also one achieved in almost record time, all things considered. 

The Next Steps

There is nobody in the industry, let alone those who seek to regulate and shape it externally, who believes that this is all “over.” Even after the WHO makes what is widely predicted to be its landmark announcement in December. 

Too many patients remain outside care. And both hemp and recreational reform beyond that are now also absolutely on the horizon, no matter how many years and countless fights remain.

Be sure to book your tickets to the only European cannabis industry conference that keeps you up to date if not on the cusp of developing trends across the industry. The International Cannabis Business Conference returns to Europe in 2021!

The Continuing Importance Of The German Medical Cannabis Market

Even with the impact of Covid, the German cannabis market has continued to power forward. Several new distribution deals have been finalized in the last six months, and a German distributor for the domestically, bid-grown cannabis has been chosen.

Furthermore, the reference price for wholesale medical cannabis flower has also been established. 

And despite the fact that they were far from copacetic about the same, German insurers are now directly on the hook to reimburse a drug they are also now setting a commercial “end-user” price for.

This means that the country, of roughly 83 million people has a working, if still evolving market for a drug, even in its raw form, a set of standards, and at least the outline of a supply chain that is totally integrated into the mainstream medical system here.

There is no other country in the world, besides Israel, that has accomplished the same.

Medical Cannabis Is Not The Only Discussion In The Room

Furthermore, despite all the advances on other parts of this discussion (namely both “hemp” and the “CBD” markets), not to mention the now ongoing drumbeat for further reform and of the recreational kind all over the continent, there is no regulated market that even comes close to what has now been firmly established auf Deutschland.

Namely, although it can still be a fight if not a major administrative, paper-strewn pain to become a medical cannabis patient, that possibility is becoming more and more mainstream.

And further, certainly, in Germany it is absolutely possible to buy hemp-based products if you want to. You just pay out the nose for high-quality product.

What Does This Mean For Other European Countries?

There is little chance that the European Union will be able to deflect if not punt on the topic of medical cannabis this December after the WHO makes what is expected to be at least a clarifying decision about what cannabis actually is. That this may still leave CBD in the “narcotic basket” is one issue. Hopefully, hemp will drop out of the discussion – leaving still the thorny issues surrounding “novel food” which will also not just fade away.

However, by redefining the plant as a drug, even if only looking at it through the THC lens, the WHO is lining up to at least support the infrastructure created nationally by a few countries (Germany and Israel being two of the leading cannabis medical infrastructures in the world). And everyone else, will in the end, find themselves playing catch-up.

For the best analysis and understanding of the changing market in Germany if not across Europe, be sure to attend the next International Cannabis Business Conference in Europe in 2021

Q’3 Overview Of The German Medical Cannabis Market

As the leaves begin to turn this year and the days grow shorter, a period also known as Q’3 2020, what and where is the status of the German medical cannabis market?

That is a very good question, in part because of the evolving shape of both the medical and non-medical market here.

In summary, here are the major takeaways:

Nobody Knows How Many Patients There Actually Are: By industry estimates and reports drawn from the public reporting of Germany’s association of public health insurers (GKV), there have been about 100,000 applications so far since 2017 to the major statutory health insurers (who cover 90% of the population). Of these, it is estimated that there are about 60,000 regular patients. The amount of actual patients however is currently unknown.

When one counts the actual number of activist patients, those who are buying and or cultivating in collectives, or who go to the black market out of sheer frustration in getting a doctor to write a prescription (or affording flower in a pharmacy), the pool of real patients in Germany is much, much larger.

Further medical reform here is clearly in the offing no matter how slow. And no matter how delayed German grown cannabis has been here, it is coming – distributed via one specialty distributor in Frankfurt. 

A former health minister and vice-chancellor of Germany also just made waves, if not a strong political statement when he recently joined the board of a Swiss cannabis company.

Imports Will Continue To Play A Large Role: There is no doubt in anyone’s mind that exports from the rest of the world (and increasingly, NOT Canada) are entering the German medical market.

This is true of both the medical and not medical market (including industrial hemp and what hemp extract can find its way to market in a variety of tortured routes).

The Hemp Market Is Still Intriguingly Bizarre: The British are setting sail in a new direction on all things hemp and CBD. Brussels, in the meantime, is very scientifically confused, or perhaps just bureaucratically diplomatic. They lose nothing by having their hands pushed by a new UN decree on the status of cannabis now on the schedule for December. The losers, generally, are hemp producers in Europe who are not ready to play the game of hop, skip and specialty import supply chain tactics. There is light in other words, but also clearly a bit of tunnel left to go.

Be sure to book your tickets for the International Cannabis Business Conference next year when it returns to Europe.

Three French Mayors Call For National Cannabis Reform

While German patient numbers continue to steadily if slowly rise, the UK begins to set out its unique stance on CBD and other European countries make similar kinds of (more) canna friendly announcements, one country in Western Europe still stands out for its decided lack of reform.

Namely France.

Despite all sorts of promises, and from the highest political office in the land no less (namely the current if unpopular President Emmanuel Macron) reform even of the medical kind has not significantly budged in France.

With no established clubs or coffee houses, even in the grey areas of the law (see Spain and Holland), an insurer mandate to cover patients (Germany) or even exploratory market tests scheduled (Denmark, Holland, Switzerland), the country indeed is the laggard not only in Western Europe, but Europe generally.

The question, really is why?

One thing is for sure. It is not a question of better cheese or wine much less a snotty attitude about pronunciation. The French government is moving like snails (and not the delicious variety with butter and garlic) when it comes to reform.

A Political Response

But all is not lost in the land of Asterix. In late September, three French mayors, Gil Avérous (Châteauroux), Boris Ravignon (Charleville-Mézières) and Arnaud Robinet (Reims), have begun to speak out as a group – and for recreational reform.

Their main concerns? That 1.5 million regular users will continue to have to buy from the black market. And of course that the black market encourages criminality and money laundering – to the tune of at least 1.2 billion euros a year.

It may not sound like much of a response, even though they are also challenging other politicians and at all levels to join this campaign. 

But it is a good sign.

A Brief History of Cannabis In The Land of “Vive La Revolution!”

Perhaps it seems strange to foreigners that the home of democratic revolutions, as well as infamous lines from the last nobility to party on – as in “Let them eat cake,” would be slow adapt to the canna revolution. However, slow it certainly has been.

As of 2013, France changed the law (in place since 1953) to allow limited medical use. And as of September 1, 2020, the penalty for being found with cannabis as a user was reduced to a 200 euro fine with no police custody.

For the best regulatory guidance on the changing markets in Europe, be sure to return to the International Cannabis Business Conference next year!

Yes, I Inhaled – New Zealand’s PM Admits Smoking Cannabis In Election Debate

The topic of recreational cannabis reform is absolutely atop the country’s election debate as New Zealand stares down its own national elections on October 17. Originally scheduled to take place on September 19 but delayed because of COVID, the vote for rec reform is not expected to be successful.

The majority of New Zealanders do want to see more medical reform, and the topic is likely to be a big issue going forward, particularly, if as expected, the recreational reform campaign fails at the ballot box. The country, like many others, is now beginning to quantify and structure its medical industry. That said, a full-boat “Canadian” if not U.S. state style cannabiz appears to be just a bit too forward for the Kiwis this year. And if it fails, the topic is also likely to get booted down the political pike for several years, at least.

The topic of recreational reform, however, is still enough of a political bug bear that defending Prime Minister Jacinda Ardern was forced to admit recreational use “a long time ago” in her most recent televised debate against her opponent. She has so far refused to say how she will vote on recreational reform herself.

Is Recreational Taking A Breather?

Canna history is likely to show that 2020 was clearly a transitional year for the entire industry, globally, but recreational was far from the top of the agenda just about anywhere.

There are reasons for this apart from bureaucratic decisions that are still far removed from science.

The UN is likely to reset the entire debate about the plant itself as of the end of the year – no matter what it decides.

From that point on, other countries (see Luxembourg) are likely to take the ball forward, but only against a medical discussion that first and foremost recognizes the plant and its extracts as at minimum a kind of superfood if not wonder drug.

2021 is likely to see a restart of the discussion across Europe, particularly given what has happened here so far, particularly with a greater interest in hemp and extracts as a way forward to wellness, beyond a visit to the doctor.

For the latest on industry trends be sure to attend the International Cannabis Business Conference when it returns to Europe next year.

Could A Pending Court Case Change The Cannabis Club Question In Spain If Not Europe?

The Spanish cannabis market is one that has evolved over the last several years, primarily via the very greyness of the status of cannabis per Spanish law. Namely, much like it has been for decades in Holland, Spanish citizens may consume cannabis in private “clubs.” Operating them, or indeed growing for them, however, has been perilous for many involved directly in the debate.

Now the legal challenge of one of the leaders of the entire discussion is having his day in a European Court. Namely, Albert Tió, one of the leaders of the Spanish club movement, has a human rights case now headed to Strasbourg. 

Tió, a 53-year-old activist and father of minor children, was the secretary of one of the largest cannabis associations in Barcelona with nearly 4,000 members. In February 2014, the indoor grow facility that supplied the association was shut down by police, and both Tió and two other directors were convicted of crimes against the “public health and illicit association” by the Provincial Court in Barcelona.

This sentence was later ratified by the Spanish Supreme Court which also refused to process the appeal against the conviction. Tió, as a result, left Spain to avoid prosecution and is now seeking retribution at the European Court of Human Rights.

The Impact of The Case On Spanish (And Other European) Cannabis Clubs

The case could well have a large impact on not only Spanish but other European cannabis social club models, particularly in countries like Germany where the right of cannabis has now been enshrined as a medical one, and the right of association, even post Covid, is a hot topic.

Tió’s argument is that his conviction as one of the leading voices for cannabis reform, leading to the origin of the formal “club” law approved by the Catalan government in 2017 is a violation of the rights of autonomy and personal dignity contained in the European Convention on Human rights.

If he wins, as many suspects he might, it will have huge implications on the formal establishment of not only clubs but the associated cultivations associated with them. This in turn, especially in Spain, moves the needle towards a formally regulated industry. 

Across Europe, the win could also upset the apple cart in places like Germany, which have seen three years so far of “medical” reform but no movement whatsoever on either non-medical hemp reform (if not backward steps) and many obstacles in the way of greater medical access for most patients.

While three countries in Europe (Denmark, Holland and Luxembourg) plus Switzerland are moving forward with recreational trials if not plans, Spain as well as countries like Germany have not moved forward to enshrine a formal medical or recreational industry. This also appears now to be on the brink of changing, one way or the other.

For the latest updates on the ever-changing European cannabis marketplace, be sure to attend the International Cannabis Business Conference when it returns to Europe in 2021.

Portugal Moves Forward On Regulating Domestic Hemp Market

On August 4, the Portuguese government issued a regulatory document that authorizes the cultivation and exploitation of the domestic hemp market.

According to the document, translated from Portuguese, the law “establishes the conditions, authorizations and inspection that apply to the cultivation, production, manufacture, employment, trade, distribution, import, export, introduction, dispatch, transit, possession for any purpose and use of plants, substances and preparations.”

Here are the big takeaways:

  • The Departments of Agriculture and Justice have an overview and supervisory authority over the vertical for hemp bound for industrial purposes. The Institute for the Financing of Agriculture and Fisheries along with the Judiciary Police, National Republica Guard and the Public Security police will also all have a role to play in the regulation and oversight of the industry and its regulatory schemata and rules.
  • Regardless, however, no matter where the hemp is grown, it will be subject to certification just because of difficulty authorities have already identified, namely understanding quickly which plant is which (higher THC cultivars vs. low THC plants with less than 0.2%).
  • This classification includes all hemp grown for non-human consumption (i.e. industrial) and animal food.
  • The regulations will also be applied to the medical cannabis market – namely creating a space domestically for the legal prescription of narcotic drugs.
  • Sets fees for cultivation (3,000), additional certifications (1,000), and additional charges set by the government for the licensing and certification process.

Significance In the European Market

Portugal is currently one of the few countries which have allowed cannabis production from the medical perspective since Tilray established production facilities in the country in 2017. Now, however, it is clearly joining the list of European countries determined to try to regulate hemp separately.

This means, however, that the country has not taken a stand on the discussion before any European Commission decision that hemp is somehow a “narcotic” (pending in September). The Portuguese decree also does not appear to take a stand on the question of whether hemp is “novel” or not for human consumption.

This careful designation, in other words, appears to presage a future where the terms and conditions of the entire industry are set by those who believe that hemp or its extracts are somehow “new” in Europe. Or potentially classified for all human consumption as a “narcotic.”

In the meantime, beyond the headlines, German-produced, and EU-BIO certified, higher quality hemp oil is showing up in chain grocery stores across Deutschland.

It is inevitable that there are a few rounds left in the entire discussion from the regional and country perspective.

In the meantime, another country in Europe has established a formal hemp program, even if it seems to be a very small first step.

Join the International Cannabis Business Conference when it returns to Europe in 2021. Until then, stay tuned to our blog!

Tilray Recalling Cannabis Extract From German Market

According to DAZ online, a German-language, pharmacy-oriented publication, Tilray has had to recall its cannabis extract in the German market because the THC in its products is lower than stated on the packaging.

There is no danger to patients, but the effect of the medication may be reduced.

Pharmacists must destroy the extract they have received if it is on-premises.

According to the company in a statement released via the German Pharmacists’ Medicines Commission (AMK), the initial batch of Tilray THC 10 CBD 10  tested within parameters of a release date. However, a continuous stability test revealed that the THC content was subsequently lower.

There is no danger to humans, however, a different than stated effect could occur when using the affected products.

The Impact On The German Market

This is now the second recall in the German market in the last year. Aurora cannabis also ran into trouble last fall.

At at time when German flower and other products made from the same are finally about to enter the market here, this is an embarrassing flub, but also a reminder that the industry is increasingly regulated across Europe and being fitted into existing pharmaceutical infrastructure and standards.

The industry has come a long way, however, it is clear there is room to grow.

In the meantime, Tilray is left without a strategical import product in the market, and a negative mark in the country’s main pharmaceutical trade zine.

The Good News? Whole Plant Cannabis Extracts Have Arrived

Beyond this temporary setback for perhaps the strongest company in a position to begin competing against dronabinol in its presence in the market (if not yet price), there has been a clear ramp-up in the entire German cannabis market conversation.

With only three firms growing the plant in Germany, it is inevitable that at least a part of this crop, certainly in the future, will be processed into extracts for the medical market.

In the meantime, the most widely available medical grade “cannabinoid extract” with THC in it, is dronabinol, produced both by a German and Israeli company. Both companies are likely to see an uptick in sales as a result of the Tilray fail, not just because of price but sheer availability.

However, it is also clear that this is only a temporary setback for the company as well as the entire medical extract discussion auf Deutschland.

The International Cannabis Business Conference will return to Europe in the spring of 2021. Stay tuned for more news from Europe by following our blog!