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New Zealand Government Publishes First Draft Cannabis Bill

New Zealanders will go to the polls on September 19 to vote on recreational cannabis reform. The draft referendum has now been published.

Here are the main points of the legislation, which assume, broadly, that the measure will pass:

  • Adults 20 years and older will be able to buy products from licensed stores (no home delivery allowed)
  • Purchases will be limited to 14 grams of flower at a time
  • No advertising will be allowed. Plain packaging will be mandated
  • Home grow will be limited to two plants per person and 4 per household

Social Responsibility A Big Part Of The Legislation

One of the most interesting parts of the draft legislation is its desire to address issues that have plagued the industry just about everywhere else. Notably, the intent seems to be less profitability and revenues and more about a “race to the top.” Namely social responsibility and inclusion seem to be on the front burner of reform here.

No one company will be able to control more than 20% of the market share, and further, there will be set-asides for micro cultivators.

So far, this kind of mandate has been unseen in any other national cannabis reform.

What Might Be Available?

The first products to become available will be fresh and dried cannabis, plants, and seeds. However, edibles and concentrates will also be legal. Some products will be banned outright, including drinks and any packaged “cannabis containing roots or stems.”

Taxes will be applied at the point of packaging and labeling and will further be based on a combination of weight and potency.

Will The Referendum Succeed?

Passage of the referendum, of course, is still far from certain, but a growing number of Kiwis seem to think that recreational reform is a good idea. If passed, the country will become one of the few, outside Canada and Uruguay, that has taken the proverbial recreational cannabis bull by the horns. 

New Zealand has just started its medical cultivation program. It is conceivable that, because of this, the recreational referendum will fail. However, with the UN set to vote on the rescheduling of cannabis this December, and the desperate need for economic stimulus just about everywhere thanks to the current COVID-19 pandemic, plus growing support of the idea domestically, New Zealand might well, as of September, become a global leader in the ongoing cannabis discussion.

To stay abreast of the latest trends in the global cannabis industry, be sure to book your tickets to the International Cannabis Business Conference when it returns to Europe!

Top Mexican Senator: Cannabis Legalization Will Help Offset Economic Losses From Pandemic

The ongoing coronavirus pandemic is causing economic issues all across the planet right now, and Mexico’s economy is no exception. It will take some time before the true impact of the economic downturn is completely known, however, it is safe to say that things are going to be bad.

A top Senator in Mexico is touting cannabis legalization as a way to help offset the negative economic impact of the pandemic, as reported by Marijuana Moment:

A top Mexican senator says that marijuana legalization could generate tax revenue to offset economic losses caused by the coronavirus pandemic—and lawmakers could have the opportunity to advance reform in a committee that’s expected to be established on Thursday.

Sen. Julio Ramón Menchaca Salazar of the ruling Morena party said that while legislators must still resolve disagreements about legislation that’s already been introduced and advanced through several committees last month, legalizing cannabis could fill treasury coffers at a time when the economy is taking a massive hit under social distancing and stay-at-home orders.

Mexico has produced a significant amount of cannabis over the last handful of decades and has long been a source of unregulated cannabis around the world, especially in the United States.

A vast majority of that cannabis has financially benefitted gangs and cartels, and none of it has generated revenue for the public coffers in Mexico. Mexico is well-positioned to be an international cannabis industry powerhouse, but first Mexico needs to pass an adult-use legalization bill.

In late 2018 Mexico’s Supreme Court issued a ruling that deemed cannabis prohibition to be unconstitutional and tasked Mexico’s lawmakers with passing a legalization measure. That has yet to happen, with lawmakers failing to meet the first two deadlines set out by Mexico’s Supreme Court.

UK Regulators Publish Emergency Medical Cannabis Rules

Regulators in the United Kingdom recently published emergency rules allowing patients to access cannabis-based medicines from pharmacies without a prescription during the coronavirus pandemic.

As with just about everything right now, the pandemic is having a negative impact on the UK’s medical cannabis program. The UK’s program is very limited, however, UK regulators still felt that medical cannabis was essential enough to issue the emergency rules to help some, but not all, suffering patients. Per BBC:

On Wednesday, the government published emergency legislation which, if activated, would allow patients to continue accessing controlled drugs for the duration of the pandemic, from local pharmacies, without a prescription.

A Home Office official said the measures would “relieve pressure on our healthcare system and encourage people to stay at home”.

Unfortunately, the rules will only help a limited number of patients if they are enacted. As a pharmacist pointed out in the previously cited BBC article, the rules only apply to patients receiving ‘ongoing’ treatment, which will result in many suffering patients being excluded from benefitting from the new public policy.

The move by UK regulators is a small one, but it will hopefully help some amount of suffering patients. The UK is home to one of the most limited medical cannabis programs in developed countries, and hopefully that changes sooner rather than later because all suffering patients deserve safe access to proven medications such as medical cannabis.

First Cannabis-Based Medicinal Product Gets Approval In Brazil

Cannabis reform is spreading across South America. Uruguay was the first country on the entire planet to legalize cannabis for adult use, and a number of other countries have launched legal medical cannabis industries.

One country that has been somewhat slow to embrace legal cannabis is South America’s most populated country Brazil. Brazil’s medical cannabis program is largely just starting out, with the country having only recently approved its first cannabis-based medical product. Per Rio Times:

The National Health Surveillance Agency (ANVISA) approved on Wednesday, April 22nd, the registration of the first marijuana-based product in the country.

It is a phytopharmaceutical product that contains cannabidiol and a concentration of less than 0.2 percent THC, the substance with psychotropic effects.

The product may be sold in pharmacies, provided there is a medical prescription. ANVISA states that the drug will be used in cases where there is no therapeutic alternative, but failed to specify which diseases would be benefited.

Late last year ANVISA approved rules for Brazil’s emerging medical cannabis industry, and at the same time, it decided to prohibit domestic medical cannabis production within Brazil which is really unfortunate.

Much like other countries around the world with very strict medical cannabis industry rules, Brazil’s medical cannabis program will be very limited in size until things open up.

Brazil is home to an ideal climate for cultivating the cannabis plant, and if/when Brazil decides to allow domestic cultivation and expand the list of qualifying conditions for medical cannabis, Brazil’s medical cannabis industry will increase in size exponentially.

Unfortunately for now, business opportunities will be limited in Brazil, as will be the potential for the country’s medical cannabis program to help a significant number of suffering patients.

Could Cannabis Reform Be Part Of The Post Covid “Green New Deal”

While governments are still struggling to deal with the economic fallout from the global pandemic, one question continues to float through the entire conversation. Could domestic cannabis production be part of a massive infrastructural, if not economic, reboot? Especially because this also shortens and better secures global supply chains?

That question is clearly on the table in the U.S. right now, as states declare the industry “essential,” and lawmakers begin to consider whether to include the industry in the coming bailout packages.

In Europe, many are asking the same question.

But what could this mean, really, for economies who are literally flying in migrant workers to begin harvesting regular crops during the pandemic?

Here are a few of the trends that seem to indicate that this idea will be at least considered, if not is already in the cards.

Hemp Production Is Clearly Increasing – In almost every European country and the UK right now, hemp production is on the rise. Lobbying efforts have begun to place CBD at the forefront of the discussion about reform (just as in the U.S.). This means that recreational reform does come, hemp farmers who have managed to survive will be in the forefront of cultivation of the “other” kind.

Medical Cannabis User Numbers Continue To Rise: While it is still a fight to get access to cannabinoid treatments, patients in many European countries are continuing to rise – even if “all” they can get, for now, is dronabinol, the generic synthetic.

Cannabis Production Continues To Go Forward: While GMP certification and licensing have clearly slowed during the pandemic, there are still producers and distributors who are getting licenses. By next year, Spain, Portugal and Greece are expected to have product ready to flood European markets. Italy has already changed its laws to allow limited home grow. And don’t forget about North Macedonia.

Regional Reform Is In The Cards: Within two years, as most in the industry have predicted, the question at the table is not if but when reform is instituted on an EU wide basis. This will almost certainly happen in tandem with reform in the U.S. and after the UN changes global regulations on cannabis. The reason? International trade agreements that have come into force in the last several years. This means that individual European countries will finally be free to make their own decisions about legalization. 

Bottom line? It is clear that cannabis reform, starting with increased tax revenues sure to flow to overstressed economies thanks to the Great Covid Recession, is on track in Europe, even on an extended schedule. And given the massive blow the global economy thanks to the current pandemic, all such sources of revenue will clearly be welcome, just about everywhere that cannabis reform has so far stalled.

To keep abreast of the latest legislative changes if not rapidly moving business regulations in Europe, be sure to attend the International Cannabis Business Conference when it returns to Europe this summer.

Swiss Parliament Passes Motion To Authorize Cannabis Production And Export

Despite being put on hold due to the pandemic, the Swiss Parliament has passed a motion calling for a change in the country’s cannabis law.

The bill will do several things. The first is to allow the Swiss to export cannabis. The second is to authorize regular doctors to prescribe cannabis directly. Currently, the only “legal” Swiss patients must obtain prescriptions from the Federal Office of Public Health. This is expensive and time-consuming and at present, there are only about 3,000 “legal” patients. It is however estimated that there are over a hundred thousand Swiss people who obtain the drug illegally to treat their symptoms. 

It is expected that the new law will come into effect sometime in mid-2021.

Currently, hemp with less than 1% THC is the only cannabis crop in the country that is widely cultivated. Medical production here, like in other countries, must obtain GMP certification.

A Swiss Trial Project?

While all bets are off about timing, thanks to the pandemic, there will be a Swiss trial project that allows the controlled distribution of cannabis to adults (in other words a recreational trial). The National Council voted in favour of the project last December.

In February, this was approved by a single Parliamentary committee. The project also has to pass the Council of States before it can proceed.

Is Switzerland Waiting For the UN?

There is no telling how many national cannabis legalization projects, particularly in Europe, are waiting for the green light from the UN. The international body delayed the decision on the reclassification and rescheduling of cannabis for 9 months in March, literally ten days before declaring a global pandemic.

Why Is Switzerland Such A Strategic Lever For Change?

Despite being located in the “heart” of Europe geographically, the Swiss are not part of the EU. This technically means they are not bound by any European decisions on the drug, made from Brussels. 

What this new law will mean, presumably when it comes into force next year, is that Switzerland could zoom ahead of even Luxembourg, which has already announced that it will enable full cannabis reform by 2022. With export legalized, this means that Switzerland could overtake Holland as the single largest cannabis exporter in Europe, on both the medical and recreational side within two years.

There are other contenders vying for that prize of course, both within and without the EU. Denmark, which is also not an EU member, could vie for this business. 

This development could also move the needle of reform in Brussels, changing the ability of EU members to proceed. 

Everything, however, seems to be resting on the UN’s pending decision in December.

The International Cannabis Business Conference will be returning to Europe. Check the blog for the reinstated schedule.

Lebanon Passes Historic Cannabis Reform Measure

When it comes to cannabis reform, the Middle East is one of the toughest places to achieve a cannabis reform victory. The region is notoriously conservative when it comes to cannabis policy.

However, a significant victory occurred this week in Lebanon, where lawmakers passed a first-of-its-kind for the region cannabis reform measure. Per Al-Monitor:

Lebanon became the first Arab country to legalize cannabis farming in the hopes that sales from the plant will provide some relief to its debt-ridden economy.

Despite pushback from the Shiite Islamist group Hezbollah, the Lebanese parliament passed legislation legalizing marijuana cultivation for medicinal and industrial purposes. Recreational use of marijuana will remain illegal.

Estimates put the potential for Lebanon’s cannabis industry at roughly 1 billion dollars. For a country as poor as Lebanon, that amount of money would be a gamechanger.

According to the United Nations, Lebanon produces more ‘cannabis resin’ than any other country on earth other than Morocco and Afganistan, so it’s not as if the country is new to the cannabis trade. The new law will help members of Lebanon’s cannabis industry conduct their business legally.

It will be very interesting to see if other countries in the region follow Lebanon’s lead. The entire region is in desperate need of cannabis reform.

Mexico’s Supreme Court Extends Cannabis Legalization Deadline, Again

In 2018 Mexico’s Supreme Court determined that cannabis prohibition was unconstitutional. Since that time Mexico’s cannabis policy has remained in limbo while Mexico’s lawmakers work to pass legislation to implement cannabis legalization.

Initially, Mexico’s Supreme Court issued a one-year deadline for lawmakers to pass the legislation, and lawmakers failed to meet the initial deadline. The Court then issued an extension to the end of April 2020 for lawmakers to meet.

Due to various factors, not the least of which is the coronavirus pandemic, lawmakers are not able to meet the deadline extension. Thankfully, Mexico’s Supreme Court issued another extension, as reported by Marijuana Moment:

The new deadline for lawmakers to end prohibition is December 15—the end of the next legislative session. Politco.mx first reported the development.

Sen. Mónica Fernández, president of the Senate’s Board of Directors, thanked the court for approving the extension.

Although lawmakers conceded they would not be able to meet this month’s deadline, substantial progress has been made nonetheless on the cannabis legislation.

When the initial court ruling was issued, Mexico appeared to be on the fast-track to becoming the third country to implement an adult-use cannabis legalization policy. Uruguay and Canada are the only two countries to have implemented an adult-use cannabis legalization measure.

Many reports have come out of Mexico since late 2018 stating that ‘progress has been made’ on legislation, just for those reports to ultimately prove fruitless. Until legislation is a done deal, Mexico’s cannabis policy will remain in limbo and all reports of increased momentum towards success will need to be met with tempered expectations.

The Spirit Of The Cannabis Community Is Alive And Well This 4/20

Unless you have been living under a rock the last few decades, then you are presumably aware that April 20th is the official holiday for the global cannabis community. Every year members of the cannabis community celebrate our favorite plant on April 20th.

Historically, global April 20th gatherings were geared towards activists protesting unjust cannabis laws around the world. As reform has spread to various parts of the planet, many gatherings in legal jurisdictions have transitioned to celebrations that include various forms of entertainment in addition to consumption.

April 20th, 2020 was supposed to be the greatest 4/20 celebration in the history of the cannabis community. The last time that it was 4/20 for an entire month was in 1920 when things were obviously much different than they are today. Unfortunately, in-person 4/20 events were canceled all over the planet due to the ongoing pandemic, which was sad to see.

However, just because the 4/20 that was envisioned didn’t occur doesn’t mean that the spirit of the cannabis community is defeated. In fact, quite the opposite is true. Virtual cannabis events, fundraisers, and rallies are being held all over the world today. In true cannabis community fashion, the community adapted to the unforeseen circumstances and made the best of it.

It’s what we have done for decades, and it’s what we will continue to do as a community.

The cannabis movement didn’t get to where it is today because of advocates running into a hurdle and giving up. The story of the cannabis movement is a story of overcoming hurdle after hurdle, with some of those hurdles initially seeming to be impossible to get over. Yet, time after time the cannabis community stepped up and succeeded, and this 4/20 is a continuation of that.

It may not be the 4/20 that we all wanted, but we are all still one giant cannabis community celebrating in unity today, and nothing can stop the (virtual) celebration from happening. Not unjust cannabis laws. Not cannabis opponents. Not even a pandemic.

Celebrate responsibly today and know that there is still a lot of work left to be done, reflect on the victories that have been achieved, keep cannabis prisoners in your thoughts, and know that the future of the cannabis movement is bright. Cheers!