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Hong Kong Goes Backwards On CBD Policy

Hong Kong is planning on banning all cannabidiol (CBD) products, with the ban expected to go into effect in 2023. Will banning CBD really work?

John Lee, the Chief Executive of the Hong Kong Special Administrative Region said on Saturday, September 17, that the government will specifically outlaw CBD next year. Speaking as the opening speaker of an anti-drug event, Lee said that the HKSAR is ramping up its effort to “control drugs.” He also spoke of previous drug interdiction efforts by law enforcement agencies.

According to Lee, cannabis is a drug – and more worryingly, used by half of “drug abusers” in the country.

Last year, in 2021, the number of criminal cases related to cannabis rose by 15% and the amount of tonnage seized increased 150%. The number of reported “drug abusers” in Hong Kong halved in the last decade, dropping to 6,000 last year.

Hong Kong Moving with China

While drug use has always been harshly punished in Hong Kong, like the rest of Asia, the move to ban CBD is a bit of a surprise move. Possession of high THC plants and products can lead to a prison term of up to 7 years and a $125,000 fine. Drug trafficking can land the accused in prison for life.

It is more than likely that the HKSAR is following a Chinese mandate as the country comes directly under China’s rule.

Ironically, China is the world’s largest producer of hemp, although unauthorized cultivation and even seed possession can still lead to harsh punishment.

Marching Left (When the Rest of the World Is Going Right?)

It is unclear when and how cannabis reform will come to both China and Hong Kong. It is not as if there is no cannabis industry in this region of the world. Indeed, beyond hemp production, China is the largest global manufacturer (and exporter) of LED lighting used in commercial and indoor cultivation.

Thailand currently leads the region in progressing on cannabis reform, and even here there has been a controversy as the loosening of drug laws and restrictions has led to a boom in unauthorized production and sale, beyond strict medical use.

Other countries, such as Malaysia, are also studying the Thai example intently, and may move to legalize at least medical use next year.

For this reason, while China and now Hong Kong hold out as bastions of strict cannarepression, it is unlikely that other countries in the region will follow suit. This, no matter the backsliding in Hong Kong, is likely to drive the conversation forward, no matter the backlash that is, by its very nature and timing, is sure to be short lived.

Success Of Bahamas Cannabis Industry Hinges On Banking Acceptance Says AG

The Bahamas are located in the Caribbean which is a region that is seeing increased cannabis industry activity, and for good reason. After all, it is no secret that the cannabis plant grows very well naturally in the region.

As the island nation’s cannabis industry continues its quest to become a regional industry leader, a major hurdle facing the industry in the Bahamas is banking access. It’s something that elected officials in other Caribbean nations have expressed concerns about, and you can now add the Bahamas’ attorney general to that list. Per Eyewitness News:

Attorney General Ryan Pinder yesterday said that banks need to demonstrate less resistance to the digital asset and cannabis industries, noting that they play a key role in the survivability of those industries.

Pinder spoke with Eyewitness News on the sidelines of the Association of International Bank and Trust Companies (AIBT) Nassau Conference.

The legal cannabis industry in the Bahamas is still very young, with many rules and regulations still being crafted. With that in mind, it will be awhile before the nation’s industry actually comes up against banking access issues in a significant way.

Yet, just the threat of a banking issue has proven to be enough to derail reform and industry efforts in other countries, as cannabis opponents point to it repeatedly in an attempt to delay said efforts.

Hopefully that doesn’t prove to be the case in the Bahamas and that locals will recognize that the cannabis industry is thriving elsewhere despite ongoing international and domestic banking headaches.

Scenes From German Cannabis Legalization In Progress

The German government is clearly moving forward with plans to legalize the plant. A delegation of Bundestag members is currently touring California – and last week two members of the SPD gave a progress report via Instagram

If there was a portrait of the in-progress discussion over German cannabis legalization to be sketched, it would be this. Very earnestly, very soberly and very deliberately, lawmakers are trying to both research North American cannabis markets and give the German people a general idea of where the legislation is heading.

SPD Informal Briefing Via Social Media

Last week, two members of the SPD, Carmen Wegge and Dirk Heidenblut went on Instagram to give an update into how legalization legislation was progressing. There were few surprises – starting with the fact that the government does not believe that international law – of either the EU or global kind – will derail the legalization initiative.

Beyond this, they both stated that they expect the draft legislation to be introduced either at the end of this year or early next, and the legislation to pass by next summer.

Home grow is very likely to be included in all of this. Online sales are almost certainly not going to be allowed. The Bundestag is also looking at both pharmacies and social clubs beyond dispensaries for legal sales.

Beyond this, it is also likely that cannabis will be allowed to be both domestically grown and imported, and that decriminalization will be part of the final legislation – not be implemented beforehand.

German Bundestag Delegation in California

As reported in the German zeitung Tagesschau, the Bundestag is keeping busy during the California leg of their North American cannabis research tour. The delegation is visiting as many as three cities a day to understand how the state has implemented recreational reform.

The takeaways? That the legal cultivation of cannabis is not profitable in the American model, and that the black market is still its biggest competition. Further, while they were impressed by the range of edibles available and are not ruling this aspect of the rec market out at home, candy that appeals to children, like gummy bears, is likely to be excluded.

Beyond this, the fragmented nature of regulation, from town to town is not likely to be a part of the approach in Germany. A national approach is something that seems to be more attractive.

Going Back Is Not An Option: From Germany To Thailand, Lawmakers Realize Cannabis Legalization Is On Horizon

In the last week, government officials from both Germany and Thailand have echoed a similar sentiment

In every movement, there comes a so-called “tipping point” when the majority of people understand that there is no way to preserve the status quo. In his famous book of the same name, Malcolm Gladwell defines a “tipping point” as “the moment of critical mass, the threshold, the boiling point” of an evolving situation that leads to a new and irreversible development.

That moment appears at this point, to have come for cannabis legalization.,

Last week, albeit on opposite sides of the globe, both Thai ministers and German elected representatives said the same thing.

Thailand right now is trying to figure out how to keep the cannabis genie in the medical bottle (and are largely realizing that they are failing). That said, there is no way, according to Health Minister Anutin Charnvirakul that renewing legislation criminalizing the drug and those who use it, can be reinstated.

In Germany, where a group of lawmakers have just gone to North America to see for themselves what reform looks like in both Canada and Canada, even the AfD (extreme right-wing party) representative on the trip echoed the same sentiment.

The time, in other words, has finally come.

How it all moves forward, however, is still very unclear.

The Devil Is in The Details

In both Thailand and Germany, lawmakers are realizing that legalization is an unstoppable force – but how to regulate the same is still a tricky question. Even if the same causes a backlash from more conservative elements in society.

In Thailand, this has meant the delay of a bill fully legalizing medical use because some fear that this will be seen as a blank slate to allow recreational use. That said, the Health Minister believes that classifying cannabis as a narcotic will only create a much larger problem and criminalize people who the government does not wish to punish.

In Germany, the current debate, beyond when the recreational legalization will pass, is how to phase in reform. Some believe that decriminalization should come first. Others believe that decrim and full legalization should happen at the same time. The latter is also the growing feeling in France.

One thing is for sure, no matter the final path to full and final legalization of cannabis. Nobody wants to keep the status quo. And that is a major victory for both the industry and reform advocates.

Committee Approves Cannabis Regulation Measure In Colombia

The cannabis industry is on the move at the global level, and there are few places on earth where that is as evident as in Colombia. The South American country is undergoing a transformation at a steady pace and taking its rightful spot as an international cannabis powerhouse.

So far, Colombia’s industry is based on the medical cannabis industry. Adult-use legalization is a tougher sell in Colombia due to stigma regarding the ongoing drug war, however, as we previously reported support for regulation is building among Colombia’s citizens.

Support for adult-use regulation is also increasing in political circles as well, as evidenced by a recent vote in Colombia. Per Infobae (translated to English):

This Wednesday, September 14, the First Committee of the House of Representatives approved, in the first debate, the constitutional reform project that seeks to regulate cannabis for adult use in Colombia. Juan Carlos Losada, representative to the Chamber of the Liberal Party, was the author of the project that seeks to become a law of the Republic.

The congressman celebrated this first step on his Twitter account. In the social network he assured that he will send a formal invitation to President Gustavo Petro so that the Government joins the discussion, “since he will be in charge of regulation.”

The successful committee vote is just one of the many hurdles that needs to be overcome in order for adult-use cannabis legalization to become a reality in Colombia. With that being said, it’s still cause for celebration, albeit tempered celebration.

To date the only countries that have legalized cannabis for adult-use at a national level beyond just low-THC cannabis are Uruguay, Canada, and Malta.

Domestic Cannabis Is Finally Coming To New Zealand

New Zealand nearly became the third country to pass an adult-use cannabis legalization measure back in 2020. The referendum measure failed by just over 2% of the vote. Had the referendum succeeded, New Zealand would have become the first country on earth to pass a national cannabis legalization measure at the ballot box versus via legislative action. Unfortunately, it proved to be a missed opportunity.

New Zealand was already home to a medical cannabis program, however, the program was very limited. While that will still largely be the case, there’s at least one component of the country’s medical cannabis program that is going to see improvement in the near future.

Government officials in New Zealand have finally granted permission for domestic medical cannabis cultivation. Per Newshub:

The Ministry of Health has just approved homegrown and manufactured medicines – so Kiwis no longer have to rely on imported medicinal cannabis.

This green gold has been given the green light by health officials to be turned into medicine for Kiwis patients.

“It’s something the whole industry has been working towards,” Helius Therapeutics CEO Carmen Doran said.

New Zealand is currently home to roughly three dozen medical cannabis companies, however, they are all operating on an import/export model. Allowing domestic cultivation will likely prove to be a gamechanger for the nation’s emerging cannabis industry.

Cannabis imports and exports will always play a role in the emerging cannabis industry, and should not be avoided entirely. With that being said, no country’s medical cannabis program will never reach its full potential without allowing some form of domestic cultivation.

BDSA Forecasts $57 Billion Cannabis Market By 2026

A new report from BDSA, an international cannabis industry data company, was published this week which provided new projections and estimates for the emerging global cannabis industry.

“The report projects annual global cannabis sales to grow from $30 billion in 2021 to $57 billion in 2026, a compound annual growth rate (CAGR) of almost 13%.” a press release from BDSA stated.

“Despite an inflationary environment and concerns about recession that dampened consumer spending, legal cannabis sales in the U.S. will reach $27 billion by the end of 2022, a jump of 7% over 2021 sales of $25 billion.” the release went on to state.

“The ‘hockey stick’ trend of sales growth seen in the early years of legal cannabis has passed, and economic and regulatory headwinds are exerting pressure on legal cannabis markets,” said Roy Bingham, CEO of BDSA. “Still, our updated forecast predicts that steady gains in developing U.S. markets will continue to drive single-digit annual growth in total U.S. legal sales in 2022, with continued growth prospects out to 2026.”

As with all cannabis industry projections, the main factor at play is politics. After all, a regulated cannabis industry cannot exist in the first place without cannabis reform. Thankfully, more and more jurisdictions are getting on the right side of history when it comes to cannabis policy.

With 2023 right around the corner, this particular report from BDSA essentially involves a three year window. A lot can happen in the next three years for the emerging global cannabis industry, not the least of which will hopefully be the launch of a regulated adult-use industry in Germany.

Prohibiting International Athletes From Consuming Cannabis Is Ridiculous

Earlier this week news surfaced that the World Anti-Doping Agency will be likely be keeping cannabis on its list of banned substances. The World Anti-Doping Agency (WADA) was established in 1999, initiated by the International Olympic Committee and based in Canada, as an ‘international independent agency composed and funded by the sport movement and governments of the world.’ The goal of the agency is to ‘promote, coordinate, and monitor the fight against drugs in sports.’

Cannabis advocates inside and outside of the professional sports world were hopeful that WADA would remove cannabis from the list of banned substances after controversy erupted regarding U.S. sprinter Sha’Carri Richardson’s suspension last year due to a failed drug test for cannabis. Unfortunately, it’s being reported that the agency plans to maintain the status quo and that the decision to do so will be finalized by the end of this month.

Why Is Cannabis Prohibited?

For the last five years of former NBA All-Star Clifford Robinson‘s amazing life I was lucky enough to be his media and communications director. Clifford, who was suspended several times for cannabis during his playing career and had multiple run ins with law enforcement due to cannabis off the court, was a very popular target for anti-cannabis sports rhetoric. Needless to say, I have come across more anti-cannabis sports talking points than most.

The most popular arguments regarding cannabis prohibition in sports seem to hinge on two things. The first is that cannabis is ‘bad for athletes’ and therefore cannabis should be prohibited. Historically, that was the argument offered up as ‘justification’ for cannabis prohibition as it pertains to athletic competitions. In frustrating irony that talking point is now evolving into a new argument that hinges on the exact opposite premise – that cannabis is too beneficial for athletes, and so therefore it should be prohibited.

The premise of both of those arguments are flawed. For the first argument, that cannabis is ‘harmful for athletes,’ all anyone has to do is look at the ever-increasing body of research that clearly demonstrates the wellness benefits that cannabis provides. The second argument, that cannabis is performance enhancing, requires context. Does cannabis provide wellness benefits? Sure. Does it provide so many benefits to athletes that its on par with anabolic steroids? Clearly that is not the case, and policies need to reflect it.

Evolving World

Arguably the most effective, common sense demand in support of cannabis reform outside of sports is ‘regulate cannabis like alcohol.’ It’s a phrase that has helped reform cannabis laws all over the world, and it’s a concept that should be incorporated in professional sports at all levels too, including competitions overseen by the World Anti-Doping Agency such as the Olympics. ‘On the clock’ intoxication should be the primary concern, and as long as an athlete doesn’t show up to trainings, competitions, and other official matters drunk or stoned then it shouldn’t matter.

Cannabis policies around the world are evolving, and the rules surrounding cannabis use by professional athletes needs to evolve as well. We are seeing some of that in professional sports, with leagues like the National Basketball Association suspending testing and the National Football League revamping its policy. Still, there is a long way to go to get sensible cannabis policies implemented in all areas of society, including athletic competitions, with the recent reported decision by WADA serving as a reminder of that fact.

Switzerland Adult-Use Cannabis Pilot Program Delayed By ‘Quality Issues’

Switzerland has worked to launch a pilot adult-use cannabis program in various jurisdictions, including in Basel where the country’s first pilot program was set to launch today. A pilot program involves making cannabis commerce legal for adult-use purposes for some people in limited instances.

The goal of pilot programs, which are popping up in Europe, is to help countries gain insight into adult-use cannabis policies and regulations at a local level in order to be better suited to craft laws and regulations at the national level.

Denmark already has pilot programs in place and is working to expand pilot programs to more markets within its national borders. The Netherlands also has plans for launching a pilot program, however, that program has experienced a number of setbacks. Unfortunately, it appears that the pilot project in Basel, Switzerland is also experiencing delays. Per Swiss Info:

The ‘Weed Care’ experiment in the city of Basel was supposed to launch on September 15. But it has been put on hold because traces of pesticides were found in some of the supposedly organic plants.

Basel’s health department said on Friday that the delay could last several weeks or even months as products must now be analysed again by an independent body.

On one hand, it would obviously be nice to see the pilot program launching today. Yet, on the other hand, no one wants to consume tainted cannabis products, so a delay is warranted. It is worth noting that Switzerland has allowed the legal sales of low-THC cannabis products nationwide since 2017.