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Finding The Right Balance Among European Cannabis Industry Regulatory Models

The entire European continent seems to be trending towards legalization for the most part, and for the small group of nations that are still dragging their feet, the writing is on the wall. It’s only a matter of time before they get on the right side of history because every day that goes by is a day that other nations inch closer to beating them to the cannabis revenue punch.

Cannabis policy is not as straightforward as many seem to think. Simply stating that cannabis should be legal in general terms is one thing. Crafting national cannabis policies and regulations is a completely different matter and requires much more thought and planning, and that is just at a national level.

Just as Europe is a continent made up of many nations, so too will it be a continent made up of many different approaches to cannabis policy and regulation. Below is just a small sampling of cannabis policy facets that lawmakers and regulators need to consider when drafting measures:

  • Home Cultivation – plant limits, canopy size limits, public view restrictions, etc.
  • Commercial Cultivation – zoning, infrastructure needs, licensing
  • Commercial Sales – allowed or continued to be prohibited?
  • Imports/Exports – if yes, what regulations are involved?
  • Social Use – can people consume in clubs, and if so, under what conditions?

Those are just a handful of things that need to be taken into consideration, and even those have several sub-facets as well. It can be a daunting task, especially when considering that Europe is composed of dozens of countries, each with its own identity, culture, and approach to governing.

Right now there are already several different cannabis industry models in existence in Europe. Malta passed an adult use legalization measure late last year, although its model is based on home cultivation and non-profit entities from which consumers can source their cannabis.

Low-THC cannabis, or ‘cannabis light,’ has been sold all over Switzerland since 2017, and a pilot adult-use cannabis industry program for higher THC varieties is launching this summer in the country as well. Pilot programs are also in operation in Denmark, and hopefully soon, the Netherlands.

All nations need to learn from each other and collaborate to enact continental-level rules and regulations to help ensure that public safety concerns are addressed in a way that still allows the industry to reach its full potential (within reason).

Education is key, and with that in mind, we recommend that people check out a timely report from Augur Associates. The report is titled, ‘Which models for cannabis adults use regulation in Europe? – findings, objectives and proposals for legalisation.’

Augur Associates is a Paris-based consultancy agency dedicated to the sustainable and cutting-edge cannabis and hemp industry. In addition to their latest report, they have also published a number of other reports dealing with the emerging cannabis industry and shifting political landscape.

Their latest publication is a robust 271-page report in its complete version, with the additional option of downloading the summary version. Both options are free at Augur and Associates’ website (previously linked to in this article). The report is also coupled with a number of insightful recommendations from the publishers for lawmakers and regulators to consider.

All eyes are on Europe for the foreseeable future, and information of this value does not come along often, especially for free. Check out the latest report from Augur Associates because the more timely information that you know, the better suited you are to make informed decisions. It could mean the difference between you crushing it in the evolving international cannabis industry or fizzling out not long after you get started.

Cannabis Prohibition Is An Inhumane Governing Policy Everywhere That It Exists

Various arguments and talking points are offered up by cannabis prohibitions to ‘justify’ keeping cannabis prohibition policies in place, however, none of them outweigh the harms of cannabis prohibition. With news surfacing this week regarding WNBA star Brittney Griner’s lengthy prison sentence in Russia related to alleged possession of a cannabis vape cartridge, many cannabis prohibition talking points are being offered up to ‘justify’ what has happened to Griner. None of those talking points are valid and certainly do not in any manner outweigh the inhumane treatment that Griner has endured and will continue to endure until this matter is finally and sufficiently remedied.

When someone makes the claim that ‘Brittney Griner should have known that she was breaking the law,’ they are basing their stance on the inhumane premise that for whatever reason it’s OK to punish people for cannabis-only acts. In Griner’s case, she was allegedly in possession of one semi-used vape pen cartridge from what I understand and is now going to serve the better part of a decade in prison in Russia pending some type of successful, meaningful help from the United States government. What Griner is enduring right now is clearly cruel and unusual punishment, and it’s shameful that cannabis prohibitionists are using the case to further their own harmful agendas.

The Brittney Griner Case Summarized

For those that have not followed the case, WNBA legend and Olympic champion Brittney Griner was first arrested in Russia back in February, roughly one week prior to Russia invading Ukraine. News of the arrest did not surface until weeks later.

Initially, the United States government was very quiet about how it would approach the case, with people in Griner’s network (fellow players, family members, friends, etc.) making public comments that they were urged to not speak out about the case. Eventually, the Biden administration ramped up efforts to intervene in Griner’s case and applied a similar status (wrongfully detained) to Griner’s case that it already had applied to other cases in which U.S. citizens were subjected to Russia’s criminal justice system.

Ultimately, Griner pled guilty to the charges, however, that does not actually mean that she was guilty of what she was being accused of. For starters, Griner stated in court that, “I’d like to plead guilty, your honor. But there was no intent. I didn’t want to break the law,” Griner said in English, which was then translated to Russian for the court proceedings, according to Reuters. “I’d like to give my testimony later. I need time to prepare.”

Legal scholars pointed out that a guilty plea in Russia is a sound legal strategy being that roughly 99% of cases result in a guilty verdict in Russia and that pleading guilty is necessary in order to start the prisoner swap process, which is likely the only way that Griner will ever make it back to United States soil.

“Traditionally, the best defense is to admit your guilt and hope you get a lesser sentence,” Willam Pomeranz, the acting director of the Wilson Center’s Kennan Institute in Washington and an expert on Russian law, told ESPN. “There’s not a lot of examples of people raising strong defenses and getting acquitted.”

Brittney Griner Is A Victim Of Prohibition, Politics, And Systemic Inequity

As expected, many people are weighing in on Griner’s 9-year prison sentence and aspects of her case now that the guilty verdict was officially rendered. Some cannabis community members are pointing to Griner’s case and then pivoting to talking points regarding Joe Biden’s unwillingness to free cannabis prisoners in the U.S. Others are pointing to a recent arrest of an NBA player in Texas and asking the logical question of why isn’t that case receiving more attention?

While all of those questions are valid, in many cases the points being made by cannabis supporters miss the main point that prohibition is wrong, it is always wrong, and prohibition is to blame in Griner’s case, Iman Shumpert’s case, as well as every other case in which someone is penalized due to cannabis-only offenses.

Griner’s case is getting significant attention because of additional compounding factors involved, not the least of which are the timing of her arrest leading up to Russia’s invasion of Ukraine, as well as the pay inequity issues in Griner’s home country that had her going to Russia in the first place. It’s widely reported that Griner was in Russia at the time of her arrest, however, her being a perennial basketball superstar in Russia’s professional women’s basketball league and being compensated over 4 times as much in Russia compared to in the United States is far less reported.

Brittney Griner was traveling to Russia for work and assuming that it was actually her vape cartridge(s), she was taking her meds with her on her work trip. Yes, those meds are illegal in Russia, but that doesn’t make Russia’s policy right. Unfortunately, Griner is now a political prisoner in Russia, and the only realistic way that she will ever be released is via a prisoner swap. The Biden administration has reportedly been in negotiations with Russia, however, the negotiations have failed to yield results so far.

The Biden administration needs to do everything that it can to free Brittney Griner, as well as do everything that it can to free cannabis prisoners in the United States, and those two things are not mutually exclusive and are simultaneously important. Furthermore, everyone everywhere needs to fight for sensible cannabis policies so that no one is ever locked up for cannabis in the first place.

Germany Or The U.S.: Who Will Go First On Federal Cannabis Reform?

The Cannabis Administration and Opportunity Act introduced in the U.S. Senate in late July, removes cannabis from the Controlled Substances Act and allows states to legalize recreational cannabis. How are American developments stacking up to current events aus Deutschland?

Ironically, just two days after Burkhard Blienert addressed the International Cannabis Business Conference in Berlin about pending German reform and outlined a rough schedule for legislative passage, a cannabis reform bill was introduced in the US Senate by Senator Chuck Schumer (D-NY).

A Side By Side Comparison

While German politicians are still unwilling to unveil details of the pending legislation until later this fall, the US version is now available for review and debate. The American bill specifically proposes removing cannabis from the Controlled Substances Act – an issue still of some contention in Germany. Beyond this, it would create a tax on cannabis product sales, expunge the records of those with past cannabis convictions, and allows federal prisoners serving time for nonviolent cannabis convictions to petition for resentencing. The legislation, if passed, would also establish a national regulatory framework to protect public health and safety.

In Europe, things are still less specific, although first-of-their-kind multilateral talks have now been launched between Malta, Luxembourg, and Germany. Beyond the information gleaned from the hearings in June, European lawmakers are now considering how to proceed not only on a national but regional level.

One of the standing questions on this side of the pond is how individual countries and the region itself will handle the actual legalization itself, including removing cannabis from sovereign narcotics laws as well as regulations at the EU level. There seems to be less interest in dealing with issues like racial justice, although there will clearly be a discussion about how to handle those with both convictions and those who are currently in jail for nonviolent cannabis offenses.

The discussion about taxing cannabis based on the levels of THC found in products and plants appears, for now, to be just a European debate.

The Likely Path To Passage

Right now, the US Senate is the main battleground for cannabis reform. Various bills have passed the House over the last decade only to be shot down in the Senate. It is also unclear whether Schumer has enough bipartisan support to carry the bill through to passage this time – and whether, once also passed in the House, the reconciliation between both bills could happen before the midterm elections.

On the other hand, the German timetable for reform is more likely to create a bill that passes both the Bundestag and Bundesrat, and further on a timetable now alluded to by national politicians.

For these reasons, while it is also very plausible that both debates will drive each other, it seems that Germany (and beyond that Europe) is likely to take the plunge into recreational reform on a schedule ahead of the US.

Switzerland Legalizes Medical Cannabis And Allows Exports

The Swiss government has joined other European countries in fully legalizing medical cannabis for domestic use, and export

Switzerland is moving forward on its own path to full legalization. With a federal recreational trial pending, the country has now fully and formally legalized medical cannabis use. This has been achieved by amending the Swiss Narcotics Act to change the status of cannabis.

As a result, as of August 1, Swiss patients can obtain medical cannabis via a simple prescription from a regular doctor. Up until now, patients had to obtain special permission from the Federal Office of Public Health. The government has justified this new development by stating that the demand for authorizations has created a huge administrative burden and slowed down medical treatment.

There are currently about 3,000 authorizations for medical cannabis use in Switzerland, issued for patients suffering from cancer, neurological conditions, and MS. The authorization for exceptional use was authorized in 2019. Beyond this, there are an untold number of patients who have also obtained cannabis from the illegal market.

The Transition to Cannabis Normalization

The University of Geneva published a study in June that estimated that the economic impact of legalization in Switzerland would generate an estimated $1 billion in revenue and create about 4,400 full-time jobs. An earlier study published two years ago estimated that the value of the national cannabis market would be about half that.

Obviously, both figures are just guestimates. There is really no way to understand both recreational and medical demand until both are fully normalized.

The Impact on European Legalization

Switzerland is located in Europe but is not a member of the EU. Regardless, the steady progression here towards a normalized market has clearly helped drive the conversation elsewhere. This starts with Germany. However, it also includes countries like Malta, Luxembourg, and Portugal on the recreational side of the debate, and beyond this, Spain, Greece, Italy, and the Czech Republic on the purely medical side.

The path to legalization in Switzerland is also being achieved through a slow normalization of medical use while beginning a limited trial in key cities later this year.

As a result, it is obvious that the Swiss example will be studied and considered as other countries begin to make moves in this direction. One of the more interesting aspects of the same is that Switzerland has also effectively lifted some kinds of regulation that are applied to the industry elsewhere – including GMP and Novel Food. How this will work externally is another question as Swiss products are exported across international borders.

Regardless, the small steps Switzerland is making now will certainly forward the entire debate, both here, and in their immediate surroundings.

The future is increasingly now.

The End of Israeli Public Cannabis Companies?

Before the pandemic, the Tel Aviv Stock Exchange was bubbling. Now the Tel Aviv Exchange is dropping the Cannabis Index. What gives?

In what is going to be a blow to the idea of a public cannabis company in Israel, if not beyond, the Tel Aviv Exchange has dealt another blow to the public cannabis company model. Namely, it is dropping the so-called Cannabis Index.

Just three years ago, both celebrities and public figures were being avidly recruited by Israeli cannabis companies to promote themselves to investors and raise their stock value. Much like in Canada, many Israeli companies that went public did so by merging with an existing shell company already listed on the exchange. After their debut on the exchange, at least initially, stock values soared. 18 months ago, the exchange then created its own Cannabis Index, although many doubted how useful this would be. The biggest reason for such early doubts? There were actually very few companies listed on the exchange, and as a result, it was dominated by just a few companies. In fact, the value of the exchange was mainly based on the valuation of just one company.

After soaring in value, the cannabis bubble burst, and the worth of the index has now dropped 70%, leading to the decision to delist it, as of this Thursday, August 4.

Are Public Companies the Future of The Cannabis Industry Anywhere?

While there are successful public cannabis companies, the continued roil of their worth on the public markets continues to be controversial. For example, Canopy Growth, by far the market leader both domestically and during the first expansion overseas, to Germany, was just delisted in Canada.

Part of this painful arc is the huge costs that have been required to both build certified facilities as well as gain market share. The largest companies have gotten this way by acquisition rather than organic growth.

Part of this is the growth of the industry, in all places, almost simultaneously.

In Israel, the Pandemic is also surely partly to blame.

Not all public cannabis companies are doing badly. But the reality is as the industry goes into its next iteration that public companies are not necessarily the only model, or the best one, to create a profitable company.

The Israeli exchange may be headed for extinction, but the idea of a public cannabis company is not.

For all the excitement about recreational legalization, one thing is increasingly abundantly clear. The structure of cannabis companies themselves is far from a given – and public companies may not (yet) be the best or ideal way to raise cash and conduct global operations.

While there are increasing numbers of public pot companies globally, it is also clear that there have been some gigantic missteps too.

Recapping A Historic International Cannabis Business Conference In Berlin

Whether you are a passionate cannabis enthusiast or just a passive cannabis industry observer, you are surely well aware of the fact that Germany is trending towards implementing adult-use cannabis legalization, and with it, a regulated adult-use industry. Germany may not be the first nation to pursue such a nationwide public policy and industry evolution, however, it is the most significant effort of its kind to date.

Germany is home to the fourth-largest economy on planet earth, with only the economies of the United States, China, and Japan ranking higher (as measured by GDP). Cannabis may be legal at the state level in some parts of the U.S., yet federal legalization still remains out of sight and nationwide cannabis sales are even further out of reach. China and Japan have no current plans to legalize cannabis, and for that matter, the rest of the countries on the list of ‘top ten economies on earth’ will maintain prohibition for the foreseeable future with the exception of Canada.

Canada is currently the only G-7 nation that allows regulated adult-use sales and has served as the top ‘legal cannabis economy’ on the planet since launching nationwide adult-use sales in late 2018. Once Germany launches nationwide cannabis sales, which could come as early as 2023, it will instantly take over the title of being home to the largest cannabis market in the world.

Germany’s economy is over twice the size of Canada’s economy, and the same is true when comparing the two nations’ populations. Canada only shares a physical border with one country, the United States, and many border states now have their own adult-use industries. Germany, on the other hand, shares physical borders with nine countries – the most in Europe. Barring any unforeseen policy changes, Germany will be an adult-use sales oasis in the region to a large extent, with Germany and the surrounding countries’ populations adding up to roughly a quarter billion people. The significance of legalization in Germany cannot be overstated.

Georg Wurth on stage Berlin International Cannabis Business Conference 2022

Given the context of what is going on in Germany right now, Berlin served as an amazing backdrop to the International Cannabis Business Conference which took place on July 19-20th at the Hotel Estrel. It was the fifth installment of the B2B conference in Berlin, the largest of its type in Europe, and with so much excitement about what is going on right now in Germany, it proved to be an experience of a lifetime.

The attention of virtually every member of the emerging global cannabis industry has been squarely on Germany this year, and it was very evident throughout the conference that the excitement level was off the charts with so many people finally meeting in person to discuss everything. You could really sense that everyone was eager to get back to attending events in person, to learn more about what is going on in Germany and Europe, and to share what is going on in their own respective jurisdictions.

A major theme of this year’s historic conference involved cohorts representing over 85 countries traveling to the event, creating almost a ‘United Nations of cannabis’ environment. One thing that we have always strived to do at the International Cannabis Business Conference is to connect people from all over the globe, and it was exciting to see that on full display at this year’s Berlin conference on such a grand scale.

expo floor

Germany, for obvious reasons, is a very exciting place for cannabis and what is going on there will have a butterfly effect on the rest of the world. However, there is plenty of other significant things happening elsewhere on the planet, and that was evident in much of the networking that occurred throughout the two-day B2B conference. Entrepreneurs, policymakers, investors, and industry service providers from nearly every corner of the world were comparing notes, striking deals, and discussing plans for the future.

It was very inspiring to see each and every time, and it was truly symbolic of the current state of the cannabis industry. The cannabis industry is going global. Historically, legal cannabis markets were entirely confined by national borders. Exports and imports have slowly ramped up in some nations over time, but make no mistake – the future of the cannabis industry will largely play out on the world stage and the cannabis plant is going to go mainstream at a global level in the coming years, which was talked about over and over at the Berlin conference by participants in discussions that often included representatives from multiple continents.

burkhard blienert international cannabis business conference berlin 2022

The most historic moment of the conference, and arguably the most historic moment of any cannabis conference to date, came via the day one keynote address provided by Mr. Burkhard Blienert. Mr. Blienert currently serves as Germany’s top drug policy official and is overseeing the nation’s adult-use cannabis legalization and industry implementation process. It is the first time in history that a currently-serving official at that level has ever spoken at a cannabis conference, and right in the middle of the public policy reform process no less. Hearing from Mr. Blienert in the midst of everything that is going on in Germany and Europe was truly special and an experience that attendees will no doubt cherish for years to come.

The two-day conference was packed with other world-class speakers and panels, videos of which can be found on the International Cannabis Business Conference YouTube channel. Topics for panels and presenters included, but are not limited to:

  • Ongoing activism and advocacy
  • Medical cannabis policy
  • Cannabis policy in Germany
  • Shifting cannabis policies in Europe
  • Evolving industry standards and regulations
  • Emerging markets
  • Supply chain and logistics
  • Legalization models
  • Cultivation
  • Sustainability
  • Consumer trends
  • Investing opportunities

If you have been involved in cannabis for any significant duration of time, then you know firsthand that there are certain times and places when you realize that you are in the midst of history being made. For people in attendance at the International Cannabis Business Conference B2B event in Berlin this summer, it was absolutely one of those times. The networking and learning opportunities were unmatched, and never before has such a wide array of cannabis industry representatives from so many different countries come together under one roof at the same time.

Morgan Heritage

As always, it isn’t an International Cannabis Business Conference event without an amazing after-party, and this year’s after-party was particularly epic. Multi-Grammy awarding-winning reggae band Morgan Heritage kicked off their European tour at this year’s after-party event in Berlin. They were joined on stage by reggae pioneer Rocker-T, and collectively they rocked the house. The concert in such an intimate setting was the perfect way to unwind and celebrate after networking and learning. International Cannabis Business Conference founder Alex Rogers also rocked the mic on stage with the crew for a time, proving once again that the International Cannabis Business Conference works hard and plays hard.

The International Cannabis Business Conference team is already working hard on the next conference in Berlin which is currently slated to take place June 29-30, 2023. It’s quite possible that it could be the first conference in the new adult-use legalization era in Germany, which is an extremely exciting thought. With so much going on in the emerging global cannabis industry right now, particularly in Europe, the 2023 conference in Berlin is a must-attend. We look forward to seeing you there!

canmar

Cannabis Smuggling Continues To Decline Along US/Mexico Border

Cannabis advocates have long pointed out that when cannabis is prohibited, people still consume it. That may seem obvious, however, cannabis prohibitionists try very hard to pretend that it’s not the case.

Under prohibition, cartels largely control cannabis sales. That is not to say that every single piece of cannabis is cartel controlled. Surely there are people cultivating small amounts where cannabis is prohibited and presumably some of them are selling it to other people.

In a regulated cannabis system, many consumers and patients will gladly make their purchases at licensed outlets, even if it is a little more expensive compared to unregulated sources.

That is on full display along the border shared by the United States and Mexico where cannabis seizures continue to decline year after year as legalization continues to spread north of the border. Below is more information about the latest numbers via a news release from NORML:

Washington, DC: Federal officials report a significant drop in the quantity of marijuana they are seizing at the US international border, according to data compiled by the US Department of Homeland Security.

According to reporting provided by borderreport.com, “Department of Homeland Security agencies in FY2021 seized 160 tons of marijuana, an average of 874 pounds a day. With three months left in the current fiscal year, agents have seized 56 tons, an average of 408 pounds a day.”

The year-over-year decline in marijuana-related seizures at the border is in stark contrast to more generalized data showing a 25 percent increase in overall drug-related seizures. However, it is consistent with longstanding trends previously reported by the US Drug Enforcement Administration that determined, “In US markets, Mexican marijuana has largely been supplanted by domestic-produced marijuana.”

Separate data provided earlier this year by the US Government Accounting Office reported that “most drug seizure events [at the US border] involved only US citizens (91 percent), of which 75 percent involved the seizure of marijuana and no other drugs.” Of those seizures, 69 percent involved only personal use quantities of cannabis.

Additional information on drug-related border seizures is available from the US Customs and Border Protection agency.

License Process To Cultivate Cannabis In Ghana Deemed Unconstitutional

Ghana is one of several countries on the African continent that is working towards making a meaningful impact in the emerging global cannabis industry.

In 2020 policymakers in Ghana passed the ‘Narcotic Control Commission Act’ which, among other things, created a process by which entities could obtain licenses to cultivate low-THC cannabis for industrial and medical use.

The measure was far from revolutionary, in that low-THC cannabis is already cultivated for industrial and medical use in a growing number of countries around the world. Thailand, for instance, allows any household in the country to obtain government permission to cultivate low-THC cannabis.

With that in mind, it was very defeating when Ghana’s Supreme Court recently deemed the new licensing process in Ghana to be unconstitutional. Per Ghana Web, the decision seemed to hinge on a procedural technicality.

Ghana’s Constitution was implemented in 1992 and stipulates that any measure that is passed by a committee must also go to Parliament for full debate and passage before coming into law.

It’s nuanced, but four out of seven justices apparently felt that the licensing process gave too much decision-making power to the newly formed Commission and Minister, with the three remaining justices dissenting.

It was a very close decision, decided by only one vote, and given the fact that cannabis is not going anywhere, it’s very likely that this isn’t the last chapter in this licensing saga in Ghana.

Survey Finds Majority Support For Medical Cannabis In Brazil

Medical cannabis is technically legal in Brazil, however, the country’s medical cannabis program is extremely limited. For most patients, safe access does not exist, and for the limited number of patients that do have safe access, it’s almost entirely based on imported medical cannabis products.

Back in June 2022, Brazil’s top Court ruled in favor of three patients that sought to cultivate their own cannabis. The Court at the time seemed to indicate that it felt that Brazil’s government was purposefully trying to hinder safe access. Per prior Associated Press coverage of the decision:

Judge Rogério Schietti said the top court’s panel acted because the government had failed to take a scientific position on the issue.

“The discourse against this possibility is moralistic. It often has a religious nature, based on dogmas, on false truths, stigmas,” Schietti said. “Let us stop this prejudice, this moralism that delays the development of this issue at the legislative, and many times clouds the minds of Brazilian judges.”

PoderData recently surveyed voters in Brazil to gauge their level of support for medical cannabis. It’s not the first time that the company surveyed voters on the issue, and while there was a decline in support compared to their last survey conducted in January, the results still demonstrated that a majority of voters support medical cannabis. Per UOL:

A survey by PoderData , released this Tuesday (26), pointed out that the approval of the use of cannabis for medical treatments has decreased . In January, 61% of those surveyed were in favor of legalizing the medical use of marijuana. In July, this index dropped to 54% .

Those who were against the release in January were 26% , a number that grew to 37% in July.

Every suffering patient around the world deserves to have safe access to medicines that they find to be effective at treating their condition(s). That is true when it comes to cannabis as well as every other form of safe, effective medicine.

Patients shouldn’t have to rely on court decisions for safe access protections, if for any reason because not every court decision pertains to every patient. Just because three patients can cultivate medical cannabis doesn’t necessarily mean that it applies to every situation.

Suffering patients in Brazil need lawmakers to stop the footdragging, to step up, and to pass legislation that will yield permanent safe access solutions.