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Spain On The Verge Of Medical Reform But Many Questions Remain

Written by Marguerite Arnold on . Posted in Policy.

The Spanish Socialist Workers’ Party introduced a bill to legalize medical cannabis – but many advocates claim it won’t change the status quo

The home of the cannabis club is now considering medical cannabis reform. A bill to legalize medical use was introduced on May 30.

The legislation intends to create access in hospital pharmacies for a limited number of conditions – and further via prescriptions from medical specialists. Beyond this, it will require medical cannabis patient data to be stored at the Spanish Agency of Medicines and Medical Devices (AEMPS).

The Spanish Health Commission is currently debating the bill and is scheduled to approve the bill, plus any amendments they make, by June 23. If the legislation gets through this step successfully, the text of the bill will be delivered to the government who is expected to approve it into law by the end of June.

What Changes?

Spain has cannabis clubs that have developed in the grey areas of the law – much like the coffee shops in Spain. However, as advocates point out, this legislation will do little to draw patients into a legal, regulated medical market. For starters, only three health conditions will be approved for medical cannabis. Flower will not be allowed.

This means that the vast majority of patients will still be left in limbo.

Beyond this, there are no calls to revise the current situation regarding local production. Namely, all cannabis produced under EU GMP regulations must still be exported.

As a result, it is unlikely much will change in Spain (for now).

A Basic Holding Action

One of the great ironies about the Spanish situation is that it is a country where there is actually more “freedom” to access flower cannabis than just about any other European country except Holland. Beyond this, the country has one more GMP cultivation license than Germany – but none of this is slated for use by resident Spaniards.

In effect all this new legislation does is create a tiny window for legal medical cannabis treatments that are too expensive to access for most – along with prohibitive medical bureaucracy that will prevent even legitimate patients from seeing a sympathetic doctor.

The bottom line is that the Spanish government is actually doing the minimum necessary to ensure that it keeps in step with its European partners on the medical front while continuing to push not just medical users but the entire recreational industry into the margins.

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Brazilian Superior Court Approves Cannabis Home Grow For Patients

Written by Marguerite Arnold on . Posted in Policy.

The South American country is following a trend increasingly seen in Europe in allowing patients the right to grow cannabis at home

It is not just in Europe where home grow is a la mode these days. Last week, Brazil’s highest court voted to allow home grow and oil extraction after three patients took their case to the Superior Court.

Brazil has moved forward relatively significantly on the cannabis reform front. After allowing GMP production domestically and medical products to be imported into the country, the issue of formal medical reform is now a topic in the pending presidential race.

As a result, the Superior Court’s decision to allow ill patients to grow their own plants and extract oils from them is significant. It means that even if pharmaceutical producers setting up shop to export to the rest of the world never distribute their products domestically, Brazilians with chronic conditions can access cannabis medicines – even if they cannot afford the expensive imports.

This puts the country ahead of others – including many in Europe like Germany – where patient home grow is still a contested and highly controversial topic.

Sustainable Cannabis?

One of the more interesting implications of the home grow decision in Brazil is how the country will regulate this part of the industry. One of the larger problems facing the country right now is rainforest deforestation – including by drug gangs who ship their products internationally. Patient “home grow” might well become a highly unsustainable crop that is grown in conditions that destroy this valuable resource.

Because there is no legislation, only litigated court decisions at this point, further regulatory guidelines on what (and how much) patients can grow without running afoul of drug trafficking charges are going to be a necessity.

The good news is that the majority of presidential candidates are willing to go on record supporting more or less comprehensive medical reform. If the sitting president Jair Bolsonaro loses this election, there is a good chance that his replacement will formalize the court’s decision into formal guidelines.

Beyond this kind of advancement, however, do not look for any radical move on the recreational front – at least not for the next couple of years.

In the meantime, however, patients will be safe from prosecution as the country figures out where it will sit in the internationally legalizing league of cannabis nations.

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Luxembourg Presents Draft Law On Cannabis Legalization

Written by Marguerite Arnold on . Posted in Policy.

Last week, Luxembourg unveiled its draft recreational cannabis bill – but what comes after home grow?

Citing the German government’s decision to move forward on the legalization of cannabis for recreational purposes, the Luxembourg government unveiled its own draft proposal. The bill is intended to create a law allowing every Luxembourgian over the age of 21 the right to use cannabis in private, for recreational purposes.

Adults in Luxembourg will also be allowed to grow up to four plants in their own apartments or houses – but the plants cannot be visible in “public spaces.”

Home grow proposals, however, are at least this summer, starting to open up interesting conversations in countries from Portugal and Italy in the EU to Brazil in Latin America.

Is That All?

Limited home grow is certainly an improvement to the status quo. Currently fines for cannabis use in the public range from 250-2500 euros. The legislation would lower these fines (to no more than 500 euros).

The Minister of Justice however has also described the legislation as the “first stage” of implementing the promise of the liberal-green-social democratic alliance that made the promise to legalize cannabis by 2023.

The second step would, according to government sources, create a national production and supply chain that would also be under government control and auditing.

Home grow, black market, legit market

Getting rid of the organized crime link to the black market is increasingly a reason to legalize cannabis that is showing up in political discourse now all over Europe. Portugal, for example, is also now moving forward with implementing a law that would allow people to grow up to five plants.

The reality is that most people – whether they are patients or casual users, prefer to buy their cannabis commercially. That is why the home grow proposals now floating around Europe are important – but clearly only a precursor to the legit, regulated, and recreational market. The questions about how to implement commercial retail recreational cannabis however is only really beginning – and not just in Luxembourg.

In Canada, where the right to grow at home for medical purposes was established at the Supreme Court level at the turn of the century, patient collectives currently pose the largest threat to the legitimate industry there is. This is why similar developments in Europe will be interesting to watch – especially where medical use is legal but may or may not be covered by insurance.

This is also why, in all probability, home grow for medical use will probably not be decided legislatively but rather through the courts.

Home grow may be politically a la mode right now – but the really hard questions are still being left off the table everywhere.

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Limited U.S. Legalization Continues To Hurt Cartels In Mexico

Written by Johnny Green on . Posted in Policy.

Historically, the United States has served as the largest cannabis market on earth, and for many decades that market was completely illegal. These days, medical and/or adult-use cannabis dispensaries are located in a growing number of states, although cannabis still remains illegal at the federal level. The rising number of state-legal outlets in the U.S. is having a direct, negative impact on cartels in Mexico according to a new report from U.S. Congressional researchers.

Throughout prohibition in the U.S. cannabis smuggled into the country from Mexico largely supplied the unregulated U.S. market. Having lived my entire life on the West Coast of the U.S., and consuming cannabis for nearly 3 decades now, I can personally attest that ‘brickweed’ from Mexico was once very common around here. That is no longer the case.

The Rise Of Safe Access

Cartels in Mexico benefitted greatly from cannabis prohibition in the United States. The cannabis that they smuggled into the United States was awful and was presumably contaminated with all kinds of nasty stuff. Unfortunately, for many consumers and patients, it was all that was available. That started to change drastically in 1996 when California became the first state to legalize cannabis for medical use in the U.S.

Once California passed a medical cannabis measure, it opened the floodgates to other states following suit, almost all of which created safe, legal access to cannabis in some manner. Every dispensary and delivery service that opened up at the state level, especially in the Western United States, diverted money to state-licensed cannabis outlets that would have otherwise likely gone to cartel operations.

The shift in consumer purchasing habits further accelerated in 2014 when Colorado and Washington State launched adult-use cannabis sales. With state medical programs, patients had to be registered in order to frequent dispensaries. Now that consumers of legal age from all over the country (and the world for that matter) can make legal purchases of regulated products through licensed outlets there’s literally no good reason for people to ever purchase cartel cannabis ever again, hence the drop in cannabis revenue for cartels.

Proof Of Concept

Many valid reasons exist regarding why cannabis should be legalized, with a popular one being to defund cartels. Cartels have caused so much misery over so many years, and any dollar that can be prevented from going their way is always a good thing. Legalization in the United States is proving to be extremely successful on that front, as demonstrated by the latest Congressional report.

Cartels still smuggle cannabis into the U.S., and still set up illegal grows on public lands in the U.S. However, that business model is becoming less viable with every passing year as consumers continue to migrate towards legal options. Imagine when cannabis is legal nationwide in the United States. Obviously, once all consumers and patients in every state can go the legal route, there will be no room for cartel cannabis in the country, assuming that regulations are sensible and prices are at least somewhat competitive.

Just as legalization will continue to succeed in the United States, so too will it succeed elsewhere, and in the process, eliminate cartel cannabis worldwide. When cannabis is illegal, cartels will fill the void. After all, consumers and patients don’t refrain from consuming cannabis just because it is illegal. They will continue to seek out sources for cannabis, and cartels will always be willing to meet the demand. The more that the legal cannabis industry is allowed to operate the more it can directly address the cartel cannabis issue, and when that happens, everyone wins (except for the cartels).

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Thailand’s National Cannabis Cultivation Program Is Off To A Strong Start

Written by Johnny Green on . Posted in Policy.

On June 9th, just a little over a week ago, Thailand embarked on a new cannabis public policy journey when it implemented its new national cannabis laws, and with it, launched a nationwide program in which households can sign up to cultivate low-THC cannabis.

The new cultivation program is the first of its kind on the entire planet, and it has proven to be so popular that on the first day that people could sign up for the cultivation program the government app used to sign households up crashed. Apparently, the app received over 9 million applications on just the first day alone.

As of the morning of June 12th, just three days after the launch of Thailand’s cultivation program, over 650,000 households had already signed up and received notifications to cultivate cannabis. It’s a truly historic time in Thailand, and I reached out to Mr. Wisan Potprasat, President of the River Khwae Herbal Therapeutic Center, for his take on what is going on in Thailand.

Mr. Potprasat is the President of the River Khwae Herbal Therapeutic Center (RHTC), President of Community Enterprise Network of Western Herbal Alliances, and the CEO Cannabis Medical Industrial Estate Association of Thailand. Below is what he had to say:

For more than 88 years, the cultivation and consumption of cannabis in Thailand has been banned by law, although cannabis has played a very important role in traditional Thai medicine in the past.

Many specific cannabis strains seemed to have been lost and it was not possible to carry out research and studies on cannabis breeding over this long period of time.

In recent years, the Thai government has understood that cannabis does more good than harm and so they began to gradually adapt the laws. This opened the way for domestic farmers to create a new income opportunity. In addition, cannabis can be used again in traditional Thai medicine and as a basis for new medicines for the population. On July 9th, a new law came into force that allows the possession, cultivation and consumption of cannabis under certain conditions (THC content must be below 0,2%). Thailand is the first country in South-East Asia that does such a big step in its laws. This important milestone finally decriminalizes the handling of cannabis for private individuals. This will help establish a healthy relationship with the plant that has been cultivated for generations.

As soon as Thailand changed the law in 2018 and allowed to use cannabis for medical purposes, we at RHTC started rediscovering the ancient Thai cannabis strains and bringing them back to Thailand. Luckily, many varieties were rediscovered in neighboring countries, where they “survived” in private gardens for several decades. From the beginning it was important to us to build up a network with local farmers in order to rebuild the Thai cannabis industry together with them. We impart knowledge about the cultivation of cannabis and use modern technology to ensure sustainable cultivation with zero waste and pollution. The perfect climatic conditions in Thailand together with the irrepressible diligence and drive of our young growers ensure that we have now become the largest cannabis producer in Asia. The gradual opening up of laws by the Thai government has enabled us to re-cultivate the ancient cannabis strains of Thailand and it makes as very proud that in the meantime we can offer the best quality in the world.

In the future, of course, further steps and changes in the law will be necessary to further simplify the cultivation, processing and, in particular, trading of cannabis and its products. There are already wider draft laws on cannabis control being discussed in the Thai parliament. However, thanks to the Thai government’s constant and determined legal steps in the right direction, we have already achieved a major lead compared to the rest of the world.

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Ten New German Government Positions For Cannabis Legalization Announced

Written by Marguerite Arnold on . Posted in Policy.

The government has budgeted ten new positions to oversee the legalization of cannabis

If there is a “sure thing” in the world of German politics, it is when budgets are involved in pending policy. That is why, given all such signs this spring, cannabis legalization is pretty much assured – even if the details are not.

Earlier this spring, the Bundestag budget committee threatened the Ministry of Health that it would withhold its PR budget if a passable bill were not introduced by this summer. Now it appears there is even more movement on the fiscal side of things. Namely, during federal budget discussions, ten positions have been funded to oversee the process of legalization. Two are within BfArM – the medicines and medical devices agency that currently oversees the medical market – and eight are within the Ministry of Health.

In doing so, Germany seems to be taking a page out of the Canadian model to date. Currently the government’s “Cannabis Agency” is located within BfArM. However, this agency is an “independent authority” within the Ministry of Health’s “portfolio.” The Cannabis Agency was set up in 2017 as the government authorized the cultivation of medical cannabis domestically and then launched a tender bid for licenses for the same.

The process was also an almost complete disaster. The issued bid was for a tender that was too small for demand, and lawsuits dragged the selection process out for almost two years.

At least this time, the government is not making noises about excluding German citizens and firms from the process.

What To Expect

While details so far have been missing in action, there are a few developments which seem assured. The first is that private dispensaries will be licensed – and the people who run them trained in basic narcotics handling techniques. Whether dispensary employees will have to go through some kind of pharmacy training does not seem so outlandish.

The second thing to expect is that this process is going to be highly bureaucratic – and if the medical tender was any indication – may end up in court. There are several reasons for this, starting with the possibility that the first domestic cultivators and distributors for the recreational market will be drawn from the ranks of those who already have licenses.

If this is the case, there is also every possibility that the entire process will be sued again – starting with challenges under anti-monopoly legislation.

Regardless, there is perhaps one sure thing in all of this. Expect the unexpected. More developments soon.

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The Pending Spanish Paradox

Written by Marguerite Arnold on . Posted in Policy.

The Spanish government is finally voting to legalize medical cannabis at the end of June – but only for exporting cultivators

The land of the cannabis club is moving forward, albeit frustratingly, on medical cannabis reform. Namely, if everything goes as planned, the Spanish government will finally vote to legalize the cultivation of medical cannabis at the end of June. Further, they will also issue (more) licenses for EU GMP cultivation. There are currently four – and the Spanish authorities have steadfastly refused to issue any more for the past five years (at least in the past) citing concerns that they will just be resold.

It would appear those days are over. However, the basic rules for the market will remain the same. Firms may be able to gain cultivation licenses more easily, but everything they grow they must export.

That is not a real change from the status quo now. In fact, it could be argued that this is just a federal vote to preserve the status quo.

Patient access will not be any easier – and presumably could be worse – because patients will have to go through the formal medical system – or the clubs. Cost will remain a major impediment.

Just Like Holland and Greece Used to Be

No matter how far the now pending proposals push the conversation, it is an inherently limited one. Namely, this is a cynical proposal to pass legislation that won’t change what already exists now. Cultivation licenses might be more available – but they will still only be accessible to those with the budgets to set up EU GMP facilities. And as Greece found out, setting up an infrastructure to attract foreign investment in cultivation and extraction only goes so far when the sole business model is to supply those out of the country.

In fact, it appears that Spain is currently on track to have a two-tiered production model. The pharma grade one – and the grey market one that services the clubs. This also did not work in Holland.

Why Is Spain Lagging Behind on Reform?

There is only one answer for why the Spanish government has consistently failed to forward the industry in an environment where approximately 90% of the population believes that at least medical cannabis should be legal. And that is that the government has not learned the lessons seen in other legalizing countries (even though they will be establishing a panel to explore that specifically as of the end of this month).

It is also obvious that the country is in a holding pattern – waiting for Germany to flip the switch to recreational. Once that happens, given the amount of German money in the Spanish economy, it may be that Spain will follow. They are certainly not leading.

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Ukraine Moves Closer To Legalizing Medical Cannabis

Written by Frank Schuler on . Posted in Policy.

Days ago Ukraine’s cabinet approved a draft medical cannabis bill, sending it to Parliament for consideration. Compared to other countries in the region, Ukraine has been very slow to reform its medical cannabis policies.

“The Cabinet of Ministers of Ukraine supported the bill that will regulate the circulation of cannabis plants for medical, industrial purposes, scientific and scientific-technical activities. This bill will expand patients’ access to the necessary treatment for a number of diseases, including cancer and post-traumatic stress disorder.” Ukraine’s Ministry of Health stated in a news release.

“We understand the negative consequences of war on the state of mental health. We understand the number of people who will need medical treatment as a result of this impact. And we understand that there is no time to wait. Therefore, we have already prepared a legislative basis to ensure a full cycle of cannabis-based drug production in Ukraine: from cultivation and processing to full-fledged production.” Minister of Healthcare Viktor Liashko wrote in a Facebook post about the measure.

“At the same time, we still propose to establish strict control over the cultivation, production and implementation of drugs, understanding the sensitivity of this issue in society and are ready to gradually develop this industry, showing the results of treatment and help oh to Ukrainian patients. Not to import, but to do ours, Ukrainian! Historically, cannabis-based drugs have been used to reduce pain, spasms and muscle strains, treat anorexia, PTSD, and anxiety disorders. In addition, they are used in the treatment of individual types of epilepsy, glaucoma, psoriasis, parkinsonism, multiple sclerosis. An important purpose of this medication is to alleviate the pain and suffering of seriously ill and palliative patients, including cancer patients and HIV patients.” Liashko went on to write.

According to the Ukraine Ministry of Health’s news release, the measure would ‘License economic activities for the cultivation of varieties of plants of the genus Cannabis for medical purposes’ as well as ‘authorize the cultivation of varieties of plants of the genus Cannabis for medical, industrial purposes, in scientific and scientific-technical activities.’

The measure now moves to Ukraine’s Parliament for consideration.

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Germany Moving Forward With Legal Cannabis Sales Plan

Written by Johnny Green on . Posted in Business, Policy.

Germany’s Health Ministry announced today that it will start holding hearings tomorrow to discuss various aspects of legalizing cannabis sales for adult-use nationwide. It’s a huge announcement and moves Germany one step closer to inevitably launching legal adult-use sales nationwide.

As of right now, only one country, Canada, allows legal adult-use sales nationwide to anyone of legal age. Uruguay also has legalized cannabis for adult use, however, sales are limited to the citizens of Uruguay. Malta has also passed a legalization measure, however, Malta’s current legalization model does not permit sales.

Global Economic Powerhouse

Germany is home to the fourth-largest economy on earth, and its population is more than twice the size of Canada. It appears that, at least for the time being, when Germany launches legal adult-use sales it will be a cannabis oasis of sorts, having a virtual adult-use sales monopoly on the continent.

With that in mind, Germany’s adult-use industry will be massive and unlike anything we have ever seen in the global cannabis community. The hearings that will start tomorrow will involve hundreds of representatives from various backgrounds, including representatives from the medical and legal fields.

What Will The Hearings Involve?

Much of what will be discussed will apparently revolve around quality control and limiting youth access to cannabis, and the current plan seems to involve a comprehensive evaluation four years after the launch of sales. In total, there will be five hearings and all of them are expected to be completed by the end of this month.

What is eventually discussed at the hearings will then be used to craft national rules, regulations, and laws that pertain to adult-use cannabis sales. The sales component is just one facet of Germany’s effort to legalize cannabis for adult use.

Leaders in Germany previously indicated that home cultivation would also be a part of an eventual legalization measure that will eventually be introduced, which is expected to happen as soon as this summer. The significance of legalization in Germany cannot be overstated. It will usher in a new era for the cannabis industry, in addition to encouraging every other country in Europe to end prohibition.