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Basel, Switzerland Becomes First Canton To Kick Off Recreational Cannabis Trial

The trial will allow up to 400 participants to buy their cannabis in pharmacies – in exchange for being study participants

Here is the great news. Switzerland is moving ahead with its recreational cannabis trial. The first canton to be approved by the federal government, Basel, will allow a very limited number of adults (over 18) to buy and consume cannabis legally, beginning in September.

Here are the other prerequisites. Participants will have to participate in a formal study over the next 2.5 years to determine the impact of consumption on their physical and mental health. Participants will also not be allowed to resell the cannabis they purchase. Anyone who does will be both penalized and ejected from the study.

Other municipalities, including Zurich, Geneva, and Bern all still have their applications pending – but are also expected to be given the green light in the near term.

According to official estimates, there are about 220,000 regular recreational cannabis users in Switzerland. This seems a bit low in a country of about 8.5 million people. Everywhere else, cannabis users represent about 10% of the population. However, other places, especially in North America, have not segmented out medical vs recreational users as their markets get going.

Only time will tell.

Medical cannabis is legal in Switzerland – however, just like in other places, it remains extremely expensive and hard to come by. Physicians must obtain special approval to prescribe and at present, there are only 2 pharmacies allowed to dispense it.

Why Does the Swiss Trial Matter?

For those used to legalization in other jurisdictions, the Swiss approach seems a bit limited and more than a lot complicated and bureaucratic. However, it represents, in its own way, an important step in Europe towards recreational reform, which has been fought if not delayed almost everywhere by authorities and politicians alike.

This trial will, undoubtedly, reveal what those in North America already know, albeit with less formal data to support it. Namely, those who consume cannabis are not criminals, couch potatoes, or drawn from the dregs of society.

Beyond this, however, a formal trial will begin to finally and definitively answer many of the questions if not counter persistent stereotypes that are still being thrown about by those who oppose the inevitable. Namely consuming cannabis is less harmful than alcohol, and those who consume other illicit drugs, along with prescription substances, tend to use less of these as they transition to cannabis.

Of course, the trial is also being avidly watched just about everywhere else in Europe where the question of legalization is a burning political issue, no matter how many people downplay its importance.

The data from the Swiss trial is also likely to show up in every debate going forward, starting with DACH trading partner Germany.

Switzerland’s Federal Court Decriminalizes Minor Possession Of Cannabis

The Federal Court of Justice has just ruled in favour of decriminalizing possession of up to 10 grams of cannabis

In a move that is well-timed – namely right before the new Swiss recreational cannabis trial begins, the Swiss Federal Court of Justice has decriminalized minor possession of cannabis. The ruling is in support of a District Court of Zurich decision in 2016 when a student refused to pay the fine for possessing 8 grams.

News moves quickly in the cannabis world these days. In Zurich, the City Council has already taken an official stance on decriminalization based on the court’s ruling.

Why Is This Important?

There are several reasons why this development is important. 

The first is that supposedly, technically, and legally, this puts a damper on fines for minor possession, hopefully for the last time. The police were supposed to stop issuing fines four years ago. Despite this, the Zurich police at least have said they will still “report small quantities” even though individuals can now no longer be fined.

However, beyond this, the implications are major both domestically and right across the border, starting with the idea that a European country (even if not in the EU) will take steps to amend its national Narcotics Act. This in turn will provide a guide for (at least) Germany which will have to do the same thing as soon as it passes some kind of recreational reform. 

Where Switzerland Goes…

While every country will implement cannabis laws in different strategies and time periods, one thing is for sure. Switzerland may be outside of the EU, but its evolving marketplace may well prove to be more of a template for other countries now moving towards cannabis legalization than either Holland (within the EU) or North American examples (the U.S. and Canada). 

This is important for several reasons, starting with the fact that right over the border in Germany, there is already a fierce debate about the form that the German retail cannabis market may take. Switzerland’s approach, namely backing distribution into pharmacies and social clubs, may well in fact be a model that Germany also adopts, at least initially.

Beyond this, however, it is conceivable that at least German legislators may well take another page out of the Swiss legalization book – namely starting a recreational “experiment” rather than full boat market all at once.

No matter what happens in the coming months, however, Switzerland at least, is clearing the books of outdated laws, and becoming a model in this regard for countries in the EU to follow.

Be sure to stay abreast of breaking developments in the European cannabis industry and attend the International Cannabis Business Conference when it returns to Barcelona, Berlin and Zurich in 2022!

Switzerland And Luxembourg Firm Plans For Recreational Markets

Two European countries, one in the EU and one surrounded by it are, after many stutters and false starts, moving concretely towards recreational markets next year.

In the last week, both Switzerland and Luxembourg have made concrete plans to formalize their recreational plans for 2022. This may indeed prove to be Europe’s tipping point year, much akin to 2014 in the US when both Colorado and Washington State defied US federal law and moved forwards with their own recreational markets.

With Holland formalizing its recreational market, and Portugal also now at a tipping point, even if much delayed, the conversation about recreational cannabis has hit Europe. 

What this will mean, however, is a different conversation.

Most if not all investment funds (for example) are still publicly at least, only talking about medical cannabis investments. 

In a blended market like Switzerland, however, this may make increasingly little difference.

Medical Vs. Recreational Production and Certification

One thing is for sure. The level of certification issued for such markets will be done at a federal level. This means, by definition, that the level of quality will be much higher than what was initially seen in the US.

In Switzerland, pharmacies will carry both kinds of products. This means that even recreational products will have to pass federal quality tests still unseen in America.

Impact on Other EU Markets

All this is happening of course at a time when Germany, still Europe’s largest medical cannabis market, is now considering the next course of cannabis reform. It is highly likely in the next two years, that the coalition government that seems to be formalizing, will at least decriminalize the plant. 

However, with trial projects going on all around it, it is also unlikely that Germany will be able to resist the clarion call for a recreational trial within the next four years. The FDP, for one, are clear about their desire for tax money that could come from the market. This will become an increasingly interesting proposition as the ravages of both Covid and the subsequent supply chain discussions now hitting the world.

Beyond this, there are clearly other EU countries hovering around this discussion even if they have not formally announced the same. This includes the Czech Republic. It may also include places like Italy and Malta where home grow is now legit, not to mention Spain.

The future indeed seems to look brighter and brighter, and it is very clear that this time it is not just another train.

Stay tuned to the International Cannabis Business Conference blog for developments about the global cannabis industry.

Switzerland Begins To Define Its “Recreational Trial” For 2022

As of May 15, 2022, Switzerland will begin a recreational cannabis trial

It is official. The Swiss have chosen a date and the trial parameters. Switzerland is going recreational as of next year.

Here are the parameters. 5,000 Swiss people will be able to legally smoke cannabis. They will be part of a trial in which will measure effects on users’ health and consumption habits. Participants, as a result, will have to accept a follow-up interview and to limit their consumption.

Those who might worry that the consumption level is a bit low? Do not. Trial participants will be able to buy cannabis at up to 20% THC. Each month, participants will be able to consume up to 10 grams of THC. To put this in perspective, patients in Germany right now are being prescribed half a liquid gram a month (to the whopping tune of about $400).

This amount, in other words, is enough to get the average user more than toasty on a regular basis. It is also enough to make sure that patients who fall through the cracks will be able to have at least some access to legal cannabis. The fact that the trial will mandate sales at pharmacies makes this even more convenient.

Why This Is Important

Luxembourg and Switzerland will, as of next year, begin to set the pace on recreational reform discussions, and not just in their own countries of course, but across Europe. From the get-go, both extracts and edibles will be in the discussion.

Beyond this, the trial is likely to have an important impact on the question of dosing and how much patients should be getting across Europe.

From the recreational side, look for important discussions about driving and working. Not to mention how long THC stays “active” in bodies long after the immediate “high” is over (when it happens).

There is another reason, however, why this trial is important. It will be the first organized attempt by the government to put cannabis on sale and study those who buy it. It is also a deliberate attempt to create a legitimate market.

It will be watched, intently, for this reason, across the region.

Be sure to book your tickets for Berlin! The International Cannabis Business Conference is returning as of July, 2021!

Switzerland Moves Forward On More Medical Cannabis Reform

The Swiss Parliament has approved an amendment to the Narcotics Act allowing doctors to prescribe cannabis without special permission and to set up a formal cannabis licensing infrastructure in the country.

Things are looking up for more patient access in Switzerland. Last week the Swiss parliament approved an amendment to the Narcotics Act which will allow doctors to prescribe cannabis more easily. At present, they must still report all cannabis treatments to the Federal Office of Public Health before writing prescriptions. Obviously, this makes the entire process much more burdensome for both doctors and patients.

The Council of States adopted the law last week. 

The bill also regulates the cultivation, production, and trading of medical cannabis.

What Does This Mean?

Switzerland so far has played a highly important role in the development of the overall discussion of cannabis reform. It is outside of the EU, even though it is in Europe. Beyond this, the country is also part of the so-called DACH trading partnership, between Switzerland, Austria, and Germany. This means fast entry into the bloc for cannabis and cannabis products – even though price is still going to be a consideration (generally everything is far more expensive in Switzerland in part because of the country’s existence outside of the EU trading alliance).

Domestically, however, what this means is that the Swiss are starting to increase access to medical cannabis via prescription as the country readies itself for a medical-recreational trial next year, to be run out of the nation’s pharmacies.

This means that all cannabis-related sales that are legit, even for adults without a prescription, are currently being channeled into the pharmacy system.

Impact on The Export-Import Discussion

What Switzerland is in effect doing is creating the first standard for the selling of both medical and recreational use cannabis that is pegged on GMP standards. This is an inevitable result in a world where the only high-percentage THC to cross borders so far (legally at least) has been GMP certified.

However, the implications are huge. While there is not enough GMP product in the room right now for the medical market, this will begin to change as more facilities now become funded and come online (particularly after Covid). What this means in effect, however, is that the Swiss are in the process of creating not only Europe’s first GMP standard market (for everything) but further will attract producers globally looking to sell products to both markets. As a result, this is likely to be a model adopted in newly legalizing states who are also looking at the continued failure of the Dutch project.

For an up-to-the-minute update on changing regulations and European markets, be sure to book your tickets now for the International Cannabis Business Conference’s return to in-person conferences!

The Swiss Step Carefully Into First Semi-Legalization Project

Recreational cannabis will be available from Swiss pharmacies as of 2022, on a limited trial basis.

If there is one word to describe the European approach to cannabis generally, it has been so far, caution. If there was another, it would be regulation. There is nothing “casual” or indeterminate in every European national approach to a conversation that is now so overdue it is burning its way into international discourse.

Even more pressing for the Swiss at this point, a non-EU nation in the middle of Europe, is the fact that their neighbours in Luxembourg are barrelling towards a recreational experiment of their own in 2022.

The solution? A national trial which will allow up to 5,000 adults per participating municipality, to purchase cannabis in Swiss pharmacies – without a prescription. Even more intriguingly, all the cannabis sold via this route must be produced domestically (it cannot be imported). Furthermore, THC content may not exceed 20%.

Prices will be set to compete with the black market – and can be adjusted on the level of THC in the strain.

Cities must submit their own plans to participate in the trial, which is intended to run for five years.

Some of the other requirements are a bit vague including proving “previous experience” with the plant as a consumer. How is one supposed to “prove” a previous experience with cannabis? No doubt the savvy Swiss will find a way.

It may not be Colorado, in other words. But it is clearly a move in the right direction. And further, it may also signal where Luxembourg’s first recreational cannabis crops will come from beyond Portugal.

A Blended Market Based on High Levels of Testing

For all the lack of opportunity – at the moment – for a “coffee shop culture” there is one thing to say about the Swiss experiment. It will be regulated, from the beginning with high levels of testing along the way. GMP levels may not be required for cultivation but testing in GMP labs is likely to become de rigeur. In Switzerland, as well as across Europe. 

There are unlikely to be as a result, any pesticide scandals rocking the nascent Swiss recreational industry.

How this hybrid approach will work is still, for the moment, in the hands of cities across Switzerland who are now tasked with coming up with detailed plans. Will it all go as smoothly as a proverbial Swiss watch? Undoubtedly not. This is cannabis reform after all. But it is a venture into territory which for the most part, most European countries are still highly loath to tread.

For the most updated information on the changing regulations of the European cannabis industry, be sure to book your tickets to the International Cannabis Business Conference when it returns to Europe, Summer of 2021.

Switzerland Clarifies Rules For Dispensing Medical Cannabis

Medical cannabis treatment will no longer require a special permit in Switzerland, although it is unclear whether health insurance will cover it.

Until now, doctors in Switzerland had to obtain a special exemption permit from the Federal Office of Public Health (FOPH) to issue prescriptions for cannabis. Last year about 3,000 permits were issued. Those days have now come to a close. According to the Federal Council, this procedure is no longer appropriate, given the rising numbers of patients. Namely, it makes treatment more difficult and delays its start. As a result, the Grand Chamber of Parliament is proposing lifting the ban on the same in the Narcotics Act.

The new law stipulates that cannabis therapy should be a matter only between doctor and patient. The government will monitor prescriptions, however, and practitioners will have to submit data on the same to the government.

Insurance coverage in Switzerland has still not been decided. So for now, patients must still cover the cost of their medications.

Will Switzerland Go The Way of Holland?

The ability to prescribe cannabis directly is one of the biggest things that began to move the German market forward – but so was the ability to obtain coverage by insurers – at least in theory. There have been multiple issues between legislation and reality, to the point that patients continue to sue for access. Indeed as of October, a new ruling by the Social Benefits court ruled that the regional approvers, called the MDK, cannot interfere in the relationship between doctor and patient when it comes to prescription for the longer term.

However, trial programs, such as the ones that exist in Luxembourg, Germany, and to some extent Denmark, are also in danger of literally being overrun by the recreational discussion now also in the room. It is far easier for patients to obtain their cannabis, barring the cost, if they do not have to interact with the medical system. Indeed, that is the decision Holland made just as Germany was making the move to incorporate coverage under the formal medical infrastructure that includes insurers and regional approvers.

Given the slow trajectory Switzerland has taken so far, despite the popularity of the non-medical “Cannabis Lite” it is not unreasonable to assume that they might too, decide that cannabis is an expensive and unnecessary medicine and leave patients to their own devices.

The jury, if not report, is still out.

Make sure to book your tickets to the International Cannabis Business Conference when it returns to Europe in 2021

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.

Tax On Cannabis Is Repealed In Switzerland

The cannabis industry is booming in Switzerland, where low-THC cannabis products have increased in popularity and availability in recent years. Since 2011, low-THC cannabis products have been legal in Switzerland for adults. ‘Low-THC’ is defined in Switzerland as having less than 1% THC. High-THC products are still prohibited in Switzerland.

Switzerland is at the forefront of a floral hemp industry that is growing in size at an exponential rate. Often billed as a ‘tobacco alternative,’ low-THC products have generated quite a bit of revenue for the government of Switzerland, however, a recent court ruling will send at least some of that back to certain companies, as well as potentially prevent future types of taxation. Per Swiss Info:

The Swiss Federal Court has ruled that cannabis – the legal, low-THC version – should not be subject to the tobacco tax.

Responding to the complaints of three cannabis production companies, the court found that there was no legal basis for a 25% tobacco tax on the sales price of cannabis. The tax will be dropped immediately.

In Switzerland, cannabis with a tetrahydrocannabinol (THC) content of less than 1% is legal. It is sold as oil, tea or directly in its flower form. Cannabis blossoms are not explicitly mentioned in tobacco tax legislation, the Federal Court stated in its ruling, which was announced on Tuesday.

A lack of tax will help the industry thrive even more than it already was in Switzerland. Without the tax, products can be sold for cheaper to consumers, and that will presumably make products more enticing for customers.

The downside of the court decision is that it will obviously lower government revenues generated by the cannabis industry. It will be interesting to see if legislation is passed to impose a cannabis-specific tax to replace the incorrectly applied tobacco tax.

Cannabis is not the same as tobacco. Studies have found cannabis, especially low-THC forms of cannabis, to be much safer than tobacco. Also, as noted in the court’s decision, not all forms of low-THC cannabis are meant to be smoked. Many products in Switzerland are topical rubs, among other smokeless options.