Tag: united states

Who Legalizes First – The United States Or Germany?

Written by Johnny Green on October 17, 2022. Posted in Policy.

When it comes to cannabis policy there are two nations that likely have more eyes watching them right now than any other countries on the planet – Germany and the United States. It is no secret that many lawmakers in Germany are working really hard right now to determine which provisions should be included in a national cannabis legalization and industry model. It is also no secret that United States President Joe Biden recently tasked federal Departments with re-examining cannabis’ current status in the U.S.

Efforts to reform national cannabis policies in both countries are making headlines, and understandably so, as both Germany and the United States are home to two of the largest economies on earth, and both countries wield tremendous political influence around the world. However, that is not to say that the efforts in both nations are on the same trajectory or timeline, as that will almost certainly prove to not be the case. One nation is far more likely to legalize at the national level soon than the other one.

Germany Is ‘In The Lead’

One thing that is always important to point out is that nothing is guaranteed in the world of politics. With so much rhetoric being thrown around by lawmakers and aspiring lawmakers, especially these days, nearly everything needs to be taken with a grain of salt. As the old saying goes, ‘actions speak louder than words,’ and from that perspective Germany is clearly farther along in its effort to legalize nationally compared to the United States.

The current governing coalition in Germany previously announced direct intent to legalize cannabis for adult-use and to launch a regulated national industry. Since that time, many members of the governing coalition have engaged with stakeholders in multiple ways, gaining insight and feedback, and working meaningfully towards their goal. The process is not going as fast as many had hoped, however, just as Rome wasn’t built in a day the same is obviously true for a country trying to launch what will instantly become the world’s largest regulated cannabis market by far.

Compare that to the United States where things are much more fractured, both from a governing standpoint and an industry standpoint. Yes, President Biden did issue pardons for simple possession and tasked Department leaders with re-examining cannabis’ current federal status. However, that is not the same as Biden taking the lead on pushing for a regulated national industry. It’s quite possible that nothing could occur between now and when Biden is up for re-election, and it’s anyone’s guess where things go from there if/when he is not re-elected.

Furthermore, Biden can only do so much, as the burden for much of the work that needs to be performed lies on the shoulders of Congress. The current Congress has failed to get even a limited legalization measure passed, and with another election looming next month, the deck will be re-shuffled and likely in a manner that doesn’t move the needle. In fact, if the needle is moved, it will likely be in the wrong direction given historical midterm election trends in the U.S.

Adding To Momentum

Make no mistake – both the United States and Germany will legalize federally sooner rather than later, although, Germany is likely to do so on a quicker timeline compared to the U.S. Whereas Germany will presumably legalize nationally in one fell swoop, the U.S. will continue to see state after state pass their own legalization measures until the point where it reaches such a critical mass that it tips the scales. And just as every state that legalizes adds to the momentum for federal reform in the U.S., so too will legalization in Germany add to the momentum of efforts in the U.S.

The United States would be a larger domino between the two countries given that the United States has historically led the charge on prohibition and its economy is bigger. Yet, that doesn’t seem to be on the horizon in the U.S. The two largest economies behind the United States are China and Japan, and neither of those countries will be legalizing anytime soon, unfortunately. That puts the spotlight squarely on Germany, and once the German prohibition domino falls it’s going to speed things up everywhere else on earth, including in the United States.

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Is The Biden White House Waiting On Germany To Move Ahead On Recreational Reform?

Written by Marguerite Arnold on September 12, 2022. Posted in Policy.

The US president is putting off further conversation about American cannabis reform until after the mid-terms. Is he waiting for Germany if not Europe beyond that, to go first?

President Joe Biden’s track record on cannabis reform is very poor. This has not changed since he entered public service in Congress.

The most recent discussion is how fast the Administration might move forward on the reforms it has promised – namely stopping the federal imprisonment of people convicted of non-violent cannabis crimes. In July, six senators sent a letter to Biden to express their frustration over the failure to substantively address the many harms of Drug War policies. They urged Biden to use executive clemency authority to help speed this up.

So far, Biden has ignored such calls. Indeed, according to Marijuana Moment, a leading cannabis policy publication in the US, as of last Friday, the President announced that he was punting any new drug reform policy until after the mid-terms.

Is Biden waiting for other countries to go first?

The Giant Discussion Over International Cannabis Policy Is On

One of the reasons that Biden may be waiting until after the mid-terms, apart from the fact that Democrats seem to be on course to do well in the off-year elections, is that he may be waiting for the conversation in Germany, if not Europe, beyond that, to proceed. It is widely expected that a draft bill of the German cannabis legalization bill will be made public either late this fall or early next year. This, along with the working group of European nations now focused on cannabis legalization (which includes Malta and Luxembourg), is the first international attempt by multiple countries to address both domestic law and international regulation.

One of the thornier issues, according to conventional wisdom, is how countries (and regions like the EU) will move forward to implement recreational reform without thumbing their noses at, or withdrawing completely from, the two main international laws that now make cannabis illegal. Namely, the 1961 Single Convention on Narcotic Drugs and the 1971 Convention on Psychotropic Substances.

Germany, after all is the fourth largest economy on the planet. America is number one, with a GDP five times larger. Nonetheless, the fact that Germany will go first, or so the rumours continue to say out of Berlin, will give political cover to those who have gone before (Canada and Uruguay) as well as those who have yet to take the plunge.

One thing is for sure. In Germany, national politicians are ready for the change, not to mention the German people – and no matter when Biden chooses to proceed, it is almost certain at this point, that Germany will go first.

Members Of German Bundestag Travel To North America To Examine Cannabis Legalization

Written by Marguerite Arnold on September 12, 2022. Posted in Business, Policy.

Eight members of the Bundestag’s Health Committee head to North America to educate themselves about how reform works in both California and Canada

A delegation of eight members of the Bundestag’s Health Committee have landed in North America to examine cannabis legalization as it is done in the US and Canada. The group will be there between September 10-17.

Cannabis legalization will, however, only be part of the discussion. The delegation will also look at how the different countries have dealt with the Pandemic, the healthcare of underprivileged people and digitalization efforts.

The delegation consists of members of the Greens, the CDU/CSU, the SPD, the FDP, Die Linke, and one member of the AfD.

A Coordinated Strategy to Move Forward on Legalization

The move comes as the Bavarian Health Minister and another CSU member of the Bundestag’s health committee have commissioned, and are now promoting, a report from (very conservative) Bundestag lawyers, saying that cannabis legalization will violate EU law.

It also comes as a new Ipsos poll shows that an amazing 61% of Germans surveyed believe that cannabis reform should be legal.

One thing is clear. It is not likely that the current government will shrink from its current course, no matter the political opposition.

The German Vanguard

Internationally, the move to full legalization in Germany, the world’s fourth largest economy, is going to have a knock-on effect just about everywhere – which includes countries far from Europe’s borders.

The reason is that those tasked with reform on a federal level are also grappling, both domestically, and with other countries now on the verge of the same, about how to create a carve-out for cannabis in both European and International law.

On one front this should be relatively easy as the EU has already ruled that CBD at least, is not a narcotic. This means that most of the EU is out of compliance with new EU policy on the same. It also shows a path to legalize higher THC flower.

However, with Germany, Malta and Luxembourg moving forward within the EU (plus Holland and presumably at least Portugal), this will create an international push to address much larger issues – including how to carve cannabis out of international drug control treaties.

There is no way this process is going to be fast enough for patients, recreational users or even the cannabis industry itself. But the good news is that the train has left the station, and there is no turning back.

From Gun Bans To Driving Limits: The International War On The Rights Of Medical Cannabis Users

Written by Marguerite Arnold on August 15, 2022. Posted in Policy.

In the United States, the Biden Administration is in favour of banning gun ownership for medical users. In Germany, there is an ongoing debate about driving limits. Such policies rely on outdated criteria to penalize cannabis users

The push to fully and federally legalize cannabis in places like the US and Germany right now is leading to some very unfortunate (and certainly rights-infringing) regulations.

In the US, as various cannabis bills languish in both the House and Senate, and Brittney Griner cools her heels in a Russian prison for possession of less than one gram of cannabis oil, the Biden Administration is (shamefully) defending a federal gun ownership ban for medical cannabis users. The issue is now front and centre in a legal battle launched by Florida agricultural commissioner Nikki Fried (a Democrat) to challenge the same. Fried is running as a Democratic challenger to the sitting Republican governor, Ron DeSantis.

No matter how one feels about gun control, the idea of punishing a sick person who takes a certain kind of medication (which could be any medication, beyond cannabis) is highly worrying. Not to mention represents grotesque discrimination against those with disabilities requiring medication.

In Germany, with a federal government now in the process of figuring out how to craft legislation for the full legalization of cannabis, one of the most controversial aspects of the same is setting drugged driving limits. Currently, drivers are charged with drugged driving if they are caught with even one nanogram of THC in their bloodstream – the smallest measurable amount possible. Both ADAC, the German version of AAA, and the working group of Traffic Court Day, an annual and highly influential congress that recommends new driving regulations to the government, are in support of the smallest limit possible.

That said, there is beginning to be a debate here about how problematic that is for medical users – particularly as they have a continual THC presence in their blood, even if not “high.” Beyond these heavier users of course, even a light recreational user can show traces of cannabinoids in their blood up to 60 days after their last joint. While nobody wants stoned drivers on the speed limit-free Autobahn, there needs to be some kind of compromise – not to mention some kind of technology deployment to the police – which can differentiate between recent enough use to impair driving and a THC blood level that shows constant use.

No matter where this kind of debate is taking place, however, it is clear that such questions have never been answered – and any new regulations are likely to be controversial enough to end up in court. Legislators are unlikely to be able to figure this out on their own.

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

Written by Marguerite Arnold on August 1, 2022. Posted in Policy.

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.

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Cannabis Smuggling Continues To Decline Along US/Mexico Border

Written by Frank Schuler on August 1, 2022. Posted in Policy.

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.

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Will The United States Ever Legalize Cannabis Federally?

Written by Johnny Green on July 26, 2022. Posted in Policy.

The negative impact of cannabis prohibition in the United States goes far beyond the country’s borders. Every country around the world enacts its own cannabis laws, however, prohibition in the U.S. largely drove prohibition abroad over the years.

Yet, whereas much of the world followed the United States’ lead when it came to enacting prohibition policies, countries such as Uruguay, Canada, and Malta didn’t wait around and have zoomed past the U.S. when it comes to ending cannabis prohibition for adult use.

For that matter, many states within the U.S. have already taken matters into their own hands and passed legalization measures at the state level. Every passing year seems to result in more states passing legalization either via legislative action or through the ballot box.

Lawmakers at the federal level have tried for some time, to varying degrees, to pass an adult-use legalization measure. Unfortunately, it has failed to happen, with bill after bill dying a slow death in Congress.

There is optimism that something could happen this session in Congress, with the Cannabis Administration and Opportunity Act finally being introduced in the Senate. The measure was teased for quite some time prior to being introduced and was essentially hyped as a measure that the Senate could finally support after the Senate has failed repeatedly to pass measures previously passed by the House.

I don’t personally have a lot of hope for this specific measure passing, partially because some advocates do not think that it goes far enough, and mostly because Congress is dysfunctional, and getting anything reasonable passed these days seems to be extremely difficult.
Only time will tell. No one knows for sure when cannabis will be legalized federally in the U.S., and anyone that says otherwise is likely trying to sell you something.

Below is more information about the newly introduced Senate measure via a news release from our friends at the National Cannabis Industry Association (sent to us via email on June 21st):

WASHINGTON, D.C. – Today, Senate Majority Leader Chuck Shumer (D-NY) along with Finance Committee Chair Ron Wyden (D-OR), and Sen. Cory Booker (D-NJ) introduced the Cannabis Administration and Opportunity Act (CAOA) which is now the Senate’s only pending legislation that would provide comprehensive cannabis policy reforms across the nation.

The landmark bill would remove cannabis from the federal Controlled Substances Act and move regulatory responsibility from the Drug Enforcement Administration (DEA) to the Alcohol and Tobacco Tax and Trade Bureau (TTB), the Food and Drug Administration (FDA) and other agencies to protect public health and safety. The legislation would also allow the state-regulated medical and adult-use cannabis industries already in place in 37 states to operate without federal interference.

The Senate Democrats’ CAOA would also institute a federal excise tax of 5-25% on cannabis on top of the already-hefty state taxes imposed on the industry, concerning advocates for small cannabis businesses and equity operators.

“We applaud the authors of this legislation for working to bring federal law into harmony with the states and the vast majority of voters who have called for an end to prohibition,” said Aaron Smith, co-founder and chief executive officer of the National Cannabis Industry Association. “We look forward to working with Senators on both sides of the aisle to improve the tax provisions in this bill on behalf of small cannabis businesses and eventually pass it into law.”

The long-awaited CAOA Act was introduced after a bill sponsors circulated a discussion draft last year. NCIA and other advocacy organizations provided comprehensive feedback to the bill’s authors last year. Notable changes to the legislation include:

Increases the permissible THC by dry weight from the current 0.3 percent to 0.7 percent and refines the definition of “hemp,” and consequently “cannabis” by taking into account the total THC in a cannabis product, rather than just delta-9 THC.
Changes to the weight quantity to qualify a person for felony cannabis distribution or possession charge under the section from 10 pounds to 20 pounds.
Provides that a court shall automatically, after a sentencing review, expunge each federal cannabis conviction, vacate any remaining sentence, and resentence the defendant as if this law had been in place prior to the original sentencing.
Enables a noncitizen who has received a deportation order based on a cannabis-related offense to file a motion to reconsider that decision. If the motion to reconsider is filed within 30 days of the removal order, the motion may allow for the cancellation of the deportation order.
Establishes a new 10-year intermediary lending pilot program in which SBA would make direct loans to eligible intermediaries that in turn make small business loans to startups, businesses owned by individuals adversely impacted by the War on Drugs, and socially and economically disadvantaged small businesses.
Removes the requirement to maintain a bond for any cannabis business that had less than $100,000 in excise tax liability in the prior year and reasonably expects excise tax liability in the current year to be below such amount.
Incorporates rules similar to rules currently applicable to permitted malt beverage producers and wholesalers.

Whitney Economics submitted a report outlining concerns with the tax plan, finding that the CAOA would impose an additional $1.1 billion in taxes on the already-struggling and cannabis industry.

“Introducing this far-reaching bill is a historic and important effort but we hope that the Senate moves quickly to pass the bi-partisan SAFE Banking Act which would provide tangible and immediate relief to small businesses and improve public safety by opening access to banking and financial services in our industry,” added Smith.

The SAFE Banking Act has been approved by the House of Representatives seven times and the Senate version of the bill (S. 910) enjoys the support of a bipartisan group of 43 co-sponsors but has yet to be brought to a vote in that chamber.

Laws to make cannabis legal for adults have passed in 19 states as well as the District of Columbia and the territories of CNMI and Guam, and 37 states as well as several territories have comprehensive medical cannabis laws. The substance is legal in some form in 47 states.

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The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the U.S. and the only organization broadly representing cannabis-related businesses at the national level. NCIA promotes the growth of a responsible and legitimate cannabis industry and works toward a favorable social, economic, and legal environment for that industry in the United States.

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

Written by Johnny Green on June 21, 2022. 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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Researchers Identify Two Main Motivating Factors Behind Unregulated Cannabis Purchases

Written by Johnny Green on May 27, 2022. Posted in Archives, Business, Policy.

Legal cannabis is spreading across the planet, and with it, purchasing freedoms for some consumers. Yet, the unregulated market still exists even where cannabis can be purchased legally. Researchers at the University of Waterloo in Ontario recently examined the factors that motivate a consumer or patient to purchase unregulated cannabis versus regulated cannabis in North America in an attempt to understand why the unregulated market still exists in Canada despite legalization, and to a lesser extent, the United States.

By human history standards, cannabis prohibition is a relatively new thing. After all, cannabis is not a new plant and humans have used it for medical and recreational purposes for centuries. It wasn’t until the last century that political forces prohibited it. Fortunately, three countries have now legalized cannabis for adult use – Uruguay, Canada, and Malta. Cannabis can be legally acquired in some form in Uruguay and Canada, and soon, Malta.

Out of the three countries, Canada has the most robust industry model. Cannabis consumers of legal age from anywhere around the planet can come to Canada and make a legal purchase through a storefront dispensary, through the mail, and/or through delivery services. Similar options have existed in the U.S. at the state level for many years. Researchers have kept a close eye on North America as the ‘cannabis experiment’ has continued to roll out, including researchers at the University of Waterloo in Ontario.

Motivating Factors

The average cannabis consumer is more sophisticated now than arguably any other time in human history, and that is largely due to the options available to them, particularly in Canada. Some consumers want to smoke cannabis flower, some want to vaporize it, and still, many others prefer smokeless forms of cannabis such as edibles and topicals.

Regulated industries boost the options for patients and consumers. I live in a legal jurisdiction, and the different types of cannabis products and consumption methods are exponentially greater now compared to when there was no regulated market With that being said, the unregulated market still exists where I live, albeit at a much lower level than before legalization.

Researchers at the University of Waterloo in Ontario looked at consumer data from 2019 and 2020. The data was compiled as part of the annual International Cannabis Policy Study. Survey data asked consumers about their purchasing habits over the past 12 months, and when they indicated that they purchased cannabis from an unregulated source they were provided a list of reasons to select from regarding what motivated the unregulated purchase.

“‘Legal sources had higher prices’ was the number-one answer in Canada in both years (35.9% in 2019, 34.6% in 2020) as well as in the United States (27.3% in 2019, 26.7% in 2020). Convenience (both ‘legal sources were less convenient’ and ‘legal stores were too far away/there are none where I live’) was high on the list as well, with the percentage of respondents who named these as reasons ranging from 10.6% to 19.8%.” researchers stated in their press release.

Sensible Regulations To Help Boost Legal Sales

On average, the cost of legal cannabis will always be greater than unregulated cannabis. A legal cannabis company has to pay ongoing licensing and compliance fees, rent on their commercial facilities, and a number of other operational costs that do not exist in the unregulated market. All of those added layers contribute to the overall cost of legal cannabis.

Speaking anecdotally, I am willing to pay extra for legal cannabis being that it is tested and regulated. However, there is a point to how much more I am willing to pay, and I assume many consumers are the same as me in that regard. Paying 10% more is reasonable, however, if legal cannabis costs 2-4 times as much as unregulated cannabis, clearly many people will choose to go the unregulated route.

The second motivating factor identified by the researchers, convenience, is much easier to address from a public policy standpoint. Boosting the ways in which consumers and patients can legally acquire cannabis helps a considerable amount. Conversely, the fewer ways people can legally acquire cannabis the more it creates opportunities for unregulated sources to fill the void and meet the demand. Jurisdictions that choose to cling to prohibition or hinder safe access do so at their own peril.

Lawmakers around the world need to do everything that they can to strike the right balance between regulating cannabis, generating public revenue, and implementing sensible regulations that help keep the cost of legal cannabis down as much as reasonably possible. Everyone needs to temper their expectations when it comes to getting rid of the unregulated market. Just as there will always be a market for unregulated alcohol, so too will there always be an unregulated market for cannabis, at least to some degree.