In Canada at the beginning of 2018, marijuana - often referred to as marijuana or marijuana - is legal only for medicinal purposes and only under the conditions outlined in Access to Ganja for Medical Destination Rules (ACMPR). issued by Health Canada. Cannabis cultivation is currently legal in Canada for seeds, grains and fiber production only under a license issued by Health Canada.
Cannabis was first banned in Canada in 1923, with medical marijuana being legalized in 2001. Responding to popular opinion, Justin Trudeau, leader of Canada's Liberal Party committed to legalizing cannabis for personal use while campaigning during Canada's federal election 2015. The Liberals won the election by 184 seats, allowing the party to form a majority government with Trudeau as Prime Minister. The plan is to eliminate possession of marijuana for personal consumption of the Drug and Controlled Drug Act; however, new laws will apply for greater penalties for those convicted of providing marijuana for minors and damages while driving a motor vehicle.
The law to legalize cannabis for recreational use (Cannabis Act, Bill C-45) was adopted by the House of Commons of Canada at the end of November 2017; it passes a second reading in the Canadian Senate on March 22, 2018. The final election by the agency is scheduled for June 7, 2018. The bill will be effective in the summer of 2018, if approved in due course by the Senate, unless the House proposes amendments and returns Bill to the House of Commons.
Provinces will have the power to determine distribution and sales methods and each will also establish a legal age for marijuana use. Excise tax will be collected, to be shared with provinces and regions. After the law, the annual sales forecast will be $ 4 billion (US $ 3.2b), according to the federal government.
Video Cannabis in Canada
History
Cannabis has been illegal ever since it was added to the Secret List of the State in 1923 under the Drug Abuse Act on Drug Laws after a vague reference to "new drugs" during a night session at the House of Commons on April 23, 1923. According to one government official, marijuana was banned after the Director of the Federal Division of Narcotics Control returned from a meeting of the League of Nations where international control of cannabis was disseminated. Cannabis did not start attracting formal attention in Canada until the 1930s, and even then it was minimal; the first seizure of cannabis by the Canadian police was not until 1937. The commercial planting of industrial marijuana was banned in 1938. Between 1946 and 1961, marijuana accounted for only 2% of all drug trafficking in Canada.
In the 1960s marijuana began to increase rapidly in Canada. For the entire period 1930-1946, the RCMP recorded only 25 cannabis captures, but this increased to 2,300 cases in 1968, and to 12,000 cases in 1972. In response to the increasing popularization of marijuana and increased criminal charges against middle-class citizens, the government established the Royal Commission of Inquiry in the Use of Non-Medical Medicines, commonly referred to as the Le Dain Commission in 1969 to investigate the use of non-medical marijuana in Canada. The 1972 report of the commission recommended the abolition of criminal penalties for the possession of marijuana, though not legalized, per se. While the next two federal governments discussed the recommendation, no steps were actually taken to amend the law.
On September 15, 2017, Canada's first license for the distribution of recreational kanabis was awarded to Organigram Holdings (known as OGI: CVE) by the province of New Brunswick. This marks a milestone for marijuana distribution in Canada.
Maps Cannabis in Canada
Steps to legalization
After he was elected Prime Minister by 2015, the first important step taken by Justin Trudeau was the creation of a provincial-federal territorial task force to discuss a mutually appropriate process for the legalization of marijuana possession for ordinary use. This Task Force on Legalization and Regulation of Ganja releases a 106-page report to the public on December 13, 2016, with recommendations. They are provided for consideration by the federal and provincial governments but they are not binding. Sales for recreational use will not begin until July 1, 2018 at the earliest, by law (Bill C-45) passed by the federal government at the end of November 2017. It assumes that the Senate will pass the bill before the end of June 2018 which is certainly not guaranteed.
Subsequently, the substance will remain under control: it is sold only at authorized government retailers, and only grows by licensed producers. During the federal election campaign, the Liberals have promised "stronger new laws" against selling to minors, driving while experiencing disruptions and selling through channels that are not specifically allowed to do so.
Until the law is enacted, marijuana remains illegal (except by prescription, for medical purposes), because Trudeau reminds police forces across the country by the end of 2016. He insists that they "enforce the law": criminals charge illegal shop pharmacies. Trudeau also explained that the intent of this law is not to encourage the use of marijuana recreation. The aim is "to better protect our children from the easy access they have now to marijuana [and] to remove criminal elements that take advantage of marijuana," he told the Toronto Star on December 2, 2016.
The police forces took Prime Minister seriously and in March 2017 invaded five locations of Cannabis Cultural retailers in Toronto, one in Vancouver, BC and one in Hamilton, Ontario. They are also looking for homes in Toronto, Stoney Creek and Vancouver. Many charges were filed against Marc Emery and Jodie Emery, the owner of Cannabis Culture, a company that opened small drugstore stalls. The couple was convicted in December 2017 on drug-related charges, including possession of marijuana for trade purposes, fined and placed in two years probation. Drug-related allegations were filed against three others who were later convicted.
Toronto police have told the media that unlicensed marijuana pharmacies are linked to "high-level drug traffickers... often associated with organized crime, given the number of marijuana sold".
The heads of the first countries who attended the First Nation Assembly widely agreed that the distribution of marijuana on reserve lands should be regulated by the First Nation government, and not the provincial law.
On June 1, 2018, the Canadian Senate passed an amendment to a bill banning cannabis "spanning the brand." The amendment, which passed 34-28, prohibited the sale and display of marijuana related items and made it difficult to publicly promote marijuana after it was passed. However, this amendment also allows cannabis production companies to continue to advertise and promote products unrelated to cannabis.
Rules by province
In Canada, regulations vary from province to province. See Canadian Cannabis law by province or territory
Public opinion
Since 1997, public opinion polls have found that a majority of Canadians agree with the statement, "Cigarette smoking should not be a crime". The June 2016 national poll conducted by Nanos Research shows that 7 out of 10 Canadians support legalization.
In 2006, a high percentage of the population used cannabis, regardless of the risk of police levies on ownership, and primarily to sell it without the necessary licenses, according to statistics collected by the Center for Addiction and Mental Health. Nearly half (44%) of Canadians admitted trying at least once; no statistics are provided for the percentages that often use them. The CAMH report also shows that in the final year of High School, nearly half (46%) of Ontario students claimed to have used marijuana in the past year. Naturally, CAMH discussions include warnings about the negative effects of cannabis. Other groups also warned about risks, including the Canadian Automotive Association which polled in 2016 showed that "Nearly two thirds of Canadians fear that roads will become more dangerous [due to drug interference] with legalization of marijuana".
A national poll in October 2016 by the Forum showed that about five million Canadian adults now use cannabis at least once a month; is expected to increase 19 percent after marijuana is legalized. Canaccord Genuity analyst Matt Bottomley and Neil Maruoka released a research note with a more moderate estimate of the number of users. They estimate that around 3.8 million people will become recreational users (perhaps on a frequent basis) by 2021. The report by the Canadian Parliamentarian Budget Agency (PBO) is more bullish, estimating that by 2021 some 5.2 million adults may be users.
Cannabis as a commodity
Farmers who currently produce cannabis are licensed by Health Canada under Access to Cannabis for Medical Purposes Regulation (ACMPR). By the end of 2016, there are 36 official producers nationwide on the Health Canada list. Sales are only allowed through mail orders, but by the end of 2017 some major retailers have proposed changes in rules to enable them to sell products as well. On December 21, 2017, 82 licenses have been issued under Access to Cannabis for Medical Purposes Regulations (ACMPR), but not all manufacturers have been licensed to start selling medical marijuana. Most of these companies are located in Ontario. At that time, no licenses were issued to produce recreational marijuana; licensed manufacturers hope to be added to the list once it is created. Between 1 February 2018 and early April, approximately 89 additional applicants were approved as cannabis farmers by Health Canada; at the time the agency was considering the benefits of 244 other apps.
Statistics show that as of September 2016 nearly 100,000 Canadians have purchased legal medical marijuana, a significant increase of 30,537 in September 2015, possibly because it became the main drug and because supplies became more readily available. According to StatsCan estimates, Canada may have spent approximately CAD $ 6.2 billion (US $ 4.8 billion) on marijuana by 2015, although the agency recognizes that there is no scientific method to measure illegal consumption accurately.
The largest of licensed manufacturers is Canopy Growth Corporation of Smiths Falls, Ontario, renamed from Tweed Marijuana Inc. in September 2015 after buying a Bedrocan competitor. The subsequent acquisitions for the company include Vert Medical, the German marijuana MedCann distributor and majority interest in Quebec Groupe HEMPCA Inc. In early December 2016, Canopy announced a gracious takeover bid from another Canadian manufacturer, Mettrum Health (CVE: MT), in anticipation of a growing market after marijuana was legalized for recreational purposes in 2017. In addition to domestic sales, Canopy Growth started selling medical marijuana products in Germany and Brazil in 2016. The company is described as "one of the worlds - and Canada's first major Canadian exporter - by the Financial Post news organization.
Canopy Growth patient chassis increased by about 260 percent and revenues increased by about 180 percent in 2016 vs. calendar year. 2015. The increase will be even greater but the company has difficulty maintaining sufficient supplies in some high demand categories such as mid-to high thc products and oil levels. A report by The Financial Post suggests that a shortage of inventory has been a problem for many Canadian licensed medical marijuana manufacturers; this can get worse after recreational recreational marijuana. When the year-end report was released, Canopy Growth's stock price fell seven percent to $ 12.09 on the Toronto Stock Exchange (ticker WEED). The final report of December 2016 shows profit for the first time in the company's history (3 million in net profit). Previously, Canopy Growth has been operating in losses ($ 3.3 million in 2015, for example) in part because it uses funds to gain competitors in preparation for demand for marijuana that is significantly increased by the recreational use market expected to begin in early 2018. (The acquisition company most recently announced is Metric Health Corp., for $ 430 million, awaiting final regulatory approval.) In early December 2016, a Reuter survey of four market analysts has indicated Buy's consensus rating in early December 2016.
In 2018, Aurora Cannabis buys competitor CanniMed before anticipating growth in the market and announces plans to acquire MedReleaf. If the second deal is approved, the new company's value could reach $ 7 billion, making it bigger than Canopy Growth Corporation with a market capitalization of $ 6.45 billion. It will have distribution agreements in a number of countries, including Germany, Italy, Brazil and Australia.
Reports by the Task Force on Cannabis Legislation and Regulations have recommended that cannabis farmers should be licensed at the federal level, separate from medical marijuana producers. The expert panel also recommended that the process ensure competition by licensing large and small producers. While permissions must be federal, each province should be allowed to determine how and where the product will be sold.
After the possibility of the date of legalization (summer 2018) to be well publicized, industry analysts report that some manufacturers that have been licensed for medical marijuana, including Aurora Cannabis, have already increased their operating capacity for future sales to distributors of marijuana recreation. Nevertheless, the report in June 2017 voiced concern that companies licensed for medical marijuana would not be able to meet the very high demand of 655,000 kilograms per year when recreational use of the product becomes legal.
A report in late November by Ernst & amp; Young suggested that there would be a merger, leaving fewer players in the industry. "Many believe that consolidation is inevitable, leaving some great players post-legalization." Also by the end of 2017, Deloitte estimates that the recreational marijuana market will be worth nearly $ 23 billion.
The federal law will also allow housekeeping to grow up to four marijuana plants but in November 2017, Quebec announced that they would not allow this option.
Stock market volatility
Sometimes in 2016, and by 2017, the price of some manufacturers' stocks increases significantly as retail investors become more bullish on this market segment but then decline in the future. Between September and mid-November 2017, the value of ordinary hemp stocks rose by 54%, according to Vahan Ajamian of Beacon Securities Ltd. Canopy Growth's share price, for example, rose more than double the price during the fall of this year, but declined in mid-November while others, such as Aurora Cannabis, increased at the same time during other volatile periods. At that time, analysts could not predict long-term results for any company. A report by Investopedia on Nov. 15 said that most cannabis stocks "can be labeled as penny stocks, so any investment can bring a significantly higher risk component." One of Canada's few cannabis stocks to trade on the main exchange (NASDAQ) and not as A penny stock, is a visitor of Neptune Wellness Solutions, Neptune turns the krill oil extraction factory to focus on the CBD oil.
Market analyst Matt Bottomley and Neil Maruoka from Canaccord Genuity believe that about 3.8 million people will become recreational users (perhaps on a frequent basis) by 2021 with a potential sale of $ 6 billion. These analysts estimate that after legalization, there may be "shortage of supply in the near future" (up to about 2020 possible) which is likely to increase the selling price of the product. Their predictions are based on strict government standards that have resulted in some manufacturers becoming licensed under the current system. Presumably the government will loosen the qualifying standards to increase the number of producers to be licensed after cannabis is legalized for recreational use but no such plans have been disclosed to date.
Some industry watchers have warned that "investor speculation and insanity sparked many gains". Other observers point out that marijuana corporate values ​​are high but show that "the players have real products with real sales growing, unlike many dot-com companies that feed the bubbles." Nonetheless, "marijuana investors who are chasing the Big Green Rush play a dangerous game," according to Dan Nicholls, Vice President of Marijuana Index in Los Angeles. "For the first time investors, stocks are always at risk," he said. "You can lose everything you enter, potentially, especially in a market like this." Some market analysts voiced concern about the long-term retail price of recreational marijuana; they estimate that it will decline over time after legalization due to competition and mass sales to the provincial government. According to CEO of Cronos Group, "It will not be 80 or 90 percent margin forever.There will be very fast price compression" after the initial product shortage is resolved.
The possibility of a fall in prices as the cost of producers decreases as the economic scale is confirmed by the head of the federal-provincial task force by the end of 2017. The government also intends to keep the net cost to consumers low enough to virtually eliminate the need for illegal markets but "not too low to create incentives for improvement use".
Certain investment advisors also warn clients that the stock of marijuana is very risky. According to Barry Schwartz, head of investment at Baskin Wealth Management in Toronto, "This is not the type of investment we've ever made" adding that he would advise anyone who asks about investing in this sector, "do not do it". Despite the significant increase in stock prices of some cannabis producers in early November 2017, some institutional investors bought the shares because of the uncertainty that will succeed and which will fail.
In November 2017, business columnist David Olive of Toronto Star strongly advised against investment in the industry. The reasons include these aspects: too many producers for the small Canadian market ("nearly 100 players"), the retail price will drop significantly, reduce the margin, and the cost ratio is too high, so most companies will not be profitable. "Only the most risk-tolerant and speculative investor should approach the place," he warned.
Legal promises pushed stock prices in companies like Aurora Cannabis Inc. (ACB.TO), Canopy Growth Corp (WEED.TO 2.00%), Aphria Inc. (APH.TO) and MedReleaf Corp. (LEAF. KE) in November and December 2017. A market analyst explains that trust is based on the fact that legal marijuana will not be more expensive, including taxes, than black market products; this should ensure a sizeable market for manufacturers. Ads may be used to increase sales. The federal task force has recommended that ad content restrictions should be similar to tobacco ads, very strict. However, the marijuana lobby group manufacturers propose softer restrictions that apply to alcohol producers: not to lure the youth and only promote the brand, rather than the use of recreational products.
As the stock market neared its end of year closure in 2017, main cannabis stock prices soared but Bloomberg News reported that "some analysts are skeptical about the projected demand, and betting on stocks is difficult" as there is "hardly any stock left to short, and some investors has taken a short position in the market has lost money ", quoting Ihor Dusaniwsky of S3 Partners (investment analyst) in New York. The BCMI Cannabis report warned that the explosion could "end badly", with bubbles exploding when other industrial "mania" exploded in the past. On January 4, 2018, a fall in prices was reported by Bloomberg.
Excise tax and sales tax
From the initial planning stage, the government indicated that the substance would be taxed. Estimates by the end of 2016 suggest revenues of $ 618 million annually from federal taxes initially, and eventually, billions, according to a report by the Canadian Parliament Budget Officer (PBO). (Recent government estimates indicate that the illegal marijuana industry is worth $ 7 billion per year.) The Task Force report recommends that high-grade marijuana (with high THC content) be taxed at a higher rate than conventional products to make it less attractive consumer.
The federal government has announced in October 2017 that its budget will include $ 546 million over five years to prepare "a legal framework to strictly regulate and restrict access to marijuana" and another $ 150 million over six years to impose restrictions on driving drugs. Canada Health and Royal Canadian Mounted Police will receive a share of the fund. Of this amount, municipal police agencies and indigenous peoples must receive $ 81 million to offset increased training and resource costs.
On November 10, 2017, the government announced that federal excise taxes, to be distributed 50/50 with provinces and territories, should not exceed $ 1 per gram or 10 per cent of producer prices, whichever is higher. The government press release does not mention higher taxes on products with high potential. In December 2017, following a request from the province for a higher percentage, a two-year agreement was signed to provide 75% of the total tax; also, the maximum to be taken by the federal government will be $ 100 million per year, with every surplus paid to the province and region. The final retail price of the product will include the provincial sales tax, ranging from 5% to 15% depending on the province. This arrangement will be discussed again in December 2018 to determine whether five months of experience indicates that the 75/25 tax breaks scheme has proved appropriate.
In provinces where householders are allowed to grow their own crops, no taxes are imposed on the marijuana.
Retail distribution
After the federal government announced that marijuana would be legalized, Ontario Premier Kathleen Wynne commented that the liquor store of the Ontario Council (LCBO) may be the ideal distribution network to store, control and sell the product. The union representing LCBO staff has also been lobbying for this process. However, the Task Force specifically recommends not to sell cannabis along with alcohol.
Having known that federal law would give provinces the power to determine the method of distribution and sale, Ontario announced its plans for retail marijuana recreation. The Liqueurs Control Board of Ontario will be the sole seller but not through the 651 stores that sell alcoholic beverages. In contrast, a subsidiary, Ontario Cannabis Retail Corporation (OCRC), will initially open 40 stores by 2018; in July 2019, there should be 80 such outlets. The product will also be marketed through online sales.
In mid-November 2017, New Brunswick plans to take a similar approach, as did Quebec. The latter has announced that the liquor store SociÃÆ'Â © tÃÆ'Â © des alcools du QuÃÆ' Â © bec (SAQ) will become the sole recreational marijuana retailer in the province. Initially 20 retail outlets will be opened and products sold on-line will be delivered to customers made by Canada Post.
Manitoba will also handle on-line sales using public systems but will allow retail stores to be operated by the private sector while Alberta is considering the possibility of allowing on-line sales by the private sector. The Manitoba plan is specific enough, with the Liquor and Gaming Authority (LGA) to manage all aspects of the product and Manitoba Liquor and Lotteries Corporation (MBLL) to buy and track marijuana for sale. British Columbia, however, is considering a more flexible outlet system that will differ from one community to another, including "government liquor stores, private liquor stores or other variations of retail operations". None of the provinces will allow marijuana to be sold at outlets that also sell alcoholic beverages.
References
Further reading
- Nolin, Pierre Claude; Kenny, Colin (2003), CannabisÃ,: report of the Senate Special Committee on Illegal Drugs , University of Toronto Press, ISBN 0-8020-8946-1
- Kyle Grayson (April 12, 2008). Chasing a dragon: security, identity, and illegal drugs in Canada . University of Toronto Press. ISBN 978-0-8020-9479-7.
See also
- Canadian cannabis law by province or region
- Drug liberalization/Drug ban
- Minors and cannabis legality
- Canadian cannabis legal history
- Cannabis legality by country
- Cannabis legality
- The effects of cannabis
- Designer Drug
- Cannabis Party (Canada)
- Medical marijuana
External links
- The Canadian Senate Special Committee 2002 on Dark Drugs
- The Decriminalization Bill Fails
- Report of the Canadian Government Commission of Inquiry into the Use of Non-Medical Drugs - 1972 - LeDain Commission Report
- Official Licensed Producers under Cannabis for Medical Destination Rules
- Cannabis Education Research Center
Source of the article : Wikipedia
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