Just after New Year’s Day in 2018, the United States Department of Justice gave a “gift” to marijuana lovers. On January 4th, Justice Secretary Jeff Sessions signed a memorandum announcing the cancellation of the Obama policy on marijuana, and cracking down on cannabis activities nationwide, including planting, trafficking, transportation and smoking.
Just three days after the legalization of marijuana in California, the marijuana fans have not had enough addiction, and they received this “unfortunate” news, which is estimated to be a bit embarrassing.
In fact, the United States Department of Justice’s statement not only made American cannabis fans, but also made Canadians feel overwhelmed. Because the Canadian federal government has announced that it will fully implement the legalization of marijuana in July 2018, governments at all levels, the cannabis industry and marijuana enthusiasts are gearing up to prepare for the upcoming “marijuana carnival.” What if the United States bans marijuana at the federal level and the huge United States cannabis production chain is transferred to Canada to ask for a share?
Over the years, the United States and Canada have closed their eyes on cannabis, providing a booming opportunity for the cannabis industry. According to ArcView’s survey, the illegal cannabis market accounted for 90% of the total sales of cannabis in the United States and Canada in 2015. The proportion in 2016 has decreased, but it is still as high as 87%, with a total value of about US$46 billion, far exceeding the legal market. Given the booming demand for cannabis, eight states and the District of Columbia have allowed cannabis to be legalized. Many United States financial institutions and companies have injected heavily into the cannabis industry, and the original black market traders are also preparing to move from underground to the ground.
The latest statement from the United States Department of Justice will undoubtedly seriously disrupt the development of the cannabis industry. What about the existing cannabis industry chain? What should I do with the upfront funds already invested? These are all problems that cause related practitioners to have headaches. In the case of a dilemma, one of the best ways to go is to go to Canada, where legal marijuana will be legalized. Analysts believe that the Trump administration’s tightening of the cannabis policy will curb the development of American cannabis companies and force them to enter Canada, which is only “one door apart.”
Originally, Canadians, including Chinese, were worried about the legalization of marijuana. In the past year or so, the Chinese community has tried every means to push the federal government to abolish the legalization of marijuana, at least to delay the legalization of marijuana. Now, the prospect of eliminating the legalization of marijuana has become increasingly rampant, and if American cannabis producers swarm in, they will surely create new stimuli for cannabis use, which Canadian Chinese who have always paid attention to their children’s education do not want to see.
In addition to the general public, the Canadian cannabis industry and the oil and gas industry are also skeptical about the entry of United States cannabis producers. Generally speaking, American companies are rich in financial resources. Influx into the Canadian market will inevitably impact local marijuana enterprises, and even make the latter a vassal of US capital. The working environment of the oil and gas industry has certain risks, requiring employees to stay awake at all times, if marijuana in the future Flooding will inevitably increase the company’s monitoring and medical costs for employees.
Of course, it remains to be seen where the US cannabis producers are going. Since the Attorney General’s stated attitude, several states in the United States, particularly the legalization of marijuana, have responded strongly, arguing that the federal government has no right to intervene in state cannabis activities. Officials in Washington and Seattle even vowed to defend their marijuana laws and not participate in law enforcement actions against legitimate marijuana transactions. Whether the “forbidden ban” of the federal judiciary can be more thoroughly implemented is still unknown.