The recent U.S. Presidential election has given Canadian cannabis growers a big Trump card.
Licensed producers of marijuana in the great white north are poised to dominate the global cultivation industry due to the victory of a Republican candidate.
President-elect Trump has said that he is 100% in favor of medical marijuana and allowing states to decide on marijuana individually. However, the likelihood of Republicans removing pot as a Schedule 1 substance anytime in the near future is low.
That federal apprehension means marijuana producers in the United States are subject to incredibly muddy waters when it comes to doing business. The legal swamp includes not being eligible for federal corporate tax breaks and not being permitted to export products across state lines, among other key issues.
Meanwhile, in Canada, LP’s are preparing for the announcement of a fully legalized and federally sponsored recreational marijuana program. Prime Minister Trudeau has stated that official legislation will debut around Spring 2017. This will allow Canadian marijuana corporations to grow exponentially, as they freely produce, sell, and ship legal weed from one end of the country to another.
A recent article in the Financial Post stated that the Canadian MMJ system is the most sophisticated in the world. This is due to many factors including the fact that Canada was the first country in the world to legalize medical marijuana federally in 2001, so it has had time to develop and foster growth in regards to producers.
This has given companies like Canopy Growth Corporation the chance to be involved in medical marijuana programs around the world, as they too emerge from the bowels of prohibition.
While the Canadian companies grow, they will also be able to hover over the U.S. market and capitalize on lucrative opportunities. This could eventually include the export of marijuana into the U.S. and possible expansion into the country itself.
Marijuana.com caught up with Bruce Linton, the CEO, and Chairman of Canopy Growth, at the Marijuana Business Conference & Expo in Las Vegas this week.
“There is no federal allowance [in the US]and Trump has been pretty clear that he is not in favor of recreational access, full stop,” he said when referring to the benefits of producing cannabis in Canada.
“He may look at medical, but he doesn’t feel any importance or urgency to do so,” added Linton.
Linton added that the freedom LP’s have, with a federal system that approves of their actions, allows them to conduct clinical trials for cannabinoid-based medicines. Canopy can then apply for patents and copyrights on a federal level in Canada for any newfound medical discoveries.
“We can do that because we have sufficient platform strength [due to]the scope of our business. [Also] if we do it we have the capacity to intellectually protect it, because in Canada it’s deemed to be a lawful activity.”
The President-Elect has yet to completely put his cards on the table when it comes to federal marijuana reform, but the hope from the cannabis community is that progress will continue.
If there is one thing Donald J. Trump has shown us, it’s that he’s almost impossible to predict.
Cover Image Courtesy of Burrard Street Journal