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Weed supply low following post-legalization in Canada

Canada is quickly becoming one of the top underrated places to travel. After the recent legalization of marijuana, there is a whole new industry that has cropped up related to weed. Everything from herbal remedies to baked goods have emerged as secondary markets in the region. There is even a prolific market for weed based dog treats to cure pet-anxiety. The traditional dispensary is quickly evolving to keep up with market demand.

Vancouver is an interesting example of this scenario. There are currently more illegal dispensaries than there are Starbucks outlets in the city. You can buy a coconut-chocolate-weed infusion just as easily as you would a ChocoMocca latte here.

The government is trying its best to curb the black market in the space, which is estimated to be close to 5 Billion CAD. That market is a large one to disrupt, leading many to believe that supply needs to outgrow demand for the product.

Canada’s doing all it can to curb the market, empowering hundreds of unarmed inspectors to shut down dispensaries on the spot. This can rapidly change the black market and make it redundant in the future.

The real problem is the lack of quality supply to keep up with rising demand. That’s why customers opt for tax-free (and often cheaper) black market alternatives. With increased regulation, the black market may possibly shrink over time.

Toronto saw 5 illegal dispensaries being shut down a few days after the law went into effect. Many other cities are following suit. The flip-side of the picture is the irregularity with which licenses are being provided. For growers who were generating income illegally, there are few ways of applying for a legal license.

This opens up the market for outside growers to enter Canada and create a legal brand in the growing economy. The problem for the residents lies in the habit of calling up your local dealer. It’s simpler than having to visit a dispensary and not knowing whether it is legal or not. Since you already have a relationship established with the dealer, you won’t want to experiment outside of that network.

What are the dispensaries doing about it? Not much as it turns out.  Only $180,000 of the $3 Million worth of fines issued was paid so far. Dispensaries are waiting for consumer trends to evolve and for government to relax these rules. Legislation was only the first step. Now comes a host of new challenges which involve increased investment in inspections.

Finally, the licensing fees can range anywhere between $500 to $30,000 depending on the state and the type of operation you’re running. This is also indicative of how each state wants to manage the industry from within. That’s another impediment for black market dealers to turn towards the legal route.

With decreased red tape, increased accessibility and assistance, the industry can grow many times over. With Canada running out of legal marijuana this year, next year seems brighter than before. In conclusion, there is a market out there ready to expand but it needs legal clarification and assistance across the board.

Contract between Saudi Arabia and Canada ‘frustrating’

With the revelation of the killing of Washington Post journalist, Jamal Khashoggi, in Saudi Arabia’s consulate, Turkey, there is increasing pressure for Canada to cancel its contract for sale of light armoured vehicles (LAVs) to the kingdom of Saudi Arabia.

Canada’s Prime Minister Justin Trudeau said that while Canada has condemned the killing of the journalist and is not afraid to freeze permits on arms exports, the contracts that bind them to supply LAVs to Saudi Arabia are very difficult to break.

Speaking to Matt Galloway on CBC Radio’s Metro Morning on Tuesday, Trudeau explained that the way the previous Conservative government negotiated the contract made it very frustratingly difficult to suspend and prevented disclosure of conditions.

“The contract signed by the previous government, by Stephen Harper, makes it very difficult to suspend or leave that contract,” Trudeau said. “We are looking at a number of things, but it is a difficult contract.

“I actually can’t go into it, because part of the deal on this contract is not talking about this contract, and it’s one of the binds that we are left in because of the way that the contract was negotiated.”

Germany  has already stopping its arms sales in light of the incident and other countries, and  are working to figure out what kind of diplomatic and economic pressure could be applied to Saudi Arabia to make it clear that the apparent murder of the once Saudi royal family insider within the walls of the Saudi embassy in Turkey is unacceptable.

The world has of course noticed that Canada, which has had a very serious rift with the kingdom, beginning earlier this year, when the government publicly criticized the arrests of women’s rights activities, is still sanctioning the military deal.

While Trudeau said the government was not afraid to suspend military export permits like they had in the past, he explained that this contract could have more of a back lash on Canada and they were doing their due diligence with looking into the matter.

“I do not want to leave Canadians holding a billion dollar bill because we’re trying to move forward on doing the right thing. So we are navigating this very carefully and that’s pretty much all I can say on that.” said Trudeau.

Foreign Minister Chrystia Freeland has made it very clear that Canada condemns the killing of the journalist and that the Saudis’ “explanations” of the killing of Khashoggi “lack consistency and credibility.”

She has also agreed with the federal government’s call for a thorough investigation in collaboration with Turkish officials, demanding a full and transparent investigation.

“We are gravely concerned by the murder of Jamal Khashoggi,” she said. “We do not find the explanations that have been offered to date to be credible or consistent. That is a serious problem for Canada.” She said.

However, while the Opposition is calling for government to invoke the new Magnitsky law  which gives the government the authority to freeze Canadian assets of foreign individuals who have violated human rights, to sanction those responsible for Khashoggi’s death, there is as yet no concrete word on whether that is the course Canada will take.

 

Legal cannabis in Canada has wild reactions

On Wednesday, Canada did what it said it would and became the largest country with a legal national marijuana marketplace, joining Uruguay to become the second country in the world to nationally legalise cannabis.

To the surprise of no one, sales began early Wednesday in Newfoundland with hundreds of customers lined up around the block at St. John’s by the time the clock struck midnight.

The atmosphere could only be described as ‘festive’  with some of the customers too excited to wait until they returned home, lighting up on the sidewalk and motorists honking their horns in support and they drove by the happy crowd.

Ian Power will go down in history as one of the first in line in the private store on Water Street to buy the newly legal national marijuana in Canada however, he told reporters that he has no plans on smoking it, instead he will frame it and hang it on his wall to be saved forever.

“Prohibition has ended right now. We just made history,” said the 46-year-old Power, who bought a gram. “I can’t believe we did it. All the years of activism paid off. Cannabis is legal in Canada and everyone should come to Canada and enjoy our cannabis.”

There was even more good news for cannabis aficionados, as hours before any retail outlets were opened, it was revealed that Canada would be pardoning all those with convictions for possessing small amounts of the drug up to 30 grams.

News of Canada’s firm decision to begin a national experiment that will alter their cultural, economic and social fabric in was met with calls for other countries to follow suit, expression of envy over Twitter and some backlash from other countries who are not willing to decriminalize the drug.

“Canada shows the way. When will the UK end the catastrophic prohibition of cannabis?” tweeted British MP Norman Lamb.

“Now that our neighbor to the north is opening its legal cannabis market, the longer we delay, the longer we miss out on potentially significant economic opportunities for Oregon and other states across the country,” said  Democratic Sen. Ron Wyden of Oregon in a statement, urging the U.S Government to follow Canada’s lead.

However just as there were thousands of excited tweets coming in, there were those who expressed their distaste with the legislation.

One such instance came from the citizen group the Arizonans for Responsible Drug Policy, which said Canada had declared a winner in the war on drugs, tweeting,  “Congratulations Drugs. Better luck next time public health and saftey [sic]”.

The U.S has set up its own wall against the legalisaiton of the plant based drug by revealing that those who use marijuana legally in Canada could be banned from entering the country for smoking a single joint.

On the eve of Canada’s big day, U.S. Customs and Border Protection executive assistant commissioner Todd Owen told journalists, “Admission of illegal drug use are grounds to be found inadmissible into the United States.”

“It’s now legal in Canada, so a lot of it comes down to … whether the officer believes they may engage in the same activity while in the United States,” he said. “If somebody admits to smoking marijuana frequently in Canada, then that will play into the officer’s admissibility decision on whether they think on this specific trip they are also likely to engage in smoking marijuana in the United States as well.”

There are still many things that have to be resolved around the national legalization of the drug, including health and public safety as well as the threat of addiction and the effects it will all have on young people, including social pressure similar to what many already experienced with alcohol use.

 

Cannabis to be legalised nationally in Canada

Canada is poised to become the largest country to legalise cannabis in the world and the second after Uruguay to have a legal national marijuana market place.

After years of planning and research, Uruguay launched their legal sales last year, however for Canada; October 17 becomes a very historic day for marijuana producers within the country.

This social shift promised by Canadian Prime Minister Justin Trudeau is one that Hannah Hetzer, who tracks international marijuana policy for the New York-based Drug Policy Alliance called ‘extremely significant’, especially as there are at least 25 other countries who have already legalized the medical use of marijuana or have decriminalized possession of small amounts of the drug, while a few others, including Mexico have expressed interest in regulating recreational use.

dried kush cannabis on a table

“It’s going to change the global debate on drug policy,” she said. “There’s no other country immediately considering legalizing the non-medical use of cannabis, but I think Canada will provide almost the permission for other countries to move forward.”

Last year, Trudeau’s government introduced legalization to allow recreational use of marijuana after a poll by Forum Research Inc., found that 53% of Canadians agreed that they would like the plant to be legalized.

There is of course a long list of federal, provincial and municipal regulations that dictate to stores selling now legal marijuana. These include the requirement of frosted windows and product vaults; sales staffs are not allowed to promote products as having medical benefits or inducing certain feelings. Small jars of cannabis will be permitted for customers to sniff, but then the contents must be properly disposed of, to discourage anyone willing to dig the samples out of the trash and smoke them.

For many who are afraid that legalization will mean easier access to the plant by their youths, Canada has placed strict regulations on packaging to avoid appealing to the youth and there is a ban on various marijuana advertising, especially any that could be viewed by the youth or includes depictions of celebrities. Also some of the licensed producers are in fact huge companies and the Canadian federal government will be regulating the producers which so far have 120 licensed growers.

Canadian law sets a 30 gram limit on how much a person can buy at once or possess in public, however, there is no limit on how much Canadians can possess in the privacy of their own homes. Additionally, the law allows for residents to grow up to four plants at home, however, Quebec and Manitoba are the only two provinces that have opted to forbid home-growing.

This cautious yet bold move in their approach to legalization may ultimately set the course for the rest of the world, who will be observing how this process changes the landscape of the Canadian economy.

“Canada is leading the world on this paradigmatic change, taking this plant away from the bad hombres and putting it in the hands of the good men, the authorities, the regulators.” says former Mexican President Vicente Fox, who sits on the board of Vancouver-based cannabis company Khiron Life Sciences Corp.