Cannabis legalization is spreading its roots globally. Uruguay was the first country to fully legalize recreational marijuana in 2013. Canada became the second country to legalize marijuana in 2018. Many other countries have followed suit. However, the legality of medical and recreational marijuana varies for different countries. The US still hasn’t made a decision about […]
Cannabis legalization is spreading its roots globally. Uruguay was the first country to fully legalize recreational marijuana in 2013.
Canada became the second country to legalize marijuana in 2018. Many other countries have followed suit. However, the legality of medical and recreational marijuana varies for different countries. The US still hasn’t made a decision about legalization.
Last year, Thailand became the first southeast nation to legalize and is ready to advance its medical marijuana market. According to a Forbes article this week, Thailand removed low-level cannabis and hemp extracts from its list of banned narcotic substances.
As part of the new development plan, Thailand will allow CBD extracts
with less than 0.2% THC. Thailand plans to include CBD extracts to make
medicine, cosmetics, and food. The country plans to grow its
agricultural income through hemp.
Thailand’s medical cannabis market is gaining popularity. On Tuesday, Reuters
reported that Southeast Asia’s venture capital firm Expara plans to
raise $30 million by December to invest in cannabis-related technology.
Canada
legalized cannabis in 2018. Now, the country is set for “Cannabis 2.0”
next month, which is the legalization of cannabis-infused edibles for
recreational use. Stay with us to learn more.
Canada leads the
cannabis industry. The country introduced the four major marijuana
players that dominate the industry. Canopy Growth (CGC) (WEED) is the largest marijuana company. Constellation Brands (STZ)
invested in the company. Canopy Growth generated a 94% increase in
recreational dried cannabis sales in the first quarter of 2020. The
company also saw a 209% YoY increase in international medical cannabis
revenues. Canopy Growth plans to launch new products after Cannabis 2.0
with Martha Stewart. The stock has gained 12% in September.
Aurora Cannabis (ACB)
has a strong international presence. The company generated strong
revenue growth in the third quarter. Canadian consumer and medical sales
rose 37% and 8%, while international sales rose 40%. The company expects to generate
net revenues of 100 million Canadian dollars and 107 million Canadian
dollars. The company is scheduled to report its fourth-quarter results
on September 12. Aurora Cannabis has risen 6.5% in September.
Aphria (APHA), a new entry in the marijuana market, focuses more on medical cannabis. The company did well in the recent quarter.
Aphria’s revenues for adult-use marijuana rose 158% YoY. The company
also reported a positive EBITDA of 0.209 million Canadian dollars. The
stock has risen 9.4% in September.
With Canada hitting the second
wave of legalization, the companies are expanding their edible business.
The FDA still challenges the use of CBD-based products in the US. The
FDA could hinder some of the companies if they plan to launch their
products in the US.
While
Mexico decriminalized the possession of a small amount of marijuana in
2009, it hasn’t fully legalized marijuana. However, the country
legalized medicinal marijuana with a THC content of less than 1% in
2017. Mexico could benefit from New Mexico’s medical marijuana program,
which focuses on out-of-state patients. Last week, the Boston Globe reported that a new ruling passed in New Mexico allows out-of-state patients to access the program.
Previously, I discussed that Texas has strict marijuana laws. Recreational marijuana is illegal. However, Texas legalized medical marijuana in 2015.
The
THC content allowed in medical marijuana is pretty low in Texas. The
state only allows less than 0.5% THC with a doctor’s approval. Also,
less than 0.3% THC marijuana is allowed without a doctor’s approval. The
program could help patients from neighboring states and Mexico.
Mexico’s economy could benefit from cannabis legalization since it
generates higher tax revenues and employment growth.
The
fate of recreational cannabis legalization in New Zealand depends on
the referendum next year during its general elections. Recreational
marijuana is still illegal in the country. New Zealand considers
cannabis to be an illegal drug under the Misuse of Drugs Act of 1975. New Zealanders have an opportunity to vote for cannabis legalization. In order to make the case stronger, a Guardian article stated that the Helen Clark Foundation published a report. Specifically, the report presents a case favoring cannabis legalization.
The cannabis plant
has two components—CBD (cannabidiol) and THC (tetrahydrocannabinol).
THC is the psychoactive component that’s responsible for the “high.”
CBD’s benefits are widely known. A Harvard Health Blog
in January discussed how CBD helps relieve insomnia, stress, anxiety,
and spasticity. CBD also helps treat epilepsy. Medical marijuana is
legal in many countries due to its various health benefits. Notably,
medical marijuana is legal in Argentina, Colombia, Chile, Croatia,
Germany, Greece, Italy, Peru, Poland, and Portugal.
Based on a team of marijuana experts, a Vice article
mentioned a few countries that might be next to fully legalize
cannabis. The report predicts that Mexico, Colombia, Argentina, Peru,
Ecuador, Thailand, the US, Australia, New Zealand, and Chile will
legalize marijuana soon.
Luxembourg also plans to legalize cannabis. Recently, the country’s health minister
confirmed the plan. Luxembourg already legalized medicinal cannabis.
Possession for recreational use is decriminalized for a small amount.
Currently,
medical marijuana is legal in 33 states in the US. In contrast,
recreational marijuana is legal in ten states and Washington DC.
Marijuana isn’t legal at the federal level. Cannabis is gaining
popularity among Americans. A Gallup showed that 86% of Americans support legalizing marijuana due to its health benefits.
Previously, I discussed how marijuana’s popularity and benefits pushed presidential election candidates to support legalization.
Also, I discussed that since cannabis is recession-proof, it can help boost US economic growth. We should also consider how the agriculture industry could benefit from cannabis legalization.
Two
drug officials at the White House want more research at the state level
to learn about marijuana’s pros and cons before it reaches the federal
level. President Trump reiterated his administration’s decision to leave marijuana at the state level. Celebrities endorse making cannabis
mainstream. Legalizing marijuana at the federal level could keep
illicit and black market deals in check, which would ultimately boost
tax revenues. There are a few disadvantages due to certain headwinds.
Considering that other countries are legalizing marijuana, will the US follow suit?