Canada faces a final obstacle to becoming the first G7 nation to legalize recreational marijuana.
Canada's Cannabis Law was presented Tuesday in the Canadian Senate, its last legislative stop. The project has broad public support and the support of Prime Minister Justin Trudeau.
"I think it is widely acknowledged that criminalizing cannabis has been a failure," said Senator Tony Dean of Ontario, one of the sponsors of the bill. He believes it will happen in July 2018, if not sooner.
Retailers have been preparing to start selling legal marijuana in July, so the timing could be difficult. But the recreational marijuana market in Canada is expected to mean big dollars.
According to the latest estimates from Marijuana Business Daily, an industry publication, annual sales for the recreational marijuana market in Canada could range between $ 2.3 billion and $ 4.5 billion by 2021.
] The Canadian market, with full federal support, will not yet exceed US revenues. UU., Where the recreational marijuana is legalized state by state.
Recreational cannabis sales are expected to total between $ 7.1 billion and $ 10.3 billion in the US UU for 2021, according to Marijuana Business Daily.
These figures do not include the expected, estimated income from medical marijuana sales in either of the two countries.
Dean believes that legal recreational sales may begin almost immediately in July, despite the short legislative window.
Unlike the legal statuses of the United States. US, which on average took more than a year to build its commercial and tax infrastructure, Canada They are based on government-backed online sales that were implemented to support the country's medical marijuana industry.
Canadians buy their pot from websites and deliver it.
Websites such as Ganja Express and Buy My Weed Online and Emerald Health Therapeutics currently offer medical marijuana customers a variety of cannabis products, from traditional marijuana sold per gram, to concentrates and groceries.
Canadian growers are preparing to meet the anticipated increase in demand when recreation customers can begin to order.
We are very well positioned for July, "said Nate Race, a management consultant for Premium Produce, a medical marijuana farm in British Columbia that has expanded its staff from 70 to 100, so it can increase the annual production of 14,000 pounds of marijuana at 134,000 pounds by the end of 2018 .
California, where recreational marijuana retail sales are supposed to be gin in January 2018, would eventually account for half of all sales in the United States. United and probably match Canadian sales by itself, according to Chris Walsh, founding editor of Marijuana Business Daily.
That's why Nick Kovacevich, California CEO Kush Bottles, who makes vaporizing equipment, said he has no plans to make business outside the US
"We have a greater market opportunity here in the US. UU. "He said.
But the unstable legal status of marijuana in the US – the federal government forbids it – means that things could change quickly for entrepreneurs who work with cannabis.
"In the US UU., The growth of recreational marijuana is artificially hampered by the fact that cannabis is illegal, "Walsh said, noting that it creates problems with banks, which face restrictions against handling marijuana money.
" The growth we're seeing in marijuana [in the U.S.] is just part of what it could be, "he said." The federal government's backing in Canada is opening many doors that are now closed in the US. "
Canada's legalization movement has already inspired a US company, the New York-based Constellation Brands alcoholic beverage company, to buy a 10% stake in the Canadian company Canopy Growth Corp. for $ 190 million.
John Kagia, a New Frontier Data badyst in the cannabis industry, called the recent movement toward Canadian legalization a "wake-up call to all investors who, sitting on the sidelines, believe that this is really going to happen "