Home Cannabis The US is the biggest threat to the booming cannabis industry in Canada

The US is the biggest threat to the booming cannabis industry in Canada

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2019-06-28-US poses biggest threat to Canada's booming cannabis industry

Greg Engel, CEO of Organigram (OGI) is afraid of competition from the United States. Engel is at the top of one of the largest cannabis companies in Canada. He hopes that the country's largest business association helps the weed industry stay ahead of the United States.

Engel stated this to Yahoo Finance Canada. Canada was the first G7 country to legalize the cultivation, sale and use of medicinal and recreational marijuana, gaining a huge lead and monopoly position in the world. However, several states in America soon followed. Engel hopes the new National Cannabis Working Group will push Ottawa to keep the lead. “Canada is uniquely positioned from a leadership perspective. We do things on a scale and with a reach that no one else does. ”

Economic potential

The Canadian Chamber of Commerce said last week that the new working group is calling for a government policy to help industry realize its full economic potential. Organization chart is one of the founding members together with major cannabis producers such as Canopy Growth Corp (WEED.TO) and HEXO Corp. (HEXO.TO). Parties such as Deloitte Canada and law firm Detons Canada LLP also form part of the working group.

The interest of investors has enabled Canadian companies to strengthen their international position and to build mega-breeding facilities. Of course with the explosive question in mind. Meanwhile, US federal law limits the reach of cannabis companies and forces producers to operate at street level.

American cannabis market

The growing number of states that legalize cannabis and anticipate reforms at the federal level means that investors are increasingly shifting their focus to the US. Moreover, Engel stated that it is difficult to predict how Washington's position on cannabis will change. Certainly when cannabis is more accepted and recognized as a medicine. The Canadian Chamber of Commerce must therefore prepare for a potentially changing and shifting market.
“What I really see as a threat to the Canadian industry is changes in the US from a regulatory framework perspective,” says Engel. "We have the opportunity to build on the advantage we still have in the short term."

Legalization and policy

Illinois legalized recreational use last week, becoming the eleventh official state to allow this form of cannabis use. In many states this is still being considered. There is a good chance that more and more states will be added. In the US, however, cannabis remains illegal at the federal level. It is classified as a Schedule 1 substance with no medical value and a high potential for abuse.

Engel said the new National Cannabis Working Group sets the priorities. He hopes that the financial, legal, construction and transportation industries group will eventually guide policies that advance Canadian cannabis interests globally.

“The most important aspect is that public policy and decision-making in Canada is really taken as a starting point. But I think that in many ways the Chamber of Commerce also works closely with boards of directors and works internationally. ”

Read more yahoo.com (Source, EN)

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