Cannabis legalization is spreading worldwide. Uruguay was the first country to fully legalize recreational cannabis in 2013. Canada became the second country to legalize marijuana in 2018, making it the first G7 country.
Many other countries have followed the example. However, the legality of medical and recreational cannabis varies for different countries. The United States has still not made a decision about the legalization of cannabis, so that varies greatly from state to state.
Thailand promotes medical marijuana
Last year, Thailand became the first Asian country to legalize medicinal cannabis. Thailand is poised to further develop its medical marijuana market. According to a Forbes article this week, Thailand has removed low-grade cannabis and hemp extracts from its list of banned narcotics. As part of the new development plan, Thailand will allow CBD extracts with less than 0,2% THC. Thailand plans to incorporate CBD extracts to make medicines, cosmetics and food. The country wants to grow its agricultural income by growing and selling hemp.
The medical cannabis market in Thailand is gaining popularity. On Tuesday, Reuters reported that Southeast Asia venture capital firm Expara plans to raise $ 30 million in December to invest in cannabis-related technology.
Canada largest in cannabis industry
Canada legalized cannabis in 2018. The country is now continuing to legalize edibles, which contain THC and CBD, on a large scale.
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 an increase of 2020% in the sale of recreational dried cannabis in the first quarter of 94. The company also saw a YoY increase of 209% in international medical cannabis revenue. Canopy Growth plans to launch new products after Cannabis 2.0 with Martha Stewart. The share increased 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 increased by 37% and 8%, while international sales increased by 40%. The company expects to generate net sales of 100 million Canadian dollars and 107 million Canadian dollars. The company will report its fourth quarter results on 12 September. Aurora Cannabis increased by 6,5% in September.
Aphria (APHA) focuses more on medicinal cannabis. The company performed well in the past quarter. Aphria's income for marijuana for use by adults increased by 158% yoy. The company also reported a positive EBITDA of 0,209 million Canadian dollars. The share increased by 9,4% in September.
How does Mexico view cannabis?
Although Mexico decriminalized possession of a small amount of marijuana in 2009, it has not fully legalized marijuana. However, the country legalized medical marijuana, with a THC content of less than 1%, in 2017. Mexico could benefit from New Mexico's medical marijuana program targeting out-of-state patients. Last week, the Boston Globe reported that a new ruling passed in New Mexico gives foreign patients access to the program that recreational marijuana is illegal. However, Texas legalized medical marijuana in 2015.
There are strict marijuana laws in Texas. The THC content allowed in medical marijuana is quite low in Texas. The state only allows less than 0,5% THC with a physician's approval. Less than 0,3% THC marijuana allowed without a doctor's approval. The program can help patients from neighboring countries and Mexico. Mexico's economy could benefit from the legalization of cannabis as it generates higher tax revenues and employment growth.
New Zealand's 2020 referendum
The fate of recreational legalization of cannabis in New Zealand depends on next year's referendum during the general election. Recreational marijuana is still illegal in the country. New Zealand regards cannabis as an illegal drug under the Misuse of Drugs Act of 1975. New Zealanders have the option to vote for legalizing cannabis. To make the case stronger, a Guardian article stated that the Helen Clark Foundation published a report. In particular, the report presents a case that promotes legalization of cannabis.
What about other countries?
The cannabis plant has two components – CBD (cannabidiol) and THC (tetrahydrocannabinol). THC is the psychoactive component responsible for the 'high'. The benefits of CBD are well known. A Harvard health blog in January discussed how CBD helps relieve insomnia, stress, anxiety and spasticity. CBD also helps in the treatment of epilepsy. Medical marijuana is legal in many countries because of 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 listed a few countries that may be fully legalizing cannabis. The report predicts that Mexico, Colombia, Argentina, Peru, Ecuador, Thailand, the US, Australia, New Zealand and Chile will soon legalize marijuana.
Luxembourg also plans to legalize cannabis. The Minister of Health recently confirmed the plan. Luxembourg has already legalized medicinal cannabis. The property for recreational use is decriminalized for a small amount.
Where does the US go with cannabis legalization?
Currently, medical marijuana is legal in 33 states in the US. Recreational marijuana, on the other hand, is legal in ten states and Washington DC. Marijuana is not legal at the federal level. Cannabis is gaining popularity among Americans. A Gallup showed that 86% of Americans support legalization of marijuana because of its health benefits.
In addition to health benefits, cannabis can help stimulate American economic growth. Moreover, it is possible to look at how the agricultural sector can benefit from the legalization of cannabis.
Two White House drug officials want more state-level research to find out more about the pros and cons of marijuana before it reaches federal level. President Trump reiterated his government's decision to leave state-level marijuana. Celebrities endorse making cannabis mainstream. Legalization of marijuana at federal level could keep illegal and black market deals under control, which would ultimately increase tax revenues.
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