The recreational use of marijuana will soon become legalized in Canada after a historic bill was passed by the Senate with a vote of 52-29.
Canada is now the second nation on earth — and the only G7 nation — to apply a legislation to allow a marijuana market nationwide. Nine states in the US including the District of Columbia presently permit the use of recreational marijuana, while 30 permit the use of marijuana medically.
Bill C-45, also called the Cannabis Act, originates from Prime Minister Justin Trudeau’s campaign pledge to prevent youths from using marijuana and stop crime related to marijuana.
The act for the legalization of recreational marijuana started on April 13, 2017, and in November, it was passed at the House of Commons. The passing of the bill by the Senate was the last step in the procedure.
The first country to legalize the production, sale, and consumption of marijuana was Uruguay and this was done in December 2013.
Even though the government of Canada had first declared its intention to execute by July 2018, provinces and territories, who will have the responsibility to draft their own guidelines for the sale of marijuana, have received information that they will require 8 to 12 weeks after the Senate approves the move to a new system.
The date is expected to be chosen by the government in the start or mid-September.
Justin Trudeau tweeted that it’s been too simple for Canadian children to access marijuana – and for the black market to profit from this plant. He added that legalizing marijuana will change that. He said that their plan is to legalize & regulate the marijuana bill which was passed by the Senate.
The vote was also praised by the minister of Justice Jody Wilson-Raybould.
She tweeted that marijuana legalization is a historic milestone for progressive policy in Canada. She then added that it will help secure the future of children by keeping cannabis away from them while keeping profits from the possession of criminals and organized crime.
What’s legal and what’s not
When the bill is implemented, Grownups will have the opportunity to hold and share up to 30 grams of legalizing weed in the open. Furthermore, they can grow a maximum of four plants in their homes and produce goods including edibles to be used personally.
But, the buying and utilization of marijuana will be governed by strict rules.
Marijuana users can buy weed from retail outlets controlled by provinces, territories or federally licensed manufacturers. The sale of marijuana won’t take place in locations similar to alcohol or tobacco.
The government of Canada has also executed changes to their DUI laws, to address the consequences for DUI of cannabis.
According to the bill, the minimum age of marijuana consumption is 18 years, and producing, distributing and selling cannabis products to minors is an offense.
Even though the minimum age can be increased by the provinces, the purpose is to persistently stop minors from consuming marijuana by implementing plenty of limitations similar to that of cigarettes and other tobacco products.
When will adult-use marijuana be available?
In February, the Canadian Minister of Health Ginette Petitpas Taylor said that the sale of recreational marijuana will commence in eight to 12 weeks following royal assent. She added that the government of Canada recently declared that Oct. 17 is the official date for the legalization of cannabis for adult use.
Is legalization the same throughout all of Canada’s provinces?
Surely not. Similar to the jurisdictions witnessed in legal states in the U.S. layout rules on cannabis dispensaries and legality, provinces can also control marijuana according to their view. An example of this can be seen in the Cannabis Act which permits the purchase of marijuana by adults, each Canadian province with the exception of Alberta has placed the legal age to purchase marijuana to 19 and over. Furthermore, Saskatchewan has decided to permit solely private retailers and online sales, while many other provinces are permitting retail locations operated by the government and online sales.
How much marijuana are Canadians expected to buy?
Normally, the demand for marijuana in Canadian can only be forecasted for now due to the fact that no developed nation has previously legalized marijuana. But a few reports estimated that the annual demand for cannabis will be around 800,000 kilograms, recently, Health Canada proposed that Canadians would be able to buy 1 million kilograms of cannabis on a yearly basis.
Will Canada’s marijuana industry be undersupplied or oversupplied?
First of all, Canada is expected to be hit by a shortage of marijuana. Even though there has been a fast increase in land capacity by the marijuana growers in Canada, building or retrofitting greenhouses, growing the plant, and harvesting can take a considerable time and money. Many growers have shifted their dates of completion for their main projects that vary between the summer of 2018 and the end of 2020.
But during the start of 2020, the national marijuana industry could be massively oversupplied. While estimations are accurate, the eight-largest growers seem to be on their way for a joined 1.8 million kilograms of production by 2020.
Market Boom
C-45 is forecasted to reach a billion-dollar industry, due to the fact that combined marijuana spending could increase to a maximum of 58%, particularly as consumers are forecasted to pay a premium for legally accessing the drug.
According to BDS Analytics, the forecast of the marijuana industry in the United States received up to $9 billion in sales in 2017. The sales revenue is similar to the entire snack bar industry.
Consequently, efforts to make recreational cannabis legal have made Canadian marijuana companies such as Canopy Growth Corp., Aphria Inc., and Aurora Cannabis Inc. become very friendly to investments.
While provinces are determining domestic rules of execution, the availability of marijuana will range all over the nation. Recreational marijuana in Alberta will be largely accessible in more 200 private retailers all over the province. On the other hand, the availability of marijuana will only be distributed in 40 shops governed by the state in Ontario. For those living in Newfoundland and Labrador, it will be accessible in Loblaws grocery stores.
