As the tides turn in the international marijuana debate, the world has been watching intently as multiple countries begin to change their policies about a drug that was once deemed dangerous and unlawful. Now, South Korea is beginning to follow in the light of its neighbor North Korea for legalizing medical marijuana, and Australia is seeking to help producers set up shop to produce medical marijuana within borders. Meanwhile, the United States is still split down the middle about the debate, with more states moving in favor of the drug. As of October 17, 2018 (this Wednesday), Canada will officially set its record straight with legalizing cannabis. However, as with any major decision from lawmakers, this one is not without its major speedbump: cannabis supply. Here is a closer look at Canada’s weed problem.
Not Enough Weed to Go Around
After 100 years of steadfast legislation outlawing marijuana, the Canadian government has made an official decision to legalize the drug on October 17, 2018. However, the problems do not lie in the restrictions on the drug. The main issue revolves around the amount of weed that will be available to the public.
According to a report by the University of Waterloo and the C.D. Howe Institute project, an estimated 70% of Canadians will not have access to marijuana. At this time, suppliers will only be able to supply 30 to 60% of the total demand in the year following the legalization date. Why is this a problem? Canada has a legal supply of 210 tonnes. To meet the demand, suppliers would have to retain 610 tonnes.
What Happens Next?
Based on these statistics, researchers believe that, due to the lack of availability, the black market will continue to profit from marijuana sales. Furthermore, the Canadian government will suffer a $744 million loss in tax revenues (based on the standard price of $9 CAD per gram). The main reason the country is suffering from a marijuana low is due to the fact that licensing cannabis takes a long time, and regulatory schemes are also being introduced at a moderate pace into the country.
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