Politicians in Canada believe recreational marijuana could become legal as soon as July of next year. If this does happen, it would make Canada the first nation in the G7 to decriminalize the drug.
Canadian lawmakers introduced Bill C-45 (aka “The Cannabis Act”) to the Senate on November 28th. Most senators who were interviewed said they supported the legalization of recreational marijuana. It’s widely known that Canada’s Prime Minister Justin Trudeau is a big supporter of this issue.
Cannabis farmers and retailers are already getting ready to enter Canada’s new marijuana market. Many retailers are planning to sell their products in July of 2018.
There’s no doubt that this new industry will dramatically help the Canadian economy. Statistics from the Marijuana Business Daily suggest that the Canadian recreational cannabis market could be worth between $2.3 billion and $4.5 billion within only three years.
This latest report from Marijuana Business Daily also showed expected revenues for America’s marijuana market by 2021. Analysts say the current US market could earn between $7.1 billion and $10.3 billion. As of today, only eight US states have fully decriminalized marijuana for both recreational and medicinal use.
From these figures, it’s obvious to see that the Canadian market won’t be as robust as even a small percentage of the American market. The one thing in Canada’s favor, however, is that the federal government will fully support this new industry. As of today, the US federal government still considers marijuana illegal.
Numerous American investors are extremely interested in the potential of this new Canadian industry. Just a few weeks ago, the Fortune 500 company Constellation Brands bought a 10 percent stake in Ontario-based marijuana retailer Canopy Growth Corporation.
Financial analysts say Constellation Brands’ $190 million stake in Canopy Growth Corp. should inspire faith that this new bill is the “real deal.”
Canada’s many marijuana cultivators are expanding their staff in preparation for the increased demand. One marijuana farm in British Columbia expects to increase yearly production from 14,000 pounds to 134,000 pounds by 2018.
Retailers in Canada will use the federal government’s online sales and tax infrastructure for recreational marijuana. This online infrastructure was built with the help of the government to support the nation’s medical marijuana industry.
Medical marijuana is fully legal across Canada. Most people who order medicinal marijuana use websites such as Emerald Health Therapeutics or Ganja Express.