In 2013, Uruguay is the first country to legalize recreational cannabis use. This precursor has been rapidly followed by many countries over the past six years, such as Canada or several US states. In some parts of the world, decriminalization has been chosen. This is particularly the case in Europe. Faced with this momentum of legalization throughout the world that France is waiting to launch? Is the cannabis business really profitable? Response elements.
Profits generated by legalization
The first studies that emerge on the legalization of cannabis for recreational use demonstrate a monstrous financial windfall. In 2016, in the United States, the industry allowed the states of Colorado and Washington to reap between $ 200 million and $ 300 million in taxes. That same year, Americans would have spent about $ 6.7 billion to legally obtain cannabis, according to Arcview Market Research.
Also in Colorado, in the first three years of implementation of the new legislation, nearly 18,000 net jobs were created. An impressive figure when we know that the state is home to a population of only 5.5 million.
If this industry is so lucrative, it is because it gives states the opportunity to pocket three times more taxes than alcohol. In total, for Colorado, it would be almost 500 million dollars collected between 2014 and 2017. A manna that will still allow the state to invest in education and awareness programs against drugs.
This legalization has paved the way for mass tourism. Indeed, Colorado is isolated, in the middle of states that have not legalized cannabis for recreational use. Thus, it attracts many border workers who wish to obtain this product in accordance with the law. This phenomenon is found in many countries in Europe.
Cannabis in the European Union
On our continent, most countries have opted for decriminalization. Consumption is allowed, as long as the law is respected. For example, Spain, Portugal, Italy, Switzerland, the Netherlands, Austria, Norway, Estonia, Moldova, the Czech Republic, Slovenia and Croatia have decided not to condemn consumers. In Germany and Poland, recreational cannabis is still illegal but tolerated.
In concrete terms, decriminalization allows a very controlled consumption. In the Netherlands, for example, recreational cannabis can be consumed only in coffee shops and at home. It is forbidden in the street. In fact, Amstellodamois smoke very regularly in the city without being verbalized. This business and this "laxity" towards smokers work quite well for the Netherlands. A little too well.
As a result, tourism growth has become far too important for Amsterdam and other parts of the country. Some cities have taken strong measures. In 2010, a judgment of the Court of Justice of the European Union allows Maastricht to prohibit the access of its coffee shops to tourists. Amsterdam has, for example, stopped advertising promoting the city. Faced with the massive influx of cannabis tourists, The Hague (the country's economic capital) became the first city in the Netherlands to ban this substance in its city center.
Do not become the new Amsterdam
Observing the problems encountered by the Netherlands, Luxembourg has taken radically different measures. The country is on the verge of being the first European state to fully legalize the use of recreational cannabis. However, the Prime Minister has already announced that he does not want to become "the new Amsterdam".
Thus, Luxembourg will only allow residents of the country to procure cannabis. Etienne Schneider, Minister of Health, is very firm and refuses any sale to border workers. The goal of the country is not to generate business around legalization, but to counter the black market. As Etienne Schneider explained, the ban only feeds the parallel circuit.
By legalizing cannabis for recreational use, Luxembourg primarily wants to regulate this business. The goal? To provide its inhabitants with products of better quality. The bill will allow consumption only in the private setting. It will be banned in the streets and cafes. The entire income will not go into the pocket of the state, but will be dedicated to a prevention fund very active in the prevention of many dangers such as drug addiction.
Cannabis and black market, a great love story
In Colorado, as in Luxembourg, the original idea was to regain control of illegal trafficking that generated billions of dollars. Problem: In some countries that have legalized the recreational use of cannabis, the black market is growing.
Why ? First, because the taxes are too high. In Colorado, these amount to 29.9%. An increase that makes consumers cautious about buying cannabis legally, especially since the US state has also allowed the growth of its own cannabis plants. A decision that contributed to the rise of the black market.
Colorado is isolated in the middle of states that have not legalized the recreational use of this substance. Thus, the various black market players no longer hesitate to grow their plants in this area where it is legal, before selling them to consumers who live in the border regions.
Since 2014, the DEA, the agency in charge of the fight against drug trafficking, estimates that it dedicates 15% of its time to cannabis. A figure that tripled compared to the period before legalization. Nearly ten states around Colorado are watered by cannabis produced in Colorado.
The failure of legalization: the Canadian case
In the north of the United States, the situation is not very glorious either. Some experts have suggested that legalization would not lead to an increase in the number of consumers. In the first quarter of 2019, Canada saw the arrival of 646,000 new customers.
This significant increase has had a real impact on Canada's cannabis stocks. Legalized on October 17, 2018, the state was already short of merchandise 10 days later. As a result, the stores had to reduce opening hours, opening only four days a week. While the government had planned the installation of 50 points of sale before the end of December, only 12 opened their doors. Consequence: once again the black market has ignited.
Cannabis in France
At the end of 2018, the Center for Drugs and Drug Addiction reported that cannabis use in our country had reached its highest level in 25 years. If France has one of the most repressive policies in this area in Europe, it is also the country with the highest rate of experimentation. In 2016, in France, 41.4% of 15-64 year olds had used cannabis at least once in their lifetime, compared to an average of 18.9% in Europe.
In mid-2019, the Economic Analysis Council (EAC) drew up an inventory of the consumption of this substance in France. The study highlights the fact that the number of cannabis-related cases is so important that justice can not capture them all. Some solutions are put in place to relieve the courts, ranging from a simple reminder to the law to a fine of 200 €. Nevertheless, the police and justice dedicate an important part of their time and resources.
To combat the use of cannabis, the estimated budget would be 568 million euros. " If one adds the losses of incomes, production and compulsory levies related to imprisonment, the social cost of cannabis would be 40% higher, ie 919 million euros. "Explain the CAE experts. Nearly one billion euros would be disbursed by the state for a clandestine business that therefore yields nothing. What is the government waiting for to decide?
The drug through the ages
Before understanding why France does not legalize recreational cannabis, it is important to know how drugs were banned. In the XIXe century, their consumption was very widespread. Many people around the world were opium addicts, for example. There were about 25 million regular consumers in the early 1900s. This represented about 1.5% of the world's population at the time.
It's only at the beginning of the XXe century that the war on drugs is declared. In 1961, the United Nations took the lead in ratifying the Single Convention on Narcotic Drugs. This text allowed the production and use of drugs only for medical or scientific purposes.
In the United States, Richard Nixon made this fight a national cause, for his reelection in 1971. In reality, his mantra, War on DrugsWas only an attempt to discredit his two enemies, African Americans and hippies by associating them with an image of drug addicts.
After several years of fight against drugs, several Nobel Prize winners sign the report Ending the Drug Wars, in 2014. This forum demonstrates the negative effects of a repressive policy against drug users.
Today, some figures from the world report on drug use demonstrate significant business potential. Nearly 3.9% of the world's population is said to have used cannabis at least once in its lifetime, about 192 million people, according to the 2016 study. Consumers who can not afford it legally.
When will France legalize cannabis?
The CAE highlights one important point: in general, in countries that decriminalize cannabis, crime tends to fall. His report also indicates that France could greatly benefit from a legalization of cannabis. Indeed, this decision would allow the country to make a significant savings on the costs incurred to fight against this substance. In addition, the tax and taxes generated by the legal sale of cannabis represent a significant financial windfall for the state.
However, France is very reluctant to such legalization. Between 2018 and 2019, many coffee shops opened their doors, selling products containing cannabidiol in very small quantities. The government has closed them in their great majority.
In August 2019, Édouard Philippe spoke about the possibility of legalizing cannabis for therapeutic use. Although the government was considering this track soon, the Prime Minister said that this decision would not open the way to the decriminalization of cannabis. In the coming months, Luxembourg will serve as a test area for Europe. If it manages to master this business, the country could be a model for many other states in the EU.
The effects of cannabis on health
This is of course the big black spot that worries the public authorities and slows the legalization of cannabis in France. In the United States, the record is mixed. Hospitals experienced a 5% drop in attendance for chronic pain. But cannabis use would have increased by 10% the number of road accidents according to the British Medical Journal.
However, the CAE, which puts forward numerous studies of the 2017 health risks of this product, asserts that the effects in humans are minimal. " In fact, cannabis is a special drug because, unlike heroin, cocaine or even alcohol, it is almost impossible to overdose. In addition, cannabis is much less addictive than other legal substances (alcohol, tobacco). "
The cannabis business also extends to the education sector. Indeed, faced with the success of the legalization of this substance across the Atlantic, many universities have developed courses dedicated to cannabis. Some studies predict that this market will have created 467,000 jobs in the United States by 2022.
Thus, prestigious American and Canadian institutions like The University of Washington, UCLA or Northern Michigan University award a state-recognized diploma. The courses cover the entire spectrum of cannabis, from biology to medical and economic impact. What spark vocations across the Atlantic.
Here’s what you need to know before visiting your regional medical dispensary:You may need a doctor’s recommendation, medical cannabis certification, or whatever appropriate documentation is needed by your state. Ordinarily, you need to be 18 or older to qualify for a medical authorization, but exceptions could be made in some states for minors with especially debilitating problems. You will often register with a medicinal dispensary. This is to maintain your medical cannabis recommendation or certification on file for legal and regulatory purposes. There will be a waiting space. This will be to control the circulation of product and patients, but a straightforward dividing wall also gives patients privacy and direct one-on-one contact using a budtender to discuss medical issues. This procedure can help budtenders and patients track effective medicine in addition to possess a living listing of manufacturers and products for future reference and follow-up. Medicinal dispensaries usually permit you to smell and examine the buds before purchase. This might vary from state-to-state.
DOES AN APPLICANT NEED MUNICIPAL APPROVAL BEFORE RECEIVING A RETAIL CANNABIS LICENSE? Yes, municipal approval is necessary prior to the AGLC will issue a retail cannabis license. Applicants must get in touch with their intended municipality to learn requirements regarding municipal retail cannabis legislation, zoning requirements, land-use limitations, and place requirements regarding how close a retail store is into a provincial medical care centre, school, or parcel of land designated as a college reserve.
Keep non-medical cannabis legal Adults who are 19 decades or older are able to:Possess up to 30 g of legal dried cannabis or the equivalent in their person. Share up to 30 g of legal cannabis with other adults in Canada. Purchase cannabis products from a Yukon Liquor Corporation licensed merchant. Grow up to four plants per family. It is illegal to provide non invasive cannabis to anyone under the age of 19 and also for anybody below the age of 19 to have any amount of anti inflammatory cannabis in Yukon.It is illegal and dangerous to drive while under the influence of cannabis or other intoxicants.