The global cannabis industry is young and rapidly expanding as governments around the world legalize recreational and medical cannabis products.
For many countries, the intent is to establish themselves as exporters of medical cannabis products and bolster their economy. Most countries only allow use of products cultivated domestically, refusing imports altogether, and some prefer to import products rather than regulating domestic cultivation.
Uruguay
Uruguay was the first country in the world to legalize recreational cannabis, as it is one of the most widely used drugs in the nation. While Uruguay doesn’t trade medical cannabis internationally, it has legalized growing up to six plants at home, fostered the formation of growing clubs, a state-controlled marijuana dispensary regime, and the creation of a cannabis regulatory institute. Uruguay doesn’t appear to put significant differentiation upon medical or recreational use of cannabis, both of which are legal for adult use, sold through pharmacies to patients who register nationally.
Thailand
In Thailand recreational cannabis use is legal and Thailand was the first East Asian nation to legalize medical cannabis. The law permits and regulates the use of medical cannabis purchased from licensed retailers, and households can grow up to six plants for personal use. Thailand does not import any medical cannabis products and selling cannabis for recreational use remains prohibited. Although Thailand legalized medical cannabis, no commercial producer has been granted a license for cultivation. This has led to huge demand with thousands of patients unable to access medical cannabis and limitations that keep foreign investors from successfully entering this market.
Canada
Canada is the second country in the world with a supported legal market for cannabis use, under the jurisdiction of Health Canada. Canada is seen as a giant in the medical cannabis industry, being one of the largest exporters of medical cannabis in the world, and many Canadian companies have expanded internationally to produce medical cannabis in foreign countries.
Canada has strict trade policies around medical cannabis imports but has occasionally allowed import for scientific testing. Cannabis cultivation in Canada poses particularly lucrative opportunities with the recreational market expected to continue growing.
Bermuda
Bermuda’s recreational cannabis market is also legalized, with an intended medical cannabis market hoping to offer ease of access for patients. Meanwhile, there is no legal authority to support either a medical or recreational cannabis market regardless of Bermuda’s intent to implement both. Bermuda allows for possession of up to 7 grams for personal use, and for medical cannabis each patient is allowed to import 2 kilograms per year, but they must apply to import medical cannabis themselves as there is no domestic distribution. Bermuda has long-term plans to produce its own medical cannabis products for domestic use and export, as the government has no intention of allowing cannabis imports long-term.
United States
The United States poses a massive and complicated market for medical and recreational cannabis products. It is illegal to import cannabis to the United States, although permission has been granted on cannabis products for scientific research. Nationally, cannabis has not been legalized. Each state has the power to legalize medical cannabis, of which 37 have, but medical cannabis is not allowed to cross state lines, even between states that have both legalized the product, which means each state is its own market and requires its own production.
17 of the 37 states that have legalized medical cannabis have reciprocity laws that allow patients prescribed medical cannabis to possess or purchase medical cannabis outside their home state, but the conditions for allowing this vary state-to-state, and regardless of reciprocity laws, traveling across state lines with medical cannabis is a federal crime.
As time goes on, greater numbers of countries will fully legalize recreational cannabis. While many countries legalize medical cannabis with the intention of becoming global exporters, international trade of cannabis for purposes other than medical or scientific research is not currently legal. This means the domestic cultivation of cannabis for recreational purposes in every legal market poses significant opportunities for businesses to expand internationally as the markets come into existence and new trade regimes for legal recreational cannabis emerge.