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Canada's Full Legalization of Marijuana

Written by Monica Savaglia
Posted June 11, 2018 at 8:00PM

Canada is one step closer to full marijuana legalization.

Canada’s Prime Minister Justin Trudeau said last month, “We are very much focused on the control and legalization of marijuana, because the current system is not working.”

This past Thursday marked a day in Canadian history...

The Canadian Senate passed legislation that would legalize recreational use of marijuana. The Senate approved the legislation 56 to 30 in a late-night vote.

This vote has cleared one of the biggest obstacles for full legalization. Now the country is on the path to permitting national use of marijuana.

It’s still unclear when recreational weed will be on sale. There’s still a lot of uncertainty in the process of full legalization.

Canadians have been hearing that it could be as soon as July 1st, Canada Day, but officials are saying there will most likely be delays and a July 1st date might be a little optimistic.

The next step in the process is for it to go back to the House of Commons with dozens of amendments. Then the House of Commons will vote to accept or reject the amendments before it sends it back to the Senate.

Senator Tony Dean, an Independent from Ontario, had this to say about full legalization:

We have a government that had the will to try to bring a sophisticated, complex approach to a complex policy challenge. The government is being clear that this has investments in public health, community health, and harm reduction.

If all goes well, Canada will be the second country to fully legalize marijuana. Uruguay was the first to welcome full marijuana legalization.

Right now, medical marijuana is legal in Canada. Not only that, but the drug is one of the country’s top exports.

According to the Canadian Imperial Bank of Commerce, Canada could see $6.5 billion in legal retail sales by 2020 if the legislation becomes law.

That kind of economic growth would be a healthy step in the right direction for any country.

Can the U.S. Learn from Canada?

Canada has been taking advantage of its current position in the marijuana industry. It has been supplying cannabis worldwide.

Jay Czarkowski, founding partner of Canna Advisors, a Colorado-based consulting group, said, “Canada is exporting all over the world right now. That should be us [the United States].”

It’s true. The opportunity to be a key player in a prosperous market is rapidly approaching. Heck, it's already here.

The U.S. has one foot in the water and has already begun to see the benefits. Retail medical and recreational marijuana sales in the U.S. will reach between $8 and $10 billion in 2018. That's a 50% increase from the previous year!

This industry has taken us all by storm. It’s not every day that we get to experience a market flourishing before our eyes... and so quickly.

It’s expected that all U.S. marijuana sales will increase to $22 billion in 2022. But it doesn’t stop there...

Not only will the industry build up the economy by adding money to it, but it’s also going to create a lot of jobs that will help fuel the economy as well. The marijuana industry is projected to add at least 340,000 full-time jobs within five years.

Trump Says He’ll “Probably” Back Marijuana

On Friday, President Donald Trump expressed support for legislation that’s designed to protect legal marijuana activities in states that have approved the drug.

Trump said he’s willing to support the bill that’s sponsored by Senators Elizabeth Warren (D-Mass.) and Cory Gardner (R-Colo.). This kind of support from the president could have a significant effect on the bill. It could be enough to convince House and Senate leaders to allow a vote on the bill.

Michael Liszewski, a policy expert for the Drug Policy Alliance, said:

To have a bill introduced by two prominent members of both political parties that would allow states to set their own marijuana laws and less than 24 hours later have the president say he’s more than open to the proposal means that we are closer than ever to passing meaningful marijuana reform at the federal level.

Forty-six states, the District of Columbia, and Puerto Rico have decriminalized or legalized marijuana. California and Colorado are the only two states right now that allow recreational sales of the drug to anyone 21 and older. However, more states could be joining them if this legislation gets approved.

There’s no point trying to fight against the legalization of marijuana. Both political parties are advocates for legalization. And now with support from the president, we can expect the gap to be bridged.

The legislation is going to give the nation the opportunity to significantly reshape the country’s legal perspective for pot users and businesses. It’s going to make sure all states have the right to decide how they’ll approach marijuana use within their borders.

Right now, the federal ban has marijuana on the same level as LSD and heroin. This has seriously complicated things for the states that have legalized weed, whether for medical use, recreational use, or both.

One of the biggest examples of this complication can be seen with any major bank. They are reluctant to work with marijuana companies because of the federal ban. Banks fear that if they do any kind of business with any of these companies, it could lead to prosecution.

President Trump’s comments on Friday come as a surprise considering U.S. Attorney General Jeff Sessions is extremely anti-cannabis. But that's okay. In my opinion, it's a welcome surprise. Embracing full legalization of marijuana could lay the groundwork for a prosperous future for the U.S.

Until next time,

Monica Savaglia

Monica Savaglia

Monica Savaglia is Wealth Daily’s IPO specialist. With passion and knowledge, she wants to open up the world of IPOs and their long-term potential to everyday investors. She does this through her newsletter IPO Authority, a one-stop resource for everything IPO. She also contributes regularly to the Wealth Daily e-letter. To learn more about Monica, click here.

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