Donald Trump, the president of the United States, is proud of his rich business acumen. However, America may be getting a really bad deal because of Trump’s protectionism. When it comes North America’s next major market: marijuana.
A campaign promise was fulfill when Justin Trudeau, Canada’s Prime Minister. Presented on April 13 a bill for legalizing cannabis for recreational use (medical marijuana is legal in Canada since 2001).
Mexico’s Congress likewise followed suit two weeks later and passed a bill authorizing cannabis use for scientific and medical purposes.
Two of the three North American nations are well-position to unlock an industry. Estimated to be worth US$7.2 billion according to Forbes magazine. It is expected to grow at a compound annual rate 17%.
On the US’s other hand, a protectionist government has threatened to pull out of the “terrible” North American Free Trade Agreement. They also actively relaunched their drug war. The president of America may let his country miss the cannabis boom, according to reports.
Prohibition Is A Commercial Rich Disaster
The medical marijuana industry is growing. The pharmaceutical industry has significant potential for developing cannabinoids (a non-psychoactive component of marijuana) and tetrahydrocannabinol, which is the ingredient that gives users high.
Scientifically, marijuana has been shown to reduce the side effects of chemotherapy, relieve chronic pain and treat glaucoma. Many fields of inquiry are still untap due to the strict US laws that have made cannabis a Schedule I drug. This is the most restricted category and only applies to substances that have no accepted medical use.
Pharma companies want to disprove this thesis further, knowing that they will soon have the ability to patent cannabis-based drugs in Canada and Mexico. Patients and doctors have also pleaded for the lifting of restrictions on medical marijuana research within the US.
Eight states in the US and Washington, DC have legalized recreational marijuana. There are 29 states and the capital that have legalized medical marijuana.
US Attorney General Jeff Sessions
This fact is consistently overlooked by US Attorney General Jeff Sessions and Homeland Security chief John Kelly, who have incorrectly call marijuana a dangerous gateway drug.
Trump’s administration determine to reform prohibitionist policies. Sessions ordered federal prosecutors in a dramatic rollback of Barack Obama’s compassionate approach to nonviolent drug offenders to charge all suspects with any drug-related offense that is most serious, readily provenable offence, or whatever crime entails harsh punishment.
Law enforcement will be well aware of the implications this move could have. According to NGO Human Rights Watch, in 2015 marijuana arrests outnumbered those for all violent crimes, including murder and sexual assault, 574,000 to 505,681.
Commercial Rich Consequences
America’s drug war is also having commercial consequences. The US National Institute on Drug Abuse (NIDA) has conducted research that focuses primarily on the negative effects and not its potential medical benefits.
Medical trials on humans require authorization from multiple federal agencies. These include the Department of Health and Human Services and the Food and Drug Administration. The Drug Enforcement Agency is require for illegal substances. This makes it difficult to get clearance for cannabis trials.
Research is discourage by inconsistencies between state and federal legislation. They don’t offer a legal basis for patenting cannabis-based medicines. Potential investors in medical marijuana must consider criminal prosecution as well as corporate competition.
The industry’s potential growth remains limited because of the difficulty of American marijuana producers to obtain investment financing.