Canopy Growth (CGC) (WEED) has extended its support to the recommendations of the Cannabis Council of Canada. The council currently represents 35 licensed producers. On November 9, the council sent a public letter to reelected Prime Minister Justin Trudeau. The letter contained recommendations to help the government overcome the illegal cannabis market.
Recommendations of the Cannabis Council of Canada
The Cannabis Council of Canada provided a list of suggestions to improve the legal cannabis market in the country. The council’s top priority is the elimination of the excise tax on medical cannabis products. It believes the high price presents obstacles to user access. In addition to this, the council believes cannabis pricing is relatively high compared to the illegal market.
The council also suggested the creation of a federal excise stamp for cannabis companies to help them ship products easily. Currently, each province has a different stamp system, which has been expensive for players in the industry. A federal stamp would reduce expenses and supply issues. This change would also allow for the flexible transfer of goods according to demand.
Further, the council suggests that provinces work with Ottawa to ensure the structured pricing of products to discourage people from buying from illegal sources. The letter also advised the federal government to check the tax structure of recreational marijuana products to compare the competitiveness of the regulated market. It also recommended the government set up an export policy for the medical cannabis market. This policy is aimed at promoting business interests overseas and partnerships with banks to enhance financial access to the players in the marijuana industry.
Canopy Growth’s take on the recommendations
Canopy extended its support to most of the recommendations by the Cannabis Council. However, the company made it clear that it didn’t support the proposal to enhance the enforcement efforts against the illegal cannabis market. The company believes the responsibility for attracting consumers to the legal market lies with the licensed producers. It believes companies can achieve this by earning customers’ support and trust with high-quality products.
In line with the company’s beliefs, it also launched a program called PARDON through its subsidiary DOJA last year. The company secured around 10,000 signatures to urge the US government to expunge the records of those who have been arrested or incarcerated for cannabis-related offenses. The company recently extended its support for 2019 Expungement Week. This initiative provided legal aid to around 30 cities in the US, helping almost 77 million Americans.