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US – German Cannabis Producers Can’t Do Business Together, Here’s Why – by Michael Knodt @ marijuana.com

US, German Cannabis Producers Can’t Do Business Together, Here’s Why


BY MICHAEL KNODT ON

Bureaucratic hurdles and an unexpectedly high demand for medical cannabis in Germany have created a bottleneck that’s plagued cannabis patients and producers alike. It would seem as though working with the United States could alleviate some of the pressure, but the federal government in Germany has avoided working with the country’s producers for fear of violating the United Nations Single Convention on Narcotic Drugs.

Until Germany can develop a robust cannabis cultivation industry, its patients will continue to receive their medicine sporadically from Canada or the Netherlands. While 18 varieties of cannabis are supposed to be available, patients are lucky to find four strains at their local pharmacy — a significant issue when German doctors are required to prescribe a specific strain for patients. If that strain’s not available, the prescription is worthless.

Once the Israeli government has defined their guidelines for cannabis export, their medical cannabis will find its way into German pharmacies to help alleviate the recent bottlenecks. Israel is expected to develop a cannabis export system in the next couple of years.

Cannabis farmers in the U.S. West Coast, Nevada, Colorado, and Alaska might welcome the opportunity to expand into international markets, and patients in Germany could benefit from the new, highly effective selection of U.S. cannabis strains. But the United Nations Single Convention on Narcotic Drugs labels cannabis on par with cocaine and opium — therein lies the problem for Germany doing business with U.S. cannabis producers.

The Single Convention on Narcotics and Drugs of 1961 is still the foundation of worldwide drug legislation. It includes the coca, opium poppy, cannabis, the opium plant’s raw materials, opiates, heroin, and some synthetic opioids such as methadone. The Convention on Psychotropic Substances of Feb. 21, 1971 extended the list of controlled substances to include psychotropic substances such as amphetamines, barbiturates, and LSD and came into force on Aug. 16, 1976.

Only the medical use of narcotics for pain relief is excluded from the Convention but has to be enacted in compliance with the measures deemed necessary by the United Nations (UN). Member nations must report their produced, exported, stored, and used narcotics to the Narcotic Control Council.

A State Must Purchase All Medical Cannabis Crops

Article 23 of the Single Convention states:

A Party that permits the cultivation of the opium poppy for the production of opium shall establish, if it has not already done so, and maintain, one or more government agencies (hereafter in this article referred to as the Agency) to carry out the functions required under this article.

Article 23 (2) (d) says: “All cultivators of the opium poppy shall be required to deliver their total crops of opium to the Agency. As soon as possible, but not later than four months after the end of the harvest.”

According to Articles 26 and 28 of the Single Convention, the same control system applies to coca and cannabis. Health Canada is in violation of Article 23, paragraph 2d for allowing producers to sell directly to patients. Unlike the Office of Medical Cannabis (OMC) in the Netherlands, the Canadian agency does not purchase and sell the licensed producers’ crops.

The establishment of such an agency is independent of whether government institutions or licensed private providers take over the cultivation. Such agencies only exist in the few states where opium, coca, and cannabis are grown legally: The Turkish Grain Board (for Opium in Turkey), Health Canada’s Office of Controlled Substances, the National Institute on Drug Abuse in the U.S., the Federal Institute for Drugs and Medical Devices (BfArM) in Germany, the Austrian Agency for Health and Food Safety, the Office of Medicinal Cannabis in the Netherlands, the Czech State Agency for Medical Cannabis, and the Medical Cannabis Unit in Israel.

The U.S. government would have to recognize the medical benefits of cannabis and remove the drug from Schedule 1 of the narcotics act before the NIDA could offer medical cannabis for export to the German BfArM.

Ways Around the Single Convention

It is almost impossible for a member of the United Nations to legalize cannabis without coming into conflict with the international community. Uruguay, Bolivia, and Canada have already had to deal with the issue and have each taken different approaches to reconciling new national policy with existing international agreements.

Out and Back In

In 2009, the Bolivian government proposed deleting some provisions regarding the coca leaf, but the proposal was rejected by the other member nations. On June 29, 2011, Bolivia withdrew from the Single Convention through Jan. 1, 2012 and rejoined with an objection to Article 50 on Jan. 10, 2012.

Bolivia stated that it would allow the cultivation, trade, and consumption of coca leaves in its country. Within one year, 15 contracting nations filed an objection, well short of the one-third quorum required to reject Bolivia’s objection. Bolivia was reclassified as a contracting party on Jan. 11, 2013.

Ignore the Issue

Uruguay was reprimanded shortly before the legalization of cannabis by the UN Drug Administration’s International Narcotic Control Board (INCB). The former INCB-president Raymond Yans accused Uruguay’s then-president Jose Mujica of having an “attitude of a pirate” because his government legalized cannabis. Mujica fiercely resisted the allegations repeatedly made against his country and publicly responded to the criticism of the former INCB chairman:

“Tell the old man to stop lying. We can meet whenever he wants in Uruguay. […]. He sits in a comfortable position on the International stage and believes he can tell nonsense.”

Despite the dramatic exchanges, the international community has not sanctioned Uruguay for being the first country in the world to legalize cannabis. Incidentally, a similar complaint was addressed to the United States after the legalization ballots in Colorado and Washington State. In November 2012, Yans stated the legalization of the cultivation and possession of cannabis in Colorado and Washington violated the treaty and asked the U.S. government to restore conformity with the single convention.

Recreational cannabis is legal in eight states and the District of Columbia, and the international community is far from sanctioning the U.S. However, ignoring the treaty also means missing out on access to the international market and the opportunity to take part in international research efforts.

Don’t Comply, Justify

At the 59th meeting of the United Nations Commission on Narcotic Drugs in March 2016, Undersecretary for Health of Canada Hilary Geller expressed Canada’s interest in international cooperation and made it clear, “the Government remains committed to strong international cooperation to combat the world drug problem and wherever possible, will seek to align its objectives for a new marijuana regime with the objectives of the international drug control framework and the spirit of the Conventions.”

Canada is the first to take the position of “non-compliance.” With Geller’s announcement, Canada has laid the foundation for an ongoing debate on how to regulate cannabis at the national level without violating international legal obligations.

Change

Even if the 1961 Single Convention could be amended, that would involve a complex, years-long process.

Canada could set a precedent in July 2018, by forcing the U.N. to rethink the position of cannabis for the first time since 1961. The aim of the process would be to give all member nations the opportunity to regulate recreational and medical cannabis in the future. Legislation in international agreements is never set in stone, it can be changed any time the democratic will of the member nations demands it.
ABOUT AUTHOR
Michael Knodt is an expert on cannabis politics and cannabis culture across Europe. Born in North Germany, Michael has been living in Berlin since 1990. He initially studied history and journalism before receiving his certification as a carpenter. Since then, Michael has made regular visits to countries where cannabis is cultivated, such as Jamaica and Morocco. He has worked as a freelancer for Weedmaps, Vice Magazine Germany, Sensi Seeds and numerous German-language cannabis magazines since 2004. From 2005 to 2013, Michael was the Editor-in-Chief of Germanys biggest cannabis periodical. He also is the face and presenter of the most popular program on cannabis prohibition and just launched a new channel called “DerMicha.” Aside from his journalistic work, Michael is a cannabis patient, activist, sought-after speaker on conferences and congresses, and a father of two.

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Banks versus pharmacists – first official extortion in the public drug scene – URUGUAY – by HANF JOURNAL .de

https://hanfjournal.de/2017/08/18/apotheken-in-uruguay-werden-aufgrund-legalen-hanfhandels-von-banken-verschmaeht/

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After moving forward in Uruguay in order to keep the own population of black market traders of illegal substances , unexpected hurdles seem to arise in the first country of the re-legalization of cannabis. The pharmacies in Uruguay are scorned by legitimate hemp trade by banks and have to fear their hitherto maintained money accounts. Either the cannabis sale would be discontinued, or abandoned to the formerly valued customer, it says on the side of the money institutions.

The President of the State Banco de la República, Jorge Polgar, said that no relations with pharmacies would have been accepted which would have received a license for the trade in marijuana . This is to prevent the international isolation of the bank which would actually be possible due to cross-border activities of the domestic financial institutions in the USA. According to international regulations, no accounts should be kept which are connected in any way to drug trafficking. Even if the government in Uruguay does not provide criminal prosecution for the public trade in cannabis – even behind the state’s distribution – the banks of the brave country feel their hands bound to international law.
In the absence of a solution to the surprising tangle mill in Uruguay, many of the twenty approved pharmacies would have to end their trade with the coveted and extremely affordable natural substance . A threatened blocking of his own bank account forced the medication-offering businessmen to the reluctant action, explained a lawyer of the pharmacist settlement of Uruguay.

Banks versus pharmacists – first official blackmail attempts in the public drug milieu!

 

 

 


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The State of Cannabusiness in Germany

The State of Cannabusiness in Germany

As a cannabis business executive, you undoubtedly have been following some of the significant events happening in Europe and you have asked yourself: “How does this affect my plans?”

It may be the German government establishing a nationwide medical marijuana program, or news about the Canadian companies buying or merging with their European counterparts that has your attention. But you know the times are a changin’ and you might want to benefit from this historic moment in our Industry.

For those companies that already have a strategic international plan in place, the opportunities are boundless.  Germany, a nation with 2.5 times the population of California, is leading the way with the a national, Federal-government approved, medical marijuana law already in place, and numerous regional efforts to establish recreational use are getting off the ground as I write this column.

Having been an advocate in California during the medical marijuana legalization push of 1990s, and now living here in Germany as they build their own regulated marketplace, it has been fun to be involved. I’d now like to share some of the organizations that may be able to help you and your company, if Europe is indeed on your radar.

Das Bundesinstitut für Arzneimittel und Medizinprodukte (BfArM) is the German federal government’s  Institute for Drugs and Medical Devices and is lead by Professor Dr. Karl Broich. Their website is www.bfarm.de and they are basically the cannabis bureau of Germany, charged with implementing the medical marijuana law.  Interestingly, they will also be the sole purchaser of foreign-produced medical marijuana products, and then oversee the distribution exclusively though licensed pharmacies.

So Germans will be going to their local pharmacy to obtain their medicine, which officially should be paid by their insurance company.  Of course, the details are still being worked out, and I know of at least two lawsuits against insurance companies not paying for their clients medicine.

Last month, the BfArM put out a call for bids for the first ten authorized grow licenses in the history of Germany.  Negotiations are underway and the winning bidders should be announced shortly.  We will keep you updated on this, and all important details emanating from Europe, in future columns.

The Deutscher Hanfverband (DHV) is the German Hemp Association in Berlin and a fantastic resource and advocacy organization. They have been instrumental in getting the country to this point and their website is https://hanfverband.de I highly recommend signing up for their newsletter (which can easily be translated.)  Their next big event is the Hanf Parade in Berlin in August which will bring together over 10,000 advocates calling for open access.

For companies that want to get serious about being in Europe, the best organization I know of is the German Trade and Investment office located in Berlin which is part of the German Federal Ministry of Economic Affairs. Their website is www.gtai.de.

Their knowledge is vast, their connections incredible, and there is no charge for their services. They want to make it easy for international companies in our space to help Germany build their regulated marketplace. They provide advanced research, site-selection, tax information. And.. they are just an email or phone call away.

Of course, there are a total of 51 independent states that make up Europe and 28 of those make up the European Union.  To some degree all of these countries are changing the way they treat medical marijuana and CBD products.

If you are looking for some opportunities in this region, I would suggest looking not only at Germany, but also The Netherlands, Spain, United Kingdom, Switzerland, and the Czech Republic. Although Israel is not in the EU region, their expertise, leading edge research, products and capabilities are to be noted.

Before concluding, I need to give a shout out to Mr. Alex Rogers and his team at ICBC Berlin who put together one of the best industry events I have ever attended.  Back in April, in Berlin, almost 1000 attendees and exhibitors from throughout the world gathered to share information, make connections and close business deals.

Congressman Dana Rohrabacher, chairman of the Cannabis Caucus in the U.S. House of Representatives, was the keynote speaker and shared stories on his German ancestry, his first meeting with Ronald Reagan, and why legalizing our plant makes sense in so many ways.

Tommy Chong was also in attendance, was way coherent, and meeting him was definitely one of my personal highlights.  Yes, I admit it, I listened to his albums way back in 1971.

So I wish you a productive, successful and fun month ahead as we collectively take the next steps to “Make Cannabis Great Again” here in Europe, and wherever you are reading this in the world.

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There are significant opportunities for investors looking to profit from the expanding marijuana industry in other countries.

http://host.madison.com/business/investment/markets-and-stocks/forget-the-u-s-marijuana-market—-there/article_d7702424-c20b-5e1f-9987-70105d72cc8a.html

Marijuana stocks have soared as state after state in the U.S. has legalized marijuana for medical or recreational use. The market potential is huge, with some estimating that the marijuana industry in the U.S. could generate sales of more than $18 billion by 2020.

But focusing only on the U.S. is nearsighted — literally. There are significant opportunities for investors looking to profit from the expanding marijuana industry in other countries. Here are several important areas across the world with growing marijuana markets along with some of the marijuana stocks that could benefit from that growth.

Image source: Getty Images.

North America

Canada was the first North American country to legalize medical marijuana nationwide in 2001. Through the years, the Canadian medical marijuana market has grown but still stands at only $100 million or so. However, the market for medical marijuana in the country is projected to increase to roughly $900 million by 2020.

The bigger story for Canada is the prospect of legalization of recreational marijuana. Prime Minister Justin Trudeau is pushing for legislation that would legalize the drug for recreational use effective July 2018. However, there has been significant pushback that could derail the effort. If Trudeau succeeds, though, the Canadian marijuana market could increase to as much as $22.6 billion annually, according to research by international accounting and professional services firm Deloitte.

Mexico became the second North American country to legalize medical marijuana nationwide in June 2017. Legislation supporting legalization passed overwhelmingly in the Mexican congress. Recreational use of marijuana is still widely prohibited, although the government is considering the possibility of allowing Mexican citizens to legally possess up to one ounce of the drug.

How big could the Mexican marijuana industry be? It’s not likely to be nearly as large as either the U.S. or Canadian markets. However, Stuart Titus, CEO of Medical Marijuana, Inc. (NASDAQOTH: MJNA), thinks that Mexico could be an opportunity for cumulative revenue for his company alone over the next 10 years of $1 billion to $2 billion.

South America

In 2013, Uruguay became the first country in the world to fully legalize the sale and use of marijuana. As of July 2017, pharmacies in the South American nation will be allowed to sell marijuana over the counter.

While no other countries in South America have gone as far as Uruguay, several have relaxed marijuana laws in recent years. In 2015, both Chile and Colombia legalized medical use of marijuana or marijuana-based medications. Argentina approved medical use of marijuana in March of this year.

Brazil, which has the largest population of any country in South America by far, hasn’t legalized marijuana yet — although possession of small amounts of the drug has been decriminalized. There are signs that support for marijuana legalization is growing in Brazil, however, including a public statement by one of the country’s Supreme Court justices calling for legalization of marijuana.

The marijuana industry in South America remains relatively small at this point. Even in Uruguay, the industry has grown at a snail’s pace largely due to lack of funding for government agencies that oversee the marijuana market. Over time, however, it seems likely that the South American opportunity will become more significant.

Image source: Getty Images.


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Cannabis user registrations in Uruguay have started

Last Tuesday the last preparations for the reversal of the Marijuana conquest in Uruguay began in Uruguay. From next summer, citizens of the small South American country, which are registered in advance, will be able to legally purchase cannabis in pharmacies, which will in future block down black market trafficking and guarantee the protection of minors. Although one-third of the population did not support the steps in 2013, the cannabis users’ registrations have now started in Uruguay, which marks the end of the reintroduction of marijuana.

 

Although the demand for the buds of the hemp plant in Uruguay has not increased since legalization in the country , the government under President Tabare Vazquez still fulfills the projects of the predecessor Jose Mujica , under which Uruguay became the first country on earth, the cannabis despite resistances relegalisierte. Citizens are to be given access to up to 40 grams of cannabis via the usual pharmacy purchase, which must be registered beforehand. Fingerprints and a signature should then ensure that no tourists arrive at the coveted greenery from July 2017, which will undercut the black market value at a price of € 1.20 per gram by about half. Asked persons, Who have voluntarily left their data, see in development a ” great step forward in the evolution of the citizens. “Simultaneously with the start of registrations on 02.05. The government published some videos that are supposed to reveal the health hazards of the cannabis use. Only two manufacturers will be able to produce quality-tested marijuana for the state, with some of the sales of which will flow into further preventive work. Since the cultivation of cannabis in Uruguay is still allowed in the home, the varietal diversity of the plant is fortunately not once legally counteracted. “Simultaneously with the start of registrations on 02.05. The government published some videos that are supposed to reveal the health hazards of the cannabis use. Only two manufacturers will be able to produce quality-tested marijuana for the state, with some of the sales of which will flow into further preventive work. Since the cultivation of cannabis in Uruguay is still allowed in the home, the varietal diversity of the plant is fortunately not once legally counteracted. “Simultaneously with the start of registrations on 02.05. The government published some videos that are supposed to reveal the health hazards of the cannabis use. Only two manufacturers will be able to produce quality-tested marijuana for the state, with some of the sales of which will flow into further preventive work. Since the cultivation of cannabis in Uruguay is still allowed in the home, the varietal diversity of the plant is fortunately not once legally counteracted. Only two manufacturers will be able to produce quality-tested marijuana for the state, with some of the sales of which will flow into further preventive work. Since the cultivation of cannabis in Uruguay is still allowed in the home, the varietal diversity of the plant is fortunately not once legally counteracted. Only two manufacturers will be able to produce quality-tested marijuana for the state, with some of the sales of which will flow into further preventive work. Since the cultivation of cannabis in Uruguay is still allowed in the home, the varietal diversity of the plant is fortunately not once legally counteracted.

 

And while in Uruguay the first registrations for the guaranteed supply of the best marijuana breeds were submitted by adult citizens, the first legally imported commercial medicinal cannabis wholesale deliveries from doctors are finally received at the other end of the world in Australia ..

 

Registrierungen für Cannabiskonsumenten in Uruguay gestartet