Implications of the U.S. elections on the cannabis business stretch far past America’s borders.
Industry executives in nations as far-off as Australia, Jamaica and Uruguay are weighing how the outcomes may have an effect on their enterprise prospects.
Potential impacts embody:
- How medical cannabis is managed internationally.
- Potential competitors with American companies.
What would an extra time period for President Donald Trump imply for the sprawling global business?
Could Joe Biden usher in a brand new period of development for the global medical cannabis sector?
Marijuana Business Daily reached out to executives spanning the globe for his or her perspective on the American election.
This is what they informed us:
Rhys Cohen, cannabis business guide, informed MJBizDaily the election “will affect Australia to some extent,” however he doesn’t foresee a broad influence on Australia’s steadily rising medical marijuana program.
“Australia’s cannabis industry kicked off the same year Trump took office, so it’s not as if his presence in the White House has meaningfully restricted our industry,” Cohen mentioned.
“If Biden is elected, any short-term impacts will likely be extra cultural than business. Electing a U.S. president who’s pro-decriminalisation and who would possibly take significant legislative motion down the highway may positively influence investor sentiment and affect our political narratives.
If U.S. cannabis coverage undergoes important reform in the long run, that might be a recreation changer.”
Cohen additionally thinks that “de-risking cannabis for major U.S. corporations like Facebook and Pfizer would unleash a tidal wave of global commercialization.”
“The U.S. government can significantly influence intergovernmental organizations, trade, investment and law if it so desires,” he mentioned.
Marcelo Grecco, co-founder at cannabis enterprise accelerator The Green Hub, thinks the end result of this election may outline the long run of laws for the business in Brazil.
“The proximity between Trump and Bolsonaro could mean an easier path towards hemp farming in Brazil,” he mentioned.
“Brazilian bill PL 399 is very similar to the American 2018 Farm bill signed by Trump. The bill is currently on hold in Congress, but can come back as an agenda soon in case of a republican victory,” he mentioned.
“On the other hand, Biden as a winner could not only mean a more difficult (path) to cannabis regulation, but also a distancing with other important subjects.”
George Smitherman, CEO of business group Cannabis Council of Canada, mentioned the influence of modifications within the U.S. on the cannabis area on its northern neighbor are probably to emerge slowly, even within the occasion of a Biden victory.
“There’s no doubt that, with our long-standing medicinal cannabis model and the maturity of so many Canadian companies, all eyes will be focused on opportunities to export products, skills and expertise,” he mentioned.
Nadine Walther, managing director of SpexAI, mentioned that “Europe still needs the right push” to transfer ahead extra decisively with cannabis reform, after failing to observe the instance of Canada’s adult-use legalization in 2018.
“The U.S. election of 2020 could be a turning point. As one of the biggest economies, the U.S. often sets the direction, and other nations follow,” Walther mentioned.
Luca Marola, CEO of Easyjoint, an Italian producer of “cannabis light,” is assured a Biden win may have a big effect on insurance policies across the globe.
“With potentially even more states joining the legalized market, we’re witnessing a clear wave of liberation,” he mentioned.
“It is the responsibility of the European anti-prohibitionist organizations and the most sensitive members of the institutions to bring these models, successes and experiences to the center of the debate so that what is happening in the U.S. will positively influence national and European policies.”
Courtney Betty, CEO of Timeless Herbal Care, mentioned Jamaica’s regulated cannabis sector nonetheless faces a frightening impediment in banking.
“When Jamaica legalized Marijuana in 2017, the country spoke of great opportunities and transformation of the nation. These fruits have certainly not come to bear,” he mentioned.
“Facing a possible risk from overseas correspondent banks in Jamaica to terminate relationships, Jamaican banks withheld banking privileges from what may have been a booming business.
The U.S. election could current a ray of mild for the business, he mentioned.
“The end result of the United States election will decide the destiny of the Jamaican cannabis business. Should the Democrats win, then legalization within the United States would offer hope.
“Should the Republicans win the medical cannabis industry in Jamaica will continue to face dire challenges.”
Alexandra Chong, CEO of Jacana, additionally highlighted the challenges which have arisen round banking.
Jamaica’s business is intrinsically aligned to the U.S. due to the connection between Jamaican banks and their U.S. correspondent banks, she mentioned.
“This means that any positive outcome in the elections for the U.S. cannabis industry is a positive outcome for Jamaican industry.”
José Lugardo, founder and CEO of Grupo Sativa Health, mentioned it’s unclear what, if any, influence the U.S. election may have on Mexico’s stalled cannabis business.
“Legal cannabis markets are gaining attention due to their resilience during the pandemic and the Mexican government is paying attention to them as they are looking for ways to promote economic growth,” he mentioned.
“It is unclear if the result of the US election will accelerate the legalization process, but it can definitely have an impact as current legislators are hopeful to sign our cannabis legalization bill into law before its Dec. 15 deadline.”
Jordan Lewis, CEO of Fotmer, thinks the influence of the election outcomes “can’t be overstated” as a result of “much of the rest of the world looks to the U.S. to take the lead in terms of regulation and legalization, and a Democratic outcome will significantly accelerate market growth both in the U.S. and around the world.”
The most speedy influence probably can be passage of the SAFE Banking Act, which might function “one of the first real ‘wins’ in a new administration.”
“This will bring about much needed normalization of banking at the federal level and will help facilitate taxation and open up new investors – read: institutions – into the market,” he mentioned.
“For companies such as Fotmer, based in Uruguay, fluidity in international banking and access to traditional credit facilities will help accelerate our growth and lead to much more cost efficient financial transactions.”