The inherent contradictions of U.S. marijuana laws seem to be in the news almost every week.

For example, at the state level, Virginia recently became the latest jurisdiction to allow adult-use marijuanawhich came into effect on July 1 this year. But just a few days later, Court upholds U.S. federal tax law Treat state-licensed cannabis businesses as illegal drug dealers.

To resolve such conflicts, U.S. Senate Majority Leader Chuck Schumer said he would Legislation to “decriminalize” Federal marijuana.

When drafting his bill, he should draw inspiration from Canada. Congress may be too divided Fully legalized this year, but it could start to provide the clarity that Canada’s approach provides.

American conflict

Congressional action is clearly needed because federal law is lagging state efforts in three areas.

First, state-level legalization means that the laws are different in each state.

As a result, state-licensed businesses face operational inefficiencies and market fragmentation. A state-authorized medical user may arrested in another.

Second, even with states legalizing marijuana, marijuana remains federally illegal. this means State Licensed Cannabis Company Difficulty in obtaining bank accounts and financing, forcing them to operate primarily in cash. This makes them prime robbery targets.

At the same time, consumers cannot legally carry state-authorized marijuana across state lines, although many people do.

Federal illegality also hinders research. This Senate Drug Caucus and several federal agencies They have made it clear that they want more cannabis research. But the Drug Enforcement Administration (DEA) allows only one university growing cannabis for research. It has stopped federal licensing for new growers And blocked research involving state-licensed marijuana.

Third, the US government is lax in law enforcement.

For example, Congress bans federal authorities Oppose states’ medical marijuana systems. The ban must Updated annually remain valid.

Likewise, the administration of former President Barack Obama choose not to sue State licensed cannabis business. But this non-intervention policy Cancelled under his successor Donald Trump.

In contrast, Canada’s approach is clearer.

Clarity in Canada

Government of Canada Start legalizing medical marijuana 2001. it authorizes recreational use Cannabis flower and oil in 2018, followed by food and lotion in 2019.

the government wants Legitimate products attract existing users without encouraging new ones, so it allows multiple products.

But there are few advertisements and the packaging is plain.

read more: More packaging and labelling flexibility for cannabis producers

Medical sales are regulated by the statePhysicians can authorize cannabis treatments, and patients can then grow the plants themselves or buy products from licensed producers.

Meanwhile, provincial governments oversee entertainment sales. Some run a public store while others Licensing Private Sector Outlets.

The system allows businesses to ship cannabis across provincial borders and consolidate their operations across the country. They can accept credit cards and be listed on the stock market.

It also enables public agencies to support cannabis-related activities. This yields some interesting crossover comparisons:

legalization in canada not flawless. product shortage Initially hindered sales. But once these ease, sales Growing at the rate of store openings. https://www.youtube.com/embed/v26yMNWTxdc?wmode=transparent&start=0 Research shows that legitimate sales go up when supply improves and stores open. Goodman School of Business.

As competition intensifies, prices drop. In Ontario, the current retail price Prices start below $4 per gram ($3 per gram), including taxes. This has weakened many illegal sellers.

Legal Sales Now Rep Most Canadians use. This is a huge shift away from the illicit market.

Political sentiment has also changed. Cannabis was barely mentioned in Canada’s 2019 election campaign. Voters have accepted that marijuana is legal.

Congressional recommendations

Canada illustrates the advantages of full national legalization. However, what works in Canada may not work in the U.S. Congress, and full legalization may not be pursued this year. But it could start to give Americans more of the clarity that Canadians love.

This Safe Banking Act Just the first step in that direction. If passed by the U.S. Senate, it would help cannabis companies get bank accounts, insurance and credit cards. But further steps are needed to allow standard federal tax breaks, stock market listings and interstate shipping.

Congress should also embrace cannabis research. The Department of Veterans Affairs and the DEA should support scientific projects, including research on commercial cannabis products.

Replacing temporary regulations with permanent laws is another priority. Health care shouldn’t depend on an annual ballot scramble. Business continuity should not be delayed Attorney General’s Preference.

Decriminalization, or Schumer eventually defining it, may in itself be better than nothing. However, getting Americans to use marijuana legally, rather than legally buy it, could create more problems than it solves. It will not remove barriers in banking and research.

Cannabis policy isn’t easy — every option comes with trade-offs. Canada is doing it in stages and is now three years ahead in finding the best approach. Congress should also begin this journey.

Michael ArmstrongAssociate Professor of Operations Research, Goodman School of Business, Brock University and Paul SeabornAssistant Professor, Department of Management, Daniels School of Business, University of Virginia

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