Opinion: Free up the cannabis market

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Removing CBD products from the Cannabis Act would have several immediate benefits for consumers. Read more.

Regulators will have to answer some tough questions regarding Canada’s legalization experiment. As Liberal MP Nathanial Erskine-Smith conceded: “We didn’t get it perfect, or exactly right the first time, and this is an opportunity to make sure we get it right going forward.” One of the core priorities of the expert panel reviewing the act is better understanding how the legal market can stamp out the illegal market, which is still prominent.

First, CBD products, those containing cannabidiol but either no or very little THC, which is what produces the high, should befrom the cannabis act altogether. Products that are not intoxicating and have a significantly lower risk profile shouldn’t be treated the same as cannabis products that include THC.

Removing CBD products from the Cannabis Act would have several immediate benefits for consumers. The first is that it would exempt CBD products from the heavy-handed marketing, branding and plain packaging restrictions set out in the Cannabis Act. Regulating cannabis the same way as tobacco is regulated was a mistake, given the important differences in risks among the various cannabis products. But regulating CBD products like tobacco is downright comical.

On the producer side, removing CBD products from the Cannabis Act would help licensed producers make use of the glut of cannabis that ends up being destroyed as a result of oversupply — an oversupply that fails to lower prices because excise taxes create an artificially high price floor, while the excise tax stamp regime landlocks finished product within provincial boundaries.

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