How the Federal Legalization of Weed in Canada Affects the U.S.

How the Federal Legalization of Weed in Canada Affects the U.S.

How the Federal Legalization of Weed in Canada Affects the U.S.

Recreational marijuana became legal in Canada back in October. So how is the federal legalization of weed going to affect the United States?

On October 17, 2018, you could have been forgiven for thinking things looked hazy at the 49th parallel. Canada became just the second country in the world to legalize recreational marijuana.

Many south of the border followed the process of federal legalization of weed in Canada. The process wasn't easy. In fact, by making weed legal, Canada is actually breaking several international laws.

Now that weed is legal, Americans are asking what the changes in the Great White North could mean for them.

In this article, we'll take a look at a few of the changes. Some of them are happening already. Others will take more time to come to pass.

Federal Legalization of Weed Has Sparked a New Yukon Gold Rush

One of the most notable effects of Canada's new pot laws has been excitement among investors. Many Canadian companies are listed on the stock exchange. Before the Cannabis Act came into effect, investors were scrambling to get in.

In fact, there's something of a "marijuana bubble" on the stock market right now. Investors aren't limiting their stock purchases to Canadian weed companies. They have been some of the most popular marijuana stocks in the past few months.

American marijuana companies have started moving north of the border. Federal legalization has made it easier to conduct research. Investors in American companies have been looking to cut their losses.

Canadian Companies Seek International Markets

The recreational marijuana market in Canada is currently seeing a supply shortage. Retailers can't keep products on the shelves, and producers haven't been able to make enough to meet demand.

Experts are predicting a reversal of the problem. They expect supply to exceed demand in Canada within the next few months. Canadian companies with too much product on hand will look to international markets.

One of the prime markets for Canadian weed exports will eventually be the United States. Under current federal law, marijuana is illegal. Several states have defied the federal ban and legalized weed themselves.

This has created a growing market of recreational users in the U.S. Importing products isn't legal, but the black market trade with Canada has existed for years. Growing American markets will strengthen these existing trade relations.

Companies and Politicians Will Call for Legalization

We saw this happening ahead of Canada legalization news, but the trend has continued. More companies and politicians in America support legalizing marijuana.

Colorado and Washington were first to defy the federal ban on cannabis. Most recently, New Jersey pushed the debate forward in their legislature.

A list of states that have legalized or are considering legal weed includes:

  • Alaska
  • Oregon
  • Maine
  • Nevada
  • Vermont
  • California
  • Oklahoma
  • Michigan
  • Utah

Washington, D.C., also decriminalized the use of pot. It's clear the American people want their governments to consider legalization.

Companies are getting on board with these initiatives as well. Many American investors are concerned Canadian cannabis companies will soon dominate the market. American weed companies are already headed north of the border.

It's Going to be More Difficult to Travel to Canada

American teens living near the border often cross to take advantage of the lower legal drinking age. The same sort of "pleasure trips" are going to become more popular among American pot users.

Unfortunately, Canada's legal weed is going to make it more difficult to get over the border.

After the Canadian cannabis news in June, U.S. border agents tightened up security. Any Canadian who has ever used pot can be denied entry into the United States. Canadians can be detained or turned away.

This applied to Canadians working in the marijuana industry. Americans heading north to work for a cannabis company could also face trouble at the border.

Americans traveling to Canada for pleasure may also find they face tougher questions. More vehicle searches may also be conducted.

It Will Become Easier to Buy Weed

The patchwork of laws in various US states has left buyers with many questions. One of the most common is about where to buy legal weed.

Black market trade between Canada and the United States has existed for years. With Canadian legalization, enterprising folks on both sides of the border see opportunity. Canadians and Americans alike will try to smuggle legal Canadian weed into the U.S. black market.

Of course, this is illegal. So is purchasing marijuana on the black market. American users should look for state-authorized dispensaries when they want to buy weed.

Another effect of the influx of Canadian weed will be lower prices. As supply grows, prices will drop.

Eventually, we might see American federal legalization. At that point, Canadian products could make their way to American consumers.

A Culture Shift is Coming

Canada's federal legalization of weed points to a shift in social attitudes about weed. It's something mirrored in America, but states and the federal government have been slower to act. With legalization in Canada, cultural attitudes around pot are going to keep changing.

Canadian legalization will normalize the use of weed north of the border. Those attitudes will soon be visible in the U.S. as well. Canadian media will likely portray the use of marijuana quite differently, and American media may soon follow suit.

The law will follow as the American people demand access to legalized weed in their own country. American marijuana advocates are already pointing to Canada as an example of how to proceed.

Preparing for Legal Weed in the U.S.

People on both sides of the border are already noticing changes after the federal legalization of weed. It's a matter of time before the American government shifts pot policies in the same direction.

In the meantime, the U.S. has a lot to learn about how to legalize weed. Canada also provides many good example about what not to do.

If you have weed questions, we have answers. Check out our blog for more about what changing laws mean for you.

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