A liberal party win for Canada is a huge win for the province’s cannabis advocates who are urging legalization sooner rather than later, now that Justin Trudeau and a liberal party majority government will be in place.
Medical marijuana stocks have already begun to surge with speculation that Justin Trudeau’s majority win might pave the way for Canada to legalize recreational marijuana. A move that could transform the country’s pot industry overnight. But while that is extremely exciting news for the licensed producers in the space, it would bring plenty of challenges as well.
The question is when and how Canada will legalize pot? While on the campaign trail, Justin Trudeau said he would get to work “right away” on a policy to legalize and regulate recreational marijuana sales in Canada, with Trudeau’s win as prime minister Tuesday, it remains to be seen how this will happen.
“We don’t yet know exactly what rate we’re going to be taxing it, how we’re going to control it, or whether it will happen in the first months, within the first year, or whether it’s going to take a year or two to kick in,” Trudeau said while campaigning in British Columbia Oct. 1, the CBC reported.
When asked by CBC News for a specific time on the rollout of the policy, Kate Purchase, director of communications for Trudeau’s campaign, said, “We haven’t released a time, we want to get the best ideas from various places and construct a Canadian model.”
During his election campaign, Trudeau made it clear that, if elected, one of his early objectives would be the legalization of marijuana – as long as the drug doesn’t end up in the hands of minors.
Currently, Canadians can only gain legal access to marijuana for medicinal purposes from licensed suppliers in limited circumstances.
“Trudeau’s vow to legalize and regulate marijuana the ‘right way’ has set in motion the single most important catalyst for the marijuana space.” “You look at pretty much every stock in the space. They’re all up on tremendous volume,” said Aaron Salz, an analyst with Dundee Securities Inc., in an interview early Tuesday. “It all has to do with the election.”
With the Liberal majority win, licensed producers are preparing for the likelihood the new government will follow through with their campaign promises and permit recreational access to the drug.
It’s a move that would fuel rapid growth in Canada’s burgeoning cannabis industry.
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