Colombia Considers Permitting Hashish Imports: Consultants Say It Makes No Sense

By Javier Hasse through El Planteo

The discharge of a draft decision by the Colombian Agricultural Institute (ICA) relating to phytosanitary necessities for importing dried hashish flower from Canada has raised alarms within the trade. Whereas this isn’t but a remaining determination, enterprise leaders and trade consultants warn of the potential destructive results on nationwide manufacturing.

Lucas Nosiglia, a hashish trade skilled with in depth expertise within the Colombian market, sums it up clearly: “Defining phytosanitary necessities doesn’t imply that hashish has already been imported from Canada… It implies that ICA has decided what necessities are vital for this to occur.”

Nevertheless, he provides that the transfer makes neither financial nor political sense: “Colombia has the capability to supply top-quality hashish flower at way more aggressive prices than Canada.”

The Downside Of Canadian Oversupply

The foundation of this subject is evident: Canada is producing extra hashish than it might promote. After the legalization increase, corporations grew quickly, producing an oversupply that they’re now trying to offload in rising markets. Nosiglia explains: “Canada might have an curiosity in exporting as a result of they produce greater than they promote—that is the aftermath of the trade increase the place corporations expanded past what was vital.”

In response to a report by MJBizDaily, since 2018, Canada has destroyed practically 1,700 tons of hashish on account of an absence of demand. Overproduction has been a persistent drawback, with rules limiting the industrial distribution of enormous volumes of dried flower.

Moreover, the Canadian market is dealing with a big stock surplus. By mid-2024, Well being Canada reported that roughly 36 million items of dried flower remained unsold, reflecting the difficulties of promoting the product inside its personal borders.

And here is the important thing level: in a market already oversaturated, with hashish piling up in warehouses, the potential for Colombia accepting imported flower appears, on the very least, unusual—like “promoting sand within the desert.”

A Blow To Colombian Producers

For native companies, permitting hashish imports could be a significant setback. Colombia already produces high-quality hashish however faces boundaries to exporting it, whereas inside rules nonetheless stop the sale of dried flower within the medicinal market. Nosiglia is blunt: “Politically… it might be an enormous mistake and an insult to native entrepreneurs who’ve struggled for years with a very regulated export mannequin and a particularly restricted home market.”

El Planteo obtained a letter from legal professional Efraín López, director of Árpez Firm and former Ministry of Justice official, addressed to the Colombian authorities. In it, he warns concerning the lack of commerce reciprocity with Canada: “Canada doesn’t permit the import of hashish for medical or industrial functions from Colombia, so why would we permit it to enter our market?”

López additionally emphasizes that permitting hashish imports from Canada would have a devastating financial affect on the nationwide trade. His letter notes that Colombian producers have invested in worldwide certifications to export dried flower to demanding markets like Germany, Australia and Israel, the place wholesale costs vary from $13 to $27 per gram. Nevertheless, Canadian hashish—priced considerably decrease on account of oversupply—might displace native producers.

Value Variations And The Danger Of Dumping

The difficulty can be financial. In response to Statista, in August 2021, the typical value of 1 gram of medical hashish in Canadian dispensaries was CA$12.34 (roughly $9.87 at that 12 months’s change fee). In distinction, in worldwide markets like Australia and Brazil—the place Colombia exports medical hashish—costs are a lot increased, reaching as much as $27 per gram, based on López’s evaluation.

The priority goes additional. In 2024, Israel launched an investigation into dumping by Canadian corporations, accusing them of promoting hashish at artificially low costs to monopolize the market. In response to López, this observe might negatively affect Colombian producers: “The industrial threat of importing hashish from Canada to Colombia would enhance considerably.”

The Future Of Colombia’s Hashish Market

In the meantime, President Gustavo Petro’s authorities continues to push for the event of the hashish trade, and the controversy over adult-use legalization stays unresolved in Congress. Within the meantime, the nationwide sector continues to face regulatory hurdles that hinder its progress.

However here is the massive query: if Colombia already has high-quality hashish with worldwide certifications and large export potential, why have not higher situations been created for native producers? The ultimate determination on importing dried flower from Canada has but to be made, however the message from trade leaders is evident: Colombia does not want overseas hashish—it wants higher situations to promote what it already produces.

Lead picture through Shutterstock

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