The Impact of the Cannabis Act in Canada

Canada's vision of cannabis is currently evolving. The relationship between Canadian citizens and hemp is growing, with the market introducing more and more new product forms. The country should then expect to see drastic changes in purchasing behavior and consumption.

A National Cannabis Survey notably highlighted that Canadians' cannabis consumption varied before the adoption of the Act and has continued to vary since. For example, more and more citizens have started trying cannabis since the legislation. In addition, according to surveys, people who tried cannabis for the first time after the legislation are mainly older people (45 years and over).

The National Survey also showed that the number of Canadians obtaining cannabis on the black market or through contacts decreased significantly after the legislation.

The Cannabis Act in Canada: the opinions of the different parties

Bill C-45 on cannabis was implemented in 2018. Its purpose is to frame and regulate the Canadian cannabis market. Therefore, this legislation aims to keep cannabis out of the hands of young people, prevent criminal organizations from making profits and protect public health and safety by facilitating access to legal cannabis for adults.

Opinions of parties in favor of the legislation

Therefore, in 2018, different political parties began numerous discussions regarding this bill. Those in favor put forward as arguments the rapid increase in state revenue generated by this new market, while preventing criminal organizations from making profits. According to a Statistics Canada study, in 2017, approximately $5.7 billion was spent in the cannabis market.

Additionally, regulating hemp would allow authorities and the government to more closely monitor its circulation. This would then guarantee a better quality product to consumers.

Opinions of the parties against the legislation

On the other hand, those who were against the project first denounced the risk of an increase in addiction problems that legalization of cannabis could cause. They also discussed the impacts of cannabis consumption on a developing individual's brain, because the legislation could trivialize and make consumption more accessible to younger people.

The Cannabis Act in Canada: a fruitful market for the economy

The Cannabis Act clearly states that the management, design, distribution and sale of cannabis will be entirely under the authority of Canadian provinces and territories through private companies. They are therefore responsible for determining the legal age, the possession limit, the regulations concerning home cultivation and the places where consumption is authorized.

As parties in favor of the legalization of cannabis have argued, the hemp industry has remarkable economic potential in Canada. It is in particular thanks to three types of revenue that governments have managed to raise a good amount of money: provincial sales tax, federal sales tax and federal excise tax. According to a 2021 report from the firm Deloitte Canada, the cannabis market has allowed the Canadian state to raise more than $11 billion in sales. Not to mention the increase in Canadian GDP to more than $43.5 billion. In addition, approximately 98,000 new jobs were created in Canada thanks to this new sector.

Thus, considering the benefits that the legalization of cannabis has generated on a socio-economic level in Canada, it will be interesting to consider a possible legalization of other substances in the same category.

The Cannabis Act in Canada: what is legal as of October 17, 2018

Subject to restrictions established by Canadian provinces and territories, individuals aged 18 or over have the legal right to:

• Possess in public a maximum of 30 g of legal dried or undried cannabis;
• Share a maximum of 30 g of legal cannabis with other adults;
• Obtain dried or fresh cannabis and cannabis oil from a retailer subject to provincial regulations;
• Obtain dried or fresh cannabis and cannabis oil online from a producer authorized by the federal government if no regulatory framework has yet been established in their province or territory;
• Cultivate for personal use a maximum of four cannabis plants per residence from seeds or seedlings from an authorized source;
• Manufacture cannabis products at home (food, drinks).

Since 2019, the sale of cannabis edibles and concentrates has been legal.

Possession limits for cannabis products

The Cannabis Act has established some possession limits for cannabis products. These limits vary depending on the dried cannabis. The limits of other cannabis products are then based on dried cannabis to determine their possession limit.

1 g of dried cannabis is equivalent to:

• 1 cannabis seed.
• 0.25 g of concentrate;
• 5 g of fresh cannabis;
• 15 g of edible product;
• 70 g of liquid product;

Cannabis for medical purposes

The current cannabis for medical purposes program is maintained to allow citizens who have obtained authorization from their healthcare professional to have access to cannabis for treatment.

The Cannabis Act in Canada: reducing criminal activities

According to Statistics Canada, nearly 48,000 cannabis offenses were reported to authorities in 2017. Approximately 80 % of these offenses were related to the illegal possession of cannabis. Having a criminal record following a cannabis offense can have drastic and permanent consequences for the person concerned.

By allowing legal cannabis for adults, the Canadian government aims to keep citizens who use hemp out of the criminal justice system. This then allows the courts to be relieved of a heavy burden.

Criminal sanctions

Cannabis offenses target individuals who do not respect the legal framework, in particular individuals with links to criminal organizations. Sanctions are established according to the seriousness of the offense. They range from issuing a warning or ticket for minor infractions, to criminal prosecution and imprisonment for more serious infractions. Certain offenses specifically target individuals who sell cannabis to minors.

Penalties relating to driving while impaired by cannabis are also included in the proposed Cannabis Act. These penalties are also valid for driving while impaired by other drugs such as: LSD, heroin, cocaine and psilocybin.