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Новости/Аналитика

Competitive mechanisms used in the medical cannabis market

14.07.2020

Lobbyists of the interests of foreign companies, who are trying to impose on our state favorable provisions for the import of hemp raw materials into the current legislation, lay in it exactly the same contradictions as in the regulatory legal acts of Germany, Latin America, after the adoption of which national hemp growers will have to defend their right for years in the courts of various instances to do what the government encourages in Canada, Israel, Holland, Great Britain, and some other countries. 

On the pages of the specialized electronic edition of Ukrainian cannabis growers, the mechanisms of lobbying by Canadian medical cannabis producers of their interests in Latin America and Europe have already been described. “Whoever got up first, that and the slippers” - this proverb most clearly demonstrates the algorithm already applied in Germany, when Canadian producers of legal psychoactive cannabis, by filing lawsuits in court, block the entry of national cannabis growers into the extremely profitable market. We will consider below how the experience of our Canadian colleagues is used to create competitive advantages in the struggle for consumers in the United States.

Five Arkansas companies that have already received licenses to grow medical cannabis are filing a lawsuit to stop the use of three more licenses for companies that plan to do the above activities in the state. The lawsuit alleges that the three licenses, which were authorized in June, contradict the language of the state regulation that stipulates that approvals will be granted to new companies in the medical cannabis market only when existing growers cannot meet demand for raw materials used in dispensary services related to the use of hemp in the medical field.

The Bold Team, Natural State Medicalals, Natural State Wellness Enterprises, Osage Creek, and Delta Medical Cannabis file a class action lawsuit against:

•  Arkansas Department of Finance and Administration;

•  State Alcohol Control Department;

• the  medical cannabis commission;

•  “Carpenter Farms Medical Group”, “New Day Cultivation” and “River Valley Relief Cultivation” (companies that received new licenses),

demanding to declare illegal the issuance of permits to the aforementioned firms and prohibit Carpenter Farms Medical Group, New Day Cultivation and River Valley Relief Cultivation from carrying out any work related to the state's medical cannabis market.

Commentary of experts of the Association "Ukrainian technical hemp"

Arkansas is permitted by the state regulator to issue up to eight licenses to businesses in Arkansas under the 2016 law regulating the legalization of medical cannabis use in Arkansas. By using essentially contradictory regulatory language that would only grant permits to new companies when existing growers cannot meet demand, existing licensees are blocking three more companies from entering the state's highly liquid medical cannabis market. Absolutely similar mechanisms for blocking the possibility of entering the German medical cannabis market for the country's national producers are used by Canadian companies, which, in fact, since 2017, through ongoing litigation, have prevented local producers from legally growing medical cannabis in the country, despite the fact that this is provided for by the regulatory legal the base of the "homeland of sausages and beer". Similar algorithms for blocking the substitution of raw materials and products in the medical hemp market with national raw materials are actively used by Canadian companies in Latin America.

Ukraine is no different from the above countries. Lobbyists of the interests of foreign companies, who are trying to impose on our state favorable provisions for the import of hemp raw materials into the current legislation, lay in it exactly the same contradictions as in the regulatory legal acts of Germany, Latin America, after the adoption of which national hemp growers will have to defend their right for years in the courts of various instances to do what the government encourages in Canada, Israel, Holland, Great Britain, and some other countries.

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13.10.2020

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