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Wednesday, Jun 12, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Canada

Israel launches ‘anti-dumping’ probe into Canada’s cannabis companies

Canada’s cannabis exports at risk due to Israel’s dumping investigation

Legal Recreational Cannabis Purchase in Canada. Via Wikipedia commons
Legal recreational cannabis purchase in Canada. Via Wikipedia commons

Canada, a global player in the medical cannabis industry, faces scrutiny as Israel initiates an “anti-dumping” probe into Canadian cannabis companies. This investigation raises concerns about the impact on Canada’s cannabis exports, particularly to Israel, a significant market.

The commissioner of Israel’s Trade Levies Unit  identified a correlation between Canadian imports and adverse effects on the local cannabis industry. Additionally, this move could potentially restrict Canadian cannabis exports to Israel, posing significant challenges to the export sector.

With Israel currently representing over a third of Canada’s cannabis exports by weight, any restrictions imposed could have far-reaching consequences. In the fiscal year 2023 alone, Israel imported approximately 21 metric tons of cannabis from Canada for commercial and scientific purposes. Moreover, this investigation threatens to disrupt Canada’s fragile cannabis export industry, necessitating careful examination and response.

Michael Mancini, chief commercial counselor for the Embassy of Canada in Israel, confirmed the initiation of the anti-dumping investigation. Mancini emphasized the importance of gathering comprehensive information and evidence from all interested parties. This is extremely important to determine the existence of dumping practices and associated damages accurately, he said.

As part of the investigation, ten Canadian cannabis companies, including major players like Canopy Growth Corp. (TSX: WEED) (NASDAQ: CGC) and Tilray Canada (TLR: Y.TO) (NASDAQ: TLRY), have been named. Israeli authorities have given these companies a 30-day window to provide pertinent information, evidence, and arguments addressing the allegations.

Tilray, one of the companies implicated, responded by acknowledging receipt of the inquiry. They asserted compliance with all applicable laws and emphasized their shipments to Israel originating solely from their Portugal facility.

Read more: High Tide opens up shop in Fort McMurray, expects steady revenue from oil sands workers

Read more: Brothers cleared of human trafficking charges in cannabis farm case

Navigating global cannabis trade: Canada’s compliance challenges

If provisional measures are imposed, they won’t take effect until at least 60 days post-investigation initiation. Israel’s probe adds to international concerns regarding Canada’s cannabis import-export practices. Countries like Australia, Colombia, and Jamaica have previously raised objections. They have cited protectionist measures by Canada affecting their respective cannabis industries.

Furthermore, Health Canada, which is responsible for regulating cannabis imports and exports, emphasized its stringent controls over international cannabis movements for medical and scientific purposes. Canada adheres to international drug control conventions and permits cannabis trade only with countries having a legal framework for medical or scientific cannabis use, the organization asserts.

As Canada navigates these challenges, ensuring compliance with international regulations and addressing concerns raised by importing countries becomes imperative for sustaining its position in the global cannabis market.

 

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