Canada’s Cannabis Industry Lobbies For Economic Aid Due To Virus Fallout
The coronavirus is wreaking havoc on the global economy, and the cannabis industry is no exception. Some states in the U.S. have designated the cannabis industry to be ‘essential’ however, that is more of the exception than it is the rule.
Economic stimulus packages are being proposed all over the world, including in Canada, to help industries weather the storm. Members of the cannabis industry in Canada are lobbying to be part of any national aid package. Per Bloomberg:
Canada’s cannabis industry is lobbying the government to be included in Ottawa’s $82-billion economic aid package for businesses impacted by the COVID-19 pandemic.
More than 70 cannabis industry professionals, ranging from producers to retailers to consultants, signed a letter sent to Industry Minister Navdeep Bains and Finance Minister Bill Morneau requesting the government provide the legal pot sector “immediate measures to receive economic stimulus.”
“Canada’s cannabis industry has weathered several shocks in the past six months, including the loss of over 2,000 well-paying jobs in the sector. Our access to capital, including credit, is challenging,” according to the letter obtained by BNN Bloomberg.
Access to capital is particularly problematic for cannabis businesses, and not just in Canada. Investment money was flooding into the industry for a time, however, that has changed recently. Reliable access to credit has always been an issue for the cannabis industry. If the cannabis industry is to survive in Canada, it will likely need some help in doing so.
A similar effort is underway in the United States where members of the cannabis industry are lobbying lawmakers to include the cannabis industry in any future stimulus packages.
Some cannabis companies continue to do well in the U.S. despite the economic issues caused by the virus response, however, there are plenty of others that are struggling, and even those that are continuing to succeed may be unable to continue to do so because of all of the uncertainty surrounding the larger economy.