Canadian cannabis companies have long had a huge advantage over their counterparts in the United States, with access to capital and favorable federally policies (access to banking services, reasonable tax policies, etc.). That upper hand will only grow bigger now that Canada has legalized cannabis commerce among all adults. One U.S. cannabis company just put out an ad in the Wall Street Journal urging Donald Trump to take action, as the Coast Mountain News reported:
An American cannabis producer is warning President Donald Trump that Canada is poised to dominate the North American marijuana industry unless the United States takes steps to eliminate barriers to financing and market capital south of the border.
A full-page ad in Tuesday’s Wall Street Journal, framed as a plea to the White House and its most prominent occupant, warns the U.S. is “rapidly losing” its competitive advantage to Canada, where recreational pot becomes legal at midnight.
“The cannabis industry is legal in 31 states, yet most domestic companies do not have access to traditional banking or institutional financing,” reads the ad, signed by Derek Peterson, the chairman and CEO of California-based Terra Tech Corp.
According to Marijuana Business Daily, the ad in the Wall Street Journal is just a part of a bigger campaign to appeal to Trump:
Peterson said the ad is part of a media campaign he’s launching on the issue that will include television commercials, with spots targeted for the Fox & Friends show on the Fox News Channel – a network known for its conservative audience and coverage.
“We’re putting our own skin in the game, because the risks are very real for U.S. operators,” he said.
“Unless something changes, we are not going to be able to compete against companies that can go out and raise $500 million or more at a time. We barely have access to checking accounts right now.”
For a president that likes to be “the best” at everything and surrounded by “the best people,” we can only hope that he will help the United States have the best cannabis industry possible, regardless of how the midterms turn out. Democratic Congressman Earl Blumenauer (who has spoken at a couple of International Cannabis Business Conference events) has recently released his blueprint for legalization in the next Congress. Hopefully, legalizing more freedom, jobs, and revenue by ending cannabis prohibition will prove to be a bipartisan issue and we can make U.S. cannabis great again. (No offense, Canada, thanks for helping lead the way.)
Don’t miss the latest political and business news regarding the cannabis industry at the next International Cannabis Business Conference in San Francisco on February 7-8, 2019. Purchase your early bird tickets by January 18th to save!