Netherlands Set to Fully Legalize Cannabis

For five decades, the official policy of the Netherlands has allowed the sale of small amounts of marijuana in so-called coffee shops. However, possession of more than 5 grams of marijuana was illegal, as was its commercial cultivation. However, starting in mid-December, three companies will be allowed to legally grow cannabis within the country and supply it to coffee shops, Bloomberg reports.

Currently, the shadow cannabis market in the Netherlands is worth €1.3 billion a year. Analysts predict that in the first year, the legalised turnover could reach 158 million euros, and the Netherlands will become one of the largest legal cannabis markets in Europe, with a turnover of more than 250 million euros by 2027.

The first phase of the project will start on a limited scale: three producers - CanAdelaar, Fyta and Aardachtig - will supply cannabis to coffee shops in Breda and Tilburg. The pilot project is expected to expand to nine cities, including the eastern part of Amsterdam, at the end of the first quarter of 2024. Coffee shop owners will be able to purchase products only from legal producers. Within four years, the government plans to evaluate the results of the experiment and determine whether official changes to cannabis legislation are necessary.

The Dutch Minister of Health, Ernst Koijpers, says that the goal of the pilot project is to create a closed system that "controls the entire path from cultivation to the end user". At the same time, the government will study the impact on the illegal market and crime rates, as well as the public health impact of cannabis consumption.

The Minister compares the Dutch approach to that of Canada, where there is licensed commercial cultivation and regulations for home cultivation for personal use.
Since legalisation in 2018, Canada has not seen a significant increase in cannabis consumption. In the first three years, cannabis brought 43.5 billion Canadian dollars (31.6 billion US dollars) to Canada's gross domestic product and 15.1 billion Canadian dollars (10.94 billion US dollars) to the state treasury.

As a reminder, the German cabinet has approved a bill aimed at legalising the recreational use and cultivation of marijuana. It will allow adults to possess up to 25 grams of the substance, grow a maximum of three plants, or buy cannabis in cannabis clubs. The proposed law, considered one of the most liberal cannabis laws in Europe, could potentially be a catalyst for a similar global trend.

In Ukraine, in July 2023, the parliament approved a bill to legalise medical cannabis in the first reading. Medical cannabis will be grown only indoors under video surveillance, and the National Police and the Ministry of Health will strictly control it. It can be prescribed to patients with cancer, PTSD, Parkinson's and Alzheimer's diseases.