Reform in Canada Pretense & Perils

3. A Legal, Government-Regulated, Commercial Cannabis
Industry
3.1 Definition
In a legalized commercial model for recreational use, as exists in state jurisdictions in
the United States, cannabis production and retail are provided by competitors in the
private sector. This is similar to how beverage alcohol is produced and sold. Countries
such as Canada have also used government-controlled retail monopolies or a mix of
private and government-controlled retail outlets for alcohol. In Canada, such a mixed
retail model has also been proposed for legalized recreational cannabis. A not-for-profit
co-operative is another model that has been discussed in the literature. More will be
said of all these models later in this report.
3.2 Introduction
The general consensus is that it is still too early to arrive at conclusions regarding the
impact of a legal recreational cannabis industry on public health and safety from the
early initiatives that are underway in several state jurisdictions within the United States.
It is therefore not possible to predict the impact of the Canadian campaign with any
certainty. Cannabis legalization for recreational purposes in Canada will be an
experiment, and not the controlled kind.
However, this section of Cannabis Law Reform in Canada: Pretense & Perils will
propose likely trajectories for the impact of recreational cannabis legalization in Canada
by drawing upon early indications from research and other developments in the
emerging medical and recreational cannabis regimes. It will also draw from published
accounts of experiences with our long-established legal drug industries for alcohol,
tobacco, and pharmaceuticals. The analysis is organized into five sections:
harm and costs associated with the use of products from legal, governmentregulated,
commercial drug industries
impact of cannabis legalization on the contraband cannabis trade
impact of cannabis legalization on consumer demand, ease of access,
prevalence of use, and associated problems
impact of cannabis legalization on product safety
drug industry conduct and government regulatory effectiveness.
Any drug industry, by the nature of its products, must bear a responsibility for ensuring
the protection of the public’s health and safety. A principal part of the rationale for
having a legal industry for recreational cannabis that is regulated by the government is
to ensure that the industry operates within the legal and ethical bounds required to
provide such protection for consumers. This report reviews the evidence for each of the
alcohol, tobacco, pharmaceutical and cannabis industries addressing:
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