Pubdate: Thu, 08 Nov 2012
Source: Globe and Mail (Canada)
Copyright: 2012 The Globe and Mail Company
Contact:  http://www.theglobeandmail.com/
Details: http://www.mapinc.org/media/168
Author: Sunny Dhillon

U.S. MARIJUANA VOTE THREATENS TO NIP B.C. MARKET IN THE BUD

Seattle - British Columbia's multibillion-dollar marijuana industry
could take a "significant" blow now that two U.S. states -- including
its closest neighbour to the south -- have voted to legalize marijuana.

The political consequences of the Washington State and Colorado
referendums remain to be seen. In Seattle, advocates hailed the vote
as a major breakthrough after decades of effort, although the U.S.
Department of Justice could still intervene. In Canada, marijuana
opponents proclaimed the beginning of the end for Ottawa's drug
policies -- a view the federal Justice Ministry was quick to reject.

What does not appear to be in dispute, however, is that growers of
B.C. bud are about to see some of their profit go up in smoke once
legal retailers of marijuana open in Washington State.

"The outcome of these votes in Washington State and Colorado is going
to be a significant factor for this industry here in British
Columbia," Werner Antweiler, a professor at the University of B.C.'s
Sauder School of Business, said in an interview Wednesday.

Estimates vary on the worth of the B.C. marijuana industry; assessing
an under-the-table market isn't easy. A government report released
nearly a decade ago pegged the value at about $6-billion. Prof.
Antweiler said between $6-billion and $8-billion is "realistic," and
that B.C. is responsible for about 60 per cent of Canada's marijuana
output.

He said other markets for B.C. bud will, of course, remain. But while
the industry won't vanish, the loss of Washington State in particular
will be felt.

Geoff Plant, B.C.'s former attorney-general, told The Globe and Mail
last month that he believed legalization in Washington State would
affect B.C.'s marijuana industry but that the effect would not be
"transformational."

The Washington referendum, known as Initiative 502, was spearheaded by
the group New Approach Washington. It argued that treating marijuana
use as a crime had failed and it was time to try something else. Among
the initiative's sponsors was law professor and former U.S. attorney
John McKay -- also known as the man who prosecuted Canada's "Prince of
Pot," Marc Emery.

Mr. Emery remains behind bars, but the marijuana activist's wife,
Jodie, travelled to New Approach headquarters in Seattle to watch the
results. She said a loud cheer went up inside the beige, four-storey
building when the victory was announced.

"For us to know that the state that indicted [my husband] and
extradited him legalized it -- first in the nation, here in Washington
- -- that's just really profound for us and we're so thrilled about it,"
Ms. Emery said in an interview. She added: "This is uncharted territory."

Evan Wood, a researcher at the B.C. Centre for Excellence in HIV/AIDS
and a member of Stop the Violence BC, a coalition calling for changes
to Canada's drug policies, said the votes mark "the start of the house
of cards coming down with respect to Canada's prohibition."

Dr. Wood stressed he's not "pro-drug." But he said prohibition has
created circumstances where marijuana is more easily available to
young people than alcohol and tobacco. He also pointed to
public-safety concerns.

"In my perspective -- and I think this is a widely held scientific
perspective -- all of the grow-ops and home invasions and hydro thefts
and organized crime concerns we have in B.C. are a natural consequence
of marijuana prohibition," he said.

But if the votes had any impact on the Canadian government's view, it
wasn't apparent Wednesday. Julie Di Mambro, press secretary for
federal Justice Minister Rob Nicholson, wrote in an e-mail: "Our
government does not support the decriminalization or the legalization
of marijuana."

Tonia Winchester, New Approach Washington's outreach director, said in
an interview that the initiative will take effect on Dec. 6. On that
date, people aged 21 and older will be allowed to possess one ounce of
marijuana.

She said a year-long rule-making process -- which will include the
liquor control board and other officials -- will begin Dec. 1. Farmers
will need a licence to grow marijuana, and their product will be sold
in standalone stores. A 25-per-cent sales tax will be applied, with 40
per cent of revenues heading to state and local budgets. The remainder
of the revenue will go to substance-abuse prevention and research. The
state will also establish a standard for driving under the influence
of marijuana.

Ms. Winchester said "in all likelihood we probably won't see retail
stores operating until end of 2013, even 2014." He said there have
been indications the Department of Justice is willing to have an open
dialogue about the legalization plan. She said her group has not heard
from the department directly since the referendum.
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