In Switzerland, a law is being drafted to decriminalize cannabis. Legalization has already progressed in some American states and Canada. This steers business away from the black market and into legal channels.
In Switzerland, low-THC hemp has not been an intoxicant since 2011. This market has now established itself.
After a long standstill, the question of whether the ban on cannabis should be lifted is starting to move. 2021 the responsible commissions in the National Council and in the Council of States agreed that a regulated market should be created for the cultivation, production, trade and consumption of cannabis.
Current status
However, both councils still have to decide on the parliamentary initiative. Meanwhile, the Federal Office of Public Health has approved the first pilot tests by cities. In Basel, for example, around 400 people have been able to legally obtain cannabis for personal use from pharmacies since this summer. The pilot test will run for two and a half years.
In Switzerland there are around 220,000 people who consume cannabis at least once a month. Every third adult is said to have already made acquaintance with marijuana, hashish or “space cakes”. According to a July poll In 2021, two-thirds of Swiss agree to legalization. At the same time, they are against laisser-faire: two out of three demand rules that are at least as strict as those for alcohol.
The parliamentary initiative goes in this direction. It is based on the recommendations of Federal Commission for Addiction Issues: The focus is therefore on the protection of minors. In addition, production and quality are to be controlled, goods are to be taxed and advertising restricted.
They rely on local products that are to be sold in special shops – also to slow down “multinational corporations”. Nevertheless, even such a “regulated” version would be a small revolution compared to today: Cannabis is still banned in Switzerland and inconsistent rules apply. Possession of up to 10 grams is no longer punishable, but consumption of a joint is.
But marijuana is already a business: According to a study from the canton of Vaud extrapolated to Switzerland, annual sales of illegal cannabis should amount to around CHF 500 million – making it the second most important intoxicant in Switzerland after cocaine.
Cannabis legalization in each country
The question of legalization is not only of concern to Switzerland. The traffic light coalition of Social Democrats, Greens and the FDP is also planning steps towards decriminalization in Germany, although a draft law is still a long way off. In October, the Minister of Health, Karl Lauterbach, presented the benchmarks for legalization: the purchase and possession of a maximum amount of 20 to 30 grams should be exempt from punishment for adults. Numerous cannabis products could be legally purchased in the future; for the time being, however, no edible products such as hemp biscuits. The first German cannabis entrepreneurs have meanwhile already positioned themselves.
Switzerland has committed itself to an “evidence-based” approach. Cities like Basel, Bern, Lausanne, St. Gallen or Zurich want to start pilot projects thanks to an experimental article that was adopted last year. Stakeholders even left their mark on the pilot trials: farmer representatives had it written into the law that the cannabis used in the trials should be of Swiss origin and comply with the rules of Swiss organic farming.
Such pilot tests are certainly not wrong in order to take away the fear of an opening from the citizens. A look abroad also provides clues as to what will happen in the event of legalization. Washington and Colorado were the first to legalize cannabis in late 2012, but now there are 14 US states plus the capital area. Individual conservative states that clearly voted for Donald Trump in the presidential elections, such as South Dakota and Montana, have also joined the movement.
USA: Legalization brings price differentiation
What are the experiences from the USA? According to Overview of the Cato Institute Although prices in various countries initially fell by around a fifth, they quickly stabilized and then picked up again somewhat. The price differences between the member states have also decreased. This suggests that the black market has been pushed back and trade has shifted to legal channels. The authorized retailers can even ask for a price surcharge for the improved transparency.
Since legalization, there has also been greater price and product differentiation. In stores, the price gap between high quality and medium quality marijuana («weed») has increased. On the black markets, on the other hand, buyers do not have a good overview because they can hardly judge the quality.
In your Evaluation of the experiences from the USA The Addiction Switzerland Foundation comes to the conclusion that there does not seem to have been an increase in consumption among minors, but that this is the case among young adults. The Cato study, on the other hand, sees no clear effect. On the positive side, the black market tends to decline sharply. In Canada, which legalized the sale of cannabis in 2018, say according to the statistical office two-thirds of consumers now say that they obtain cannabis from legal sources.
Switzerland: experience with CBD cannabis
But you don’t have to look far, Switzerland also provides clues as to what could happen after general legalization. Cannabis with a very low THC content of less than 1% is not considered an intoxicant. THC or tetrahydrocannabinol is the main psychoactive substance that gets you high and when consumed frequently can lead to a reduction in memory performance.
A market for CBD cannabis has been established in Switzerland since 2016. CBD stands for cannabidiol, which has no potential for addiction and is said to have a relaxing effect. Since then, a market with a large number of providers and a large variety of products has developed rapidly in Switzerland, writes the Federal Commission for Addiction Issues. While the market initially developed rapidly, the boom is over now.
In addition to protecting young people, eliminating the black market is also the central goal of legalization: The Commission explains that products on the black market can be contaminated or have very high THC concentrations, which can have undesirable side effects. For example, high THC levels can trigger psychosis in susceptible individuals. Legalization improved transparency here.
Uruguay: Register of Cannabis Users
International experiences also reveal conflicting goals. In any case, high taxes and strict regulation are likely to result in the black market drying up only to a limited extent. In Uruguay, consumers have to be entered in a register, which is unlikely to encourage participation in the heavily regulated market.
It is clear that adults can exercise their consumer sovereignty better in legal markets than in illegal ones. The notorious alcohol prohibition in the USA had to be lifted again in 1933 after thirteen years. While marijuana has remained banned in some states for around a hundred years, the movement towards legalization is now in full swing. The realization is gaining ground: bans do not protect people from drugs, especially in the internet age.