Israel: medical cannabis exports reauthorized

Suspended in February 2018 considered by the government to be poorly regulated, Israeli medical cannabis exports are once again authorized. They are subject to regulations set out in a new law which has been carefully examined by Knesset committees and various ministries. This law has been definitively approved by the Knesset in early January and was approved yesterday by the ministerial cabinet. After a year's wait, the Israeli medical cannabis industry was delighted with the news.

A promising future

Israel is recognized worldwide as a pioneer in the cannabis industry, This is particularly true in terms of cultivation and extraction technologies. This leading position is confirmed every year by the Cannatech in Tel Aviv. This advantage could bring Israel significant benefits in the global cannabis market. According to Forbes, Many countries, including Australia, Germany, Austria and Mexico, are already interested in doing business with Israel.

«In Israel alone, we expect sales in excess of $1 billion to countries interested in our products,» explains Saul Kaye, CEO of iCAN, an Israeli medical cannabis company. «Israel is perfectly positioned to penetrate and disrupt the medical cannabis market, which is estimated to be worth $33 billion worldwide within five years. The share prices of cannabis producers listed on the Tel Aviv Stock Exchange soared after the announcement of the government's agreement.

The prospect of attracting foreign investment and generating substantial tax revenues was also a key element in the recommendation of the interministerial committee the Ministries of Health and Finance. It was on the basis of this recommendation that the Israeli government had first authorized exports in 2017. The committee had estimated that the state could earn more than a billion dollars in export taxes.

«I have always supported Israeli medical cannabis exports and I am delighted with the government's approval.» says Moshe Kahlon,Minister of Finance. «Exports of medical cannabis will give the State of Israel a huge advantage in connecting Research and Development with agriculture and the cannabis industry, they will bring in significant foreign currency revenues and maximize the advantages that the State of Israel has on the production chain».

Under the new law, cannabis producers will obtain their license from the Ministry of Health (subject to police approval). There are already eight medical cannabis producers operating in Israel, as well as other ancillary businesses involved in the processing, marketing and distribution of medical cannabis. Numerous farmers have already applied for cultivation licenses, and their applications should soon be considered. Agriculture Minister Uri Ariel said the export approval was «a historic message to Israel's farmers, young farmers, patients and the Israeli economy».