Israeli Parliament approves export of medical cannabis

First and foremost authorized then suspended by Prime Minister Benjamin Netanyahu, who was concerned about the risk of leakage to the local black market, Israeli medical cannabis exports were due to resume as early as last April. However, the Prime Minister vetoed the project, convening a specialized committee to draw up the necessary regulations and to approve the bill. propose a law to the Knesset, the Israeli Parliament. The bill was approved on Tuesday December 25, 218 in its second and third readings, and all that's missing is the government cabinet's approval for medical cannabis exports to resume.

The future of Israel's medical cannabis market

Without the Prime Minister's veto, there's a good chance the law will finally pass. The only official opposition came from Interior Minister Gilad Erdan, but he announced his support for the initiative after the Knesset's approval. The other ministries concerned had already expressed their support. These include Health, Agriculture and Rural Development, Justice, Finance and Social Equality. Presumably, the law will therefore be approved by the government cabinet. All the more so as Parliament was in a hurry to pass it before it was dissolved in the run-up to the legislative elections. Due to the tense political context, only 21 members out of 120 were present for the vote, but all voted in favor.

Hagit Weinstock of Weinstock Zehavi & Co, a law firm representing the cannabis industry, saysIt is now time for the Israeli government to put an end to this saga and approve the exports before the elections. We must not be forced to wait another six months to present the project to the next government“.

If the government approves the law, Israel would join the Netherlands and Canada as medical cannabis exporters.

According to Forbes, Among the countries eager to do business with Israel are Australia, Germany, Austria and Mexico. «Israel is perfectly positioned to penetrate and disrupt the medical cannabis market, which is estimated to be worth $33 billion worldwide within five years,» explains Saul Kaye, CEO of iCAN, an Israeli medical cannabis company. «In Israel alone, we expect sales in excess of $1 billion to countries interested in our products.

Details of the law

The law stipulates that cannabis producers must obtain a license from the Ministry of Health. The police will issue recommendations on all applicants for a license for any activity related to the industry. The recommendation will be positive, negative or absent. The law also provides a budget for the Ministry of the Interior and its police to “monitor, track and control the production and delivery of cannabis for export and ensure that there is no risk of leakage to the local black market». Anyone violating the terms and conditions of their license will be liable to two years' imprisonment and a fine of 75,000 shekels (17,420 euros).

There are already eight medical cannabis producers operating in Israel, as well as other companies involved in the processing, marketing and distribution of medical cannabis. Dozens of farmers have also obtained licenses to grow cannabis, but have not yet begun cultivation due to the delay in the export project. Delay which has prompted some companies to relocate their operations. These activities, which are currently on stand-by, will soon be able to resume (although a delay of six to eight months after possible government approval is to be expected), and the Israeli market is likely to attract a great deal of investment. In this respect, the law stipulates that «foreign investments of more than 5% in Israeli companies will require the approval of the regulatory authorities», and the investor will also be subject to a police recommendation.