In the United States, the black market also benefits from cannabis legalization

The Various forms of cannabis legalization in the United States, initiated by Oregon, Colorado, and Washington State, demonstrate a different approach to cannabis regulation, with some good examples and some not-so-good ones. As a reminder, cannabis is still illegal in the United States. However, each state has autonomy from the federal government, which allows them to legalize cannabis, same-sex marriage, and so on.

The U.S. is now paying the price for its lack of federal consistency regarding cannabis legislation: states that haven’t legalized marijuana are seeing cannabis produced in places like Colorado flood their black markets.

In Wyoming, Nebraska, or Utah, drug dealers all they have to do is take a round trip to that city in Colorado the nearest one and find good-quality weed on the black market. Dealers then source their supply from certain grow shops or from individuals who grow plants at home. Colorado is seeing the emergence of a new type of illegal market where the dealer acts as producer, retailer, and reseller, offering prices that undercut legal competition.

Not only do they not pay taxes, but they can also sell it online legally—it’s like a Craigslist for cannabis. Illegal cannabis is sold between 20$ and 30$: one-eighth of an ounce that is, 6 to 7 euros per gram, whereas dispensaries sell it for between 15 and 20 euros per gram. Larisa Bolivar, a pro-legalization activist, points to the excessive taxes on cannabis: «A high tax rate fuels the growth of the black market. It encourages risky behavior.».

According to former Colorado Attorney General John Suthers, the Colorado has become a legal producer across the entire U.S. black market. Products manufactured in Denver are reportedly found throughout the country. He is also concerned about young people’s easy access to weed: 38% of young smokers obtain their weed through an intermediary who buys it legally and resells it immediately afterward. The attorneys general of Nebraska and Oklahoma have filed a lawsuit against the state of Colorado for allowing a «dangerous and uncontrollable» drug trade to flourish, and were recently dismissed. The situation is much the same in Oregon, where, according to the website Newsweek, 80% of the cannabis produced is reportedly destined for export to other states.

For American proponents of legalization, the United States has only one solution to stem the massive flow of illicit cannabis: legalize cannabis at the federal level.

Theo Caillart