Jamaica's cannabis industry optimistic about possible US reclassification of marijuana

 

Cannabis stakeholders in Jamaica are welcoming reports that US President Donald Trump is considering reclassifying marijuana from a Schedule I drug to Schedule III, placing it in the same category as mild painkillers and other substances with accepted medical use. 

 

Cannabis stocks in the United States surged on Friday after indications that the White House was preparing to significantly ease federal restrictions on marijuana. 

 

Weed producers Tilray Brands and Canopy Growth jumped more than 41 per cent and 50 per cent, respectively.

 

If implemented, the shift would represent the most substantial change to US drug laws since 1970, potentially reshaping the country's US$32 billion state-regulated cannabis industry across 40 states.

 

But what does this mean for Jamaica?

 

According to reports, an executive order signed by President Trump as early as Monday could authorise the reclassification of cannabis.

 

While no final decisions have been announced, industrial players in Jamaica say the move could have major implications for local businesses. 

 

Chief Operating Officer of Medicanja Limited, Andray McKenzie, says rescheduling would be highly beneficial for the Jamaican cannabis sector, making it easier for banks to serve companies involved in the industry.

 

He notes that American banking policy often influences how Jamaican financial institutions operate, making US changes especially important for local players. 

 

"Medicanja in the past tried to go on the Jamaica Stock Exchange. I know, while I was not with the company at the time, but from what I understood is that the banking factor was a major hurdle in getting the company to be fully processed to register with the JSE. So I think that is a positive move if the executive order clear the safe banking regulations and allow for banking to take place in its fullness with the industry."

 

Mr. McKenzie said it remains unclear whether the United States would permit imports of cannabis products, but even without export access, the policy shift could encourage greater investment in Jamaica's medical cannabis sector. 

 

"Access to finance or subsidy to the business will help. I know, for example, the DBJ does not give support to cannabis companies. I was on a call some time last year and I heard that. So if that is also freeing it up where you can get support from the Development Bank of Jamaica, then that is also a benefit to any player that is in the industry. While we focus on pharmaceuticals and we are not in the smoking or primary oil, but we do come under a lot of scrutiny as well trying to do business from other companies," he noted.

 

Despite the potential benefits, experts cautioned that moving cannabis to Schedule III would not legalise or decriminalise marijuana at the federal level in the US and state-regulated markets would continue to operate in conflict with federal law.

 

Currently, marijuana is listed as a Schedule I substance, the most restrictive category alongside drugs like heroin and LSD, which are deemed to have no recognised medical value.

 

Rescheduling it to Schedule III would acknowledge its medical use, but still restrict it to prescription only access similar to steroids, ketamine and codeine. 

 

President Trump had hinted in August at the possibility of reclassifying marijuana.