November 1, 2012

Mexican Group’s Study a Mixed Bag for Marijuana Legalization Efforts in 3 US States

Image for marijuana studies

A new study released by an influential Mexican think tank could bolster campaigns to legalize marijuana in Colorado, Oregon and Washington ahead of the election. Or it could hurt those efforts.

It all depends on how you look at it.

The report – released by the Mexican Institute for Competitiveness – surmises that legalization in any of the three states could slash profits of drug cartels in Mexico significantly (by $1.4 billion if Colorado passes its marijuana bill, $1.4 billion if Washington legalizes cannabis and $1.8 billion if Oregon approves its measure).

This can be seen as a powerful argument in favor of marijuana legalization, as it would keep marijuana money inside the United States and represent a major blow to the ruthless cartels behind a horrifying wave of violence in Mexico.

Betty Aldworth, advocacy director for the legalization campaign in Colorado, said the study helps validate the group’s message.

“If we regulate and control the marijuana market in Colorado, it will end the flow of marijuana profits from Colorado to the cartels in Mexico and elsewhere,” Aldworth said. “Coloradans are deeply concerned about the impacts of the war on marijuana in Mexico, and appreciate that moving marijuana sales off the streets and behind a counter will chip away at the cartels’ power both here in Colorado and abroad. This is one of the reasons we are seeing strong and growing support for Amendment 64 in the Latino community.”

But opponents to the legalization measures could use the study to their benefit.

According to the report, Mexican drug cartels would see a steep decline in profits because a significant amount of marijuana produced legally in Colorado, Oregon or Washington would find its way to nearby states, where it would be sold illegally at cheaper prices than Mexican cannabis smuggled into the country.

In other words, the study assumes states that legalize cannabis would become major marijuana producers for the rest of the US and that a hefty amount of diversion will take place. The other concern is that the Mexican drug cartels would try to get involved in the legal marijuana business, which would open up another can of worms.

Aldworth and other legalization supporters, however, take issue with the report’s assertion that a high level of diversion will take place, saying that US laws would still prevent cannabis from being transported across state lines. They stress that the underlying conclusion of the report – drug cartels will take a huge hit – still rings true if no (or limited) diversion takes place.


6 Comments:

  1. I wonder if the fact that in states like Washington there will a 25-75% increase in price of state sold marijuana (depending on how many time it was taxed before it got to the store front). This could drive up the price of legally sold marijuana creating a market for cheaper illegally produced Mexican marijuana.

  2. I don’t see the opposition’s argument here. Is the point that its better for the black market to be operating out of Mexico than in Colorado? The black market is the black market. It would be a zero sum gain at worst, and arguably it would be easier for law enforcement to catch interstate traffic and certainly less violent for Mexicans.

  3. Anything that stops illegal import into the country, anything that helps to regulate and control the overall quality and health benefits, anything that strengthens our economy, or anything that shuts down illegal cartel operations is all for the greater good of this movement. So LEAGALIZE!

  4. Wrong, there is enough local black market, to satisfy the local and expanding markets.

  5. If diversion really does become a problem (which likely it won’t) we can solve that pretty simply by legalization at the federal level… Just sayin’

  6. If you are seeking an opportunity to get into this industry be warned, you cannot unless you already have two years residency in Colorado. BUT, there is an exciting way for you to make some money by lending to the industry. As they said in the report there are no banks who will lend to dispensaries, no matter how much profit they generate. That’s where you come in… if you can lend $5,000 to $250,000 for a short time and you want to earn an interest rate from 10% to 30% then please contact me today at: mmjviceroy at g mail.com

    Then you can tell all your friends you are “in” the medical marijuana industry and more importantly you can help sick patients get access to the same high potency cannabis they purchase now for less money than they pay today.

    http://www.csindy.com/coloradosprings/cannabiz/Content?oid=2571509

Post Your Comment:


Please note:
Comments are moderated by our editors who do their best to approve comments ASAP. As Marijuana Business Daily is focused on business, we approve comments that are specifically relevant to industry professionals. General opinions and questions about cannabis may not be posted.

More International Officials Looking at Relaxing MJ Laws

marijuana earth

More high-ranking government officials across the globe are taking up the cause of cannabis, with [click to continue...]

Error Could Force Oregon to Revoke Hemp Licenses

Oregon may revoke all 13 licenses it issued to hemp growers earlier this year after [click to continue...]

Florida’s CBD Program Cleared For Takeoff

Florida’s long-awaited CBD program could move into the fast lane now now that a Tallahassee [click to continue...]

Strict Cannabis Regulatory Proposal Advances in Oregon

RegulationsRules

Marijuana producers and dispensers in Oregon face a laundry list of new regulations under a [click to continue...]

Dozens of Seattle Dispensaries Could Be Shuttered

Medical marijuana dispensaries in Seattle would need to obtain a special local business license by [click to continue...]

Pennsylvania MMJ Legalization Hits Snag

Although a number of marijuana activists have pegged Pennsylvania as one of the more likely [click to continue...]

Hemp, CBD Firm Lands $6.5M in Financing From Institutional Investor

dollar

CannaVest Corp. said it has closed a $6.5 million round of financing with an unnamed [click to continue...]

Proposal Would Dampen Cannabis Business Opportunities in Anchorage

Businesses in Anchorage, Alaska, that allow patrons to smoke cannabis indoors may face legal issues [click to continue...]

OH Legalization Campaign Sabotage Allegation Tossed

A complaint filed by one marijuana legalization campaign against another in Ohio was dismissed unanimously [click to continue...]

Big MN-Backed Grower Applies for Coveted NY License

new york mmj

Kyle Kingsley, MD, is hoping he’s found a way to expand his cannabis cultivation company [click to continue...]

Four WA Rec Stores Sell to Minors in Sting Operation

A quartet of recreational cannabis shops in Washington State wrongly sold marijuana to minors in [click to continue...]

New Lawsuit: CO Cannabis Baron Breaking IL MMJ Rules

Yet another lawsuit has been filed in Illinois over the licensing process in the state’s [click to continue...]

Facebook Blocks MMJ Educational Video

regulations

Medical cannabis apparently isn’t socially acceptable in Connecticut. At least, not by Facebook. A marketing [click to continue...]

Former OH Lawmaker Joins Cannabis Legalization Campaign

Former state Senate Minority Leader Eric Kearney, a Democrat from Cincinnati, has been hired by [click to continue...]

Marijuana Business Daily