Switzerland continues to regulate the cannabis industry

According to the Swiss Health and Social Authority, cannabis should no longer be banned, but should be comprehensively regulated. The National Council now has the task of creating this framework and ensuring an integrated health and leisure infrastructure. The first city to launch this cannabis enchilada will be the largest in the country and the capital, Zurich.

In addition to the regulation of the industry at national level, several issues play a role here – a task that has so far only been solved by two countries (Uruguay and Canada). Switzerland supports all of this with a nationwide process.

This is deliberately limited to 5,000 study participants per canton, but will begin to create a “state-by-state” organization for the growth of the industry. These participants must prove that they are already cannabis users. This shouldn’t be difficult. Around a third of the Swiss population has admitted to having smoked cannabis before. Around 200,000 admit to smoking regularly.

Cities will be able to conduct scientific studies – both on the economic impact of a new industry and the impact of recreational cannabis sales (and accessibility) at the local level.

Local manufacturers must obtain a production permit from the Federal Office of Public Health in order to guarantee the quality standards.

Participants can buy cannabis from both pharmacies and social clubs.

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What significance does this development have for Switzerland?

There are currently three markets for adult use in Europe. This includes Luxembourg, which has now decided to go more or less according to plan, to do the same, and Portugal, which is still deciding how to do this at the legislative level. Then there is Holland, which is also a different animal at this point, with a federal regulatory scheme, even if the coffee shops in the larger cities are still largely an independent force.

However, the Swiss process is fascinating for several reasons.

The first is to promote a domestic grow market and another to include recreational cannabis (high in THC). In addition, products are offered on the Swiss market that are so far little known in Europe – namely extracts and edibles. This is a massive next step in the discussion, even if the EU itself will take a while to adjust to the regulatory front.

Regardless, the relative freedom from EU regulation will create an interesting outlier in the middle of the European conversation that will not be ignored. This includes the other legalizing states. It will certainly also include the other two trading partners in the DACH trading region (Austria and of course the big cannabis kahuna in this entire conversation, Germany).

After the parliamentary elections, there has certainly been a renewed optimism about change on the horizon. There are several legal challenges related to the discussion now, starting with the CBD front.

In addition, there is also the new hope that at least a decriminalization, if not a German leisure process, is in progress.

In other words, the Swiss process can move many levers on the reform front – and not just domestically.

However, there is another discussion in the room as well. If cannabis can be sold in pharmacies without a prescription, where is the line between “medicinal” and “recreational” cannabis?

The GACP vs. GMP discussion

Aside from extracts and edibles, perhaps the biggest influence of the Swiss study is to define the boundary – starting with cultivation – between pharmaceutical-grade cannabis and that for recreational markets.

The first place this will show up is cannabis, which comes from indoor and outdoor growing areas. GMP cannabis must be grown indoors (for starters). Because Switzerland has a short natural growing season, it is likely that most of the domestic crops destined for both markets will be grown indoors.

In addition, however, cannabis in Switzerland is channeled through the existing pharmaceutical, food, beverage and cosmetics channels. Novel food is not used (at least for the purposes of the study).

This means that for the first time ever, there will be a fully baked cannabis market where no part of the plant, by cannabinoid, use or product, is left out of the mix.

This is very different from anything else that can be seen in Europe right now, and it will start to make a difference beyond Switzerland’s borders. It is very likely that the “recreational”, THC-rich market here will finally defeat the novel food genius – for all cannabinoids grown in the region, if they are not extracted in a way that is also here is recognized as “normal”.

For all of these reasons, the pending national lawsuit in Switzerland is likely to knock down the cannabis (apple) cart just by showing what is possible.

The states that border the country and are faced with further reforms themselves are watching absolutely.