Portugal ignites talks about adults in Europe

The timing of full adult cannabis use legislation on the “west coast” of Europe rekindles debate about reforms elsewhere in the region – and standards almost everywhere, including Portugal.

In retrospect, much will be written about this period – in general and more specifically about the cannabis reform in Europe. The pandemic, along with other long-bubbling issues such as the acceptance of the medicinal efficacy of cannabis, has brought the entire discussion of cannabis normalization to the fore of political debates across the region across national borders.

In addition to the emerging leisure markets in Luxembourg and Switzerland and the reorganization of the Dutch market, the biggest trigger this summer is the discussion that is currently being held in Portugal. The country, which has been pursuing the most liberal use of all drugs on the entire continent for decades, is finally deciding to regulate and normalize its cannabis industry at a recreational level.

The decision-making process alone, regardless of the fate of the draft law (although it is widely expected to enter into force), will have a profound impact on the entire normalization debate both near and far from Portugal.

Why is Portugal different from Luxembourg and Switzerland?

There are several reasons why this development is indeed the most impactful discussion of leisure reform in Europe to date, no matter how organized the Dutch eventually become.

Here’s why.

First, the markets in both Luxembourg and Switzerland are (relatively) small. The former is a country of just over 600,000 residents, so it’s unlikely there will be a rush to grow cannabis that will have an impact any time soon. In Switzerland, where there are discussions about restricting leisure products to the purchase of plants grown in the country, the move should stimulate a domestic cultivation market that has so far been established around hemp.

However, Switzerland is not part of the European Union (EU) and what is more, everything produced here will be much more expensive than the crops grown in warmer and far cheaper labor markets.

Added to this is the already up-and-coming cannabis cultivation, which has already established itself here – namely to supply the German medical market – and the effect is suddenly of great importance. Firms started growing in the summer of 2017 when Tilray decided to abandon the complicated application process from Germany and literally move to warmer climates.

Since then, cultivation has advanced in Portugal, while cultivation in Germany has stalled and stuttered in places like Spain and Greece. Indeed, Portugal has become the country of choice for many in the German market looking for medicinal cannabis. With a recreational market, that production will increase dramatically, if not exclusively for export and not exclusively for medical purposes.

Indeed, Portugal, more than any other country on the continent, is prepared to become the “next” Holland, if not beyond.

The knock-on effects

When the legislation in Portugal becomes law next year, there will be four leisure markets in Europe at different levels of maturity. This will definitely drive the discussion in other places – including in Germany – but also in economies that are even more heavily affected by the pandemic and dependent on tourism. Tax revenues from cannabis tourism, and beyond that, economic development in the form of high-tech cultivation and extraction, if not beyond manufacturing, will prove a siren song that few can resist.

However, Portugal’s likely turnaround will not only affect actual cultivation, but also have a significant and impactful impact on a brewing talk in Europe since Tilray announced the opening of its multi-million euro campus. Namely – the standards required for the entire industry in a clearly mixed production market.

GACP, organic and GMP certification is up for discussion

One of the biggest breweries on the certification side of this whole legalization is the certification and processing regulations to be imposed on a market that is not only exploding but also exporting to Germany (especially) when the Dutch and Canadians couldn’t produce enough.

Indeed, many companies in Portugal have started to equip their cultivation and extraction facilities to serve a GACP (or agricultural rather than GMP or pharmaceutical) production chain. That may sound academic, but the problem arises as soon as companies start thinking about selling products across all EU borders (and most certainly to Germany). This already applies not only to products grown in Portugal, but also to products that come from abroad and reach a third country.

Furthermore, the much broader manufacturing market already underway here will inevitably begin to delve into how cannabis should be regulated beyond the GACP standard. Portugal in particular is likely to be the first place where full organic certification could begin, starting with the associated regulatory issues surrounding extracts.

Anyway, that much is true. Portugal’s move to recreational sport at the federal level will continue to drive the legalization and normalization of cannabis in the EU, Europe and far beyond.