By Javier Hasse via El Planteo

The release of a draft resolution by the Colombian Agricultural Institute (ICA) regarding phytosanitary requirements for importing dried cannabis flower from Canada has raised alarms in the industry. While this is not yet a final decision, business leaders and industry experts warn of the potential negative effects on national production.

However, he adds that the move makes neither economic nor political sense: “Colombia has the capacity to produce top-quality cannabis flower at much more competitive costs than Canada.”

The Problem Of Canadian Oversupply

The root of this issue is clear: Canada is producing more cannabis than it can sell. After the legalization boom, companies grew rapidly, generating an oversupply that they are now looking to offload in emerging markets. Nosiglia explains: “Canada may have an interest in exporting because they produce more than they sell—this is the aftermath of the industry boom where companies expanded beyond what was necessary.”

According to a report by MJBizDaily, since 2018, Canada has destroyed nearly 1,700 tons of cannabis due to a lack of demand. Overproduction has been a persistent problem, with regulations limiting the commercial distribution of large volumes of dried flower.

Additionally, the Canadian market is facing a significant inventory surplus. By mid-2024, Health Canada reported that approximately 36 million units of dried flower remained unsold, reflecting the difficulties of selling the product within its own borders.

And here's the key point: in a market already oversaturated, with cannabis piling up in warehouses, the possibility of Colombia accepting imported flower seems, at the very least, strange—like "selling sand in the desert."

A Blow To Colombian Producers

For local businesses, allowing cannabis imports would be a major setback. Colombia already produces high-quality cannabis but faces barriers to exporting it, while internal regulations still prevent the sale of dried flower in the medicinal market. Nosiglia is blunt: “Politically… it would be a massive mistake and an insult to local entrepreneurs who have struggled for years with an overly regulated export model and an extremely limited domestic market.”

López also emphasizes that allowing cannabis imports from Canada would have a devastating economic impact on the national industry. His letter notes that Colombian producers have invested in international certifications to export dried flower to demanding markets like Germany, Australia and Israel, where wholesale prices range from $13 to $27 per gram. However, Canadian cannabis—priced significantly lower due to oversupply—could displace local producers.

Price Differences And The Risk Of Dumping

The concern goes further. In 2024, Israel launched an investigation into dumping by Canadian companies, accusing them of selling cannabis at artificially low prices to monopolize the market. According to López, this practice could negatively impact Colombian producers: “The commercial risk of importing cannabis from Canada to Colombia would increase substantially.”

The Future Of Colombia's Cannabis Market

Meanwhile, President Gustavo Petro's government continues to push for the development of the cannabis industry, and the debate over adult-use legalization remains unresolved in Congress. In the meantime, the national sector continues to face regulatory hurdles that hinder its growth.

But here's the big question: if Colombia already has high-quality cannabis with international certifications and enormous export potential, why haven't better conditions been created for local producers? The final decision on importing dried flower from Canada has yet to be made, but the message from industry leaders is clear: Colombia doesn't need foreign cannabis—it needs better conditions to sell what it already produces.

Lead image via Shutterstock

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