A disjointed approach to the black market

For nearly a century, the marijuana industry in Canada has been left to the black market. This has enriched criminal organizations, promoted violence in communities and done little to prevent youth access to the drug. Today, the federal government is seeking to redress this issue and, by legalizing marijuana, it intends to shift it from the hands of criminals and into a more responsible marketplace.

The policy’s success will largely depend on the regulatory details, which will govern aspects of sale ranging from taxation to packaging and promotion.

If the government is serious about keeping criminals out of future marijuana sales, it must ensure pricing is competitive, that consumers can identify legal brands versus illegal supply, and that access is convenient.

After all, why would consumers buy from a legal source if the price is considerably higher, if they cannot identify trustworthy brands, or if the legal products do not satisfy their preferences?

To this point, indications seem encouraging that the federal government’s approach is informed, pragmatic and reasonable. While this is good news, it also highlights a glaring inconsistency between the government’s approach to marijuana versus tobacco.

Canada faces a very serious problem with illegal tobacco: According to the RCMP, contraband tobacco is a multi-billion-dollar industry run by sophisticated organized crime groups. Nearly a quarter of the tobacco Finance Minister Bill Morneau has stated that “we want to keep criminal elements out, and keep cannabis out of the hands of children … this will mean keeping taxes low.”

Meanwhile, tobacco taxes account for 70 per cent of the price of cigarettes, which allow criminals to sell illegal tobacco at a small fraction of the cost of legal products. The government’s