Controversy has erupted in the Jamaican cannabis industry after comments made by Aubyn Hill, the former head of the Cannabis Licensing Authority (CLA), have been refuted by the cannabis establishment. Hill’s comments, which were made during a hearing in the Jamaican House of Representatives, have been described as “untrue and misleading” by industry insiders.
According to the cannabis establishment, Hill was either uninformed, misled, or simply failed to have sufficient interest in the industry. The bottom line is that his statements to the House and media were deemed to be untrue and misleading.
Adding to the controversy is the recent opening of multiple new dispensaries by a company across the island, which are reportedly selling cannabis at a shockingly low price of $100 JMD per gram. This has raised eyebrows within the industry, with many experts claiming that it’s not possible for Jamaican growers to produce cannabis at such a low price.
The product sold by CannaVivo has been imported under the flag of research and development (R&D), which allows for a maximum of 150 kg for R&D purposes. However, the cannabis establishment claims that this product should have never been allowed to end up in commercial stores, which they say shows a lack of governance, track and trace, and oversight.
In recent discussions surrounding the importation of cannabis products into Jamaica, legal experts have pointed to the potential implications of the practice known as “dumping.” According to the World Trade Organization (WTO), dumping can be defined as a situation of international price discrimination, where goods are sold to a foreign market at a price that is lower than the price charged in the domestic market.
Under Article VI of the General Agreement on Tariffs and Trade (GATT) 1994, anti-dumping duties can be imposed on imported goods in cases where dumping is determined to be causing or threatening injury to a domestic industry, or materially retarding the establishment of a domestic industry. This means that if the practice of dumping is found to be occurring in the Jamaican cannabis industry, specific anti-dumping duties may be imposed on imports from the offending source.
Legal analysts suggest that one potential solution to address the issue of dumping is to impose heavy anti-dumping duties and taxes on imported cannabis products. Additionally, they recommend applying the same stringent testing for pesticides, fungicides, and heavy metals that is required by the Ministry of Health and/or the Bureau of Standards to all imported products, with the cost borne by the importer. Another measure that may be considered is the implementation of European Union Good Manufacturing Practice (EUGMP) certification to ensure that imported products meet high-quality standards.
It is argued that implementing these measures would prevent inferior products from flooding the Jamaican market and prevent the country from becoming a destination for substandard products. As the cannabis industry continues to evolve in Jamaica, ensuring fair trade practices and the protection of domestic industries will be essential to its success.
The controversy has led to calls for greater oversight of the Jamaican cannabis industry, with some experts calling for a review of the regulatory framework to ensure that it’s able to effectively oversee and regulate the industry. Despite this, CannaVivo continues to sell cannabis at a low price, and many are eagerly watching to see how this controversy will play out in the coming weeks and months
