to participate in the regional marijuana market, or under what conditions. This is important since the involvement of external actors will have a major impact on the outcome for the countries. These outcomes can be both negative and positive. Possible positive influences include, significant capital investments into the industry, the transfer of technology and knowledge, in areas relating to production, processing and research and development, particularly in marijuana pharmaceuticals. Although many MNCs have the tendency to limit such knowledge and technology transfers, the governments can ensure these features are written into the agreements between the MNC and the country in question. Possible negative influences include the use of large amounts of imports in the production process, the use of foreign labour, the exploitation of the region’s indigenous marijuana plants, the repatriation of profits and domination of the local market, to the detriment of the local marijuana farmers and retailers. 10.26. The issue of the use of foreign labour and production inputs may be addressed by including restrictions in the Agreements that require the companies to use locally available production inputs. However, the repatriation of profits, the exploitation of the indigenous marijuana plants and market domination, may be more complicated to address and will require serious deliberation on the part of the Region’s decision-makers. 10.27. Liberalisation and legal reform of marijuana cannot be undertaken in an ad hoc way, without a proper appreciation of the deep historical inequities between CARICOM states, as a group of underdeveloped, often exploited nation-states and companies from large, powerful nations interested in marijuana as an industry. CARICOM must avoid the unequal paradigms that were experienced in other trade arrangements and learn lessons from historical experiences with other crops and indigenous services. These include sugar, cocoa, bananas, offshore finance, even tourism, all of which existed within predatory relationships and too little returns for CARICOM peoples.
Overall Benefits to Liberalisation
10.28. With liberalisation, while price is expected to fall, direct economic benefits in the form of revenue from taxes, licenses, tourism, sales etc. are likely to occur, with the highest gains projected for a legalised, but highly regulated industry with niche markets. Development gains will be superior with controls and balances to protect small entrepreneurs, farmers and local industry. Indirect benefits such as savings from increased employment from less incarceration, reduced costs for law enforcement and for medical treatment, are also likely. The region can also experience significant economic gains from developing its Medical Marijuana industry, including the development of its own medical and scientific research. Finally, the introduction of industrial hemp as a commodity, differentiated from other forms of cannabis, can lead to a vibrant industry. However, an ad hoc, uninformed and unilateral regulatory approach can run counter to CARICOM’s developmental objectives. This is a powerful impetus for a carefully calibrated, balanced, powerful, regional response. 10.29. Considering the several variables of the economic question on the issue of cannabis/ marijuana, the Commission is of the view that the economic benefits of any law reform initiative that deviates from prohibition, considerably outweighs the economic benefits to retaining the status quo of blanket illegality.
11. INTERNATIONAL LAW ISSUES ON CANNABIS 11.1. An important consideration for CARICOM is the status of cannabis in the international arena. This presents a significant obstacle in effecting change to the legal regime on cannabis given its classification as a dangerous drug or narcotic under international instruments. Cannabis is currently scheduled in Schedules I and IV of the UN Single Convention on Narcotic Drugs 1961, as amended by the 1972 Protocol (the “Single Convention”), which seeks to limit the possession and use of all narcotic drugs. This scheduling was created based on a report created by the Health Committee of the League of Nations in 1935. It is also regulated under the Convention against the Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1998), which requires States to adopt measures to establish as a criminal offence any activity related to narcotic drugs.
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