How do deal with this?

This is a great question, and applies to more than Canada. As a similar example of governments seemingly not caring about reality; recently, Missouri passed a law to outlaw THCA in products if it comes from outside Missouri. The problem? It seems the ban was likely made because Missouri didn’t want to account for lower pricing in neighboring states. It’s tactic is to keep prices high, and consider it a crime to bring over/use products of another state, even if they’re regulated in that state. And even if they come from federally approved hemp, which is federally allowed to cross state lines. Its already being challenged.

This is the same backwards logic used throughout the industry. This weird idea that governments can keep prices high, and people will pay them without a thought; whether this applies to industry operators, or buyers. Yet we know this isn’t true, or there wouldn’t be constant talk of an impossible to beat black market. A market that exists in its current size, because there’s so much room to undercut the legal market; what with the legal market’s regulatory costs and sin taxes that keep prices high.

Since the black market can keep up with every new product and innovation of the legal market, and change prices immediately if necessary; this means a comparable products market for buyers, at lower prices. In fact, it’s often hard for a buyer to know when they’re in a legal vs illegal dispensary. Illicit shops don’t advertise their black market nature; so much of the time, purchasers assume that if its there and open, it must be legal. As long as the legal industry is set up to add on on these extra costs, it’ll always have issues keeping up with the black market.

All of this is to say that problems abound in this industry. As far as Canada, on March 25th of this year, Canada posted a notice of intent to restructure the current cannabis system, in order to make it more palatable for companies having major issues. And while the country did address expensive regulatory measures, it didn’t so much as bring up taxes once. And it doesn’t seem like anything was figured out yet.

As of yet, there have been no news stories of sweeping changes in regulation, or anything major to relieve the pressure. All updates thus far can be found here; but none seem directly related to the issues brought up in the notice of intent. Perhaps those issues require further consideration. Though it seems Canada has been skirting important issues in keeping its industry afloat; it did put out information recently pertaining to a possible amendment, which would restrict certain flavors for inhaled cannabis products.

Conclusion

Apparently every cannabis operator in Canada is like that kid in kindergarten that had to complain to the teacher every time you got out of line, or held a toy for five seconds too long. And let’s be honest about it, no one really liked that kid. Canada’s overly strict system seems to be resulting in a tattle tale industry of operators, all trying not to be the one to sink.