Last week, we reported that Israel is gearing up to impose a 165% tariff on cannabis imports from Canada to prevent price dumping. Now, according to a report, Canadian importers are gearing up as well, but not to withstand the hit, but rather to file a petition at the High Court of Justice.
An investigation by the Commissioner for Trade Duties determined that Canadian cannabis producers are exporting to Israel at prices significantly lower than those accepted in Canada, and even at a loss.
The report mentions importers being particularly displeased by this new tariff. They believe however that the court of justice will be on their side, and simultaneously they are raising the alarm that prices will go up by 2 or 3 prices, forcing patients to turn to the illicit market. Considering a 165% price increase, it's safe to assume that a package of Canadian cannabis that today costs around 300-400 shekels ($80-100), may end up costing 750-1000 shekels ($200-270). Another importer will mention that this may as well bring imports from Canada to a minimum - which could have been the goal from the very beginning, one may say.
According to sources familiar with the matter, imports from Canada currently account for about 20% of the total medical cannabis market in Israel. However, in terms of popularity, it seems that Canadian products occupy a more significant share than their relative volume. Thus, in the table of the "50 most popular strains," 30 come from Canada, compared to only 20 from Israel.
"We welcome the decision to impose tariffs on cannabis imports," said Asaf Sella, Co-Founder and CEO of the Medocann Group. "If the goal is to build a strong and sustainable local industry, there must be a supportive framework in place. The market needs time to develop before opening the gates to extensive imports."
Sella emphasized that, according to recent data, Israeli cultivators are fully capable of meeting domestic demand. He believes the previous policy of allowing large-scale imports was driven solely by economic considerations. "If the objective is to serve patients' best interests, we are fully aligned with that," he said. "Local cultivators can meet all patient needs - whether in terms of specific products, quality standards, or pricing. Over the past few years, around ten local growers have gone bankrupt. It's time to change direction and allow the local industry to thrive."