Overview of Japan's Cannabis Reform Initiative
Japan, traditionally known for its strict stance on cannabis, is now making significant strides towards cannabis reform. This move could potentially revolutionize the country’s CBD industry and pave the way for the establishment of a medical cannabis and industrial hemp industry.
Key Developments in the Reform Process
In late October 2023, the Japanese government approved a bill to amend its nearly 75-year-old Cannabis Control Act, proposing a major shift in the nation's cannabis policy. The bill, passed by the House of Representatives on November 14, 2023, is being closely watched by businesses and investors eyeing the region as a promising market opportunity.
The Amendment and Its Implications
The amendment to Japan's Cannabis Control Act marks a significant change in the government's approach to cannabis, particularly in the medical and industrial sectors.
Changes in Pharmaceutical Cannabis Regulations
One of the notable changes brought about by this amendment is the allowance of pharmaceutical products containing ingredients extracted from cannabis plants for domestic use. Previously, such products were restricted to clinical trials only. For example, GW Pharmaceuticals’ Epidiolex, approved for clinical trials in Japan in 2019, will benefit from this change.
CBD and Industrial Hemp in Japan
The amendment also introduces critical changes in how cannabinoid products are defined and regulated, significantly impacting Japan's thriving CBD market.
Impact on the CBD Market
Currently, the booming CBD market in Japan permits the import and sale of hemp-derived products, provided they contain no observable levels of THC and are derived from stalks and seeds. The new amendment is set to expand this market by allowing the import of products derived from the flower, leaves, or resin of cannabis plants, as long as they adhere to the newly defined THC limits.
Reclassification of THC and Legal Challenges
Another major aspect of the amendment is the reclassification of THC as a narcotic under the Narcotics and Psychotropic Control Act. This move effectively closes a loophole in the existing Cannabis Control Act, which does not specifically address the 'use' of cannabis but imposes strict punishments for importing, exporting, cultivating, transferring, or possessing cannabis products.
Controversies and Opposition
Opposition parties and citizen groups have raised concerns about the reclassification of cannabis use as a crime. They argue that this goes against the global trend of shifting from criminalisation to harm reduction in drug policy. Left-leaning political party Reiwa Shinsengumi, led by Representative Taro Yamamoto, has voiced opposition to the creation of new criminal offences associated with cannabis use.
Prospects for Japan's Cannabis Industry
With these amendments, Japan is expected to define permissible levels of THC in cannabis-derived products and potentially establish a framework for promoting hemp cultivation in the country.
Future of Hemp Cultivation and Cannabis Imports
Japan's reliance on CBD imports is likely to evolve with the new amendment, encouraging local cultivation and manufacturing. The government's plan to issue grower licenses for industrial hemp and cannabis for medical or pharmaceutical use is a notable step towards self-sufficiency in the industry.
