Why the World Is Watching Canada's Pot Legalization

All eyes are on Canada as it prepares to legalize recreational marijuana in October, becoming only the second country to do so after Uruguay. The pending change has touched off an investment boom and pushed up valuations of Canada’s cannabis producers. They’re enjoying a first-mover advantage as medical and recreational pot gain traction from the U.S. to Germany. Canada’s industry will also be the litmus test for whether governments can stamp out illicit sales, transfer billions of dollars in revenue to an emerging industry, generate taxes and create jobs.

Fulfilling an election promise by Prime Minister Justin Trudeau, legal sales of certain forms of cannabis begin on Oct. 17. Fresh or dried cannabis, cannabis oil, and plants and seeds for cultivation will be allowed initially. Edible products and concentrates will be legalized later. Federal regulations put the minimum purchase age at 18, allow people to grow up to four plants at home and set strict rules on packaging and branding. The law also bans marijuana exports and imports, except for medical or scientific purposes, which require a permit. It’s up to Canada’s provinces to determine rules for retail sales and distribution. Provinces also have the power to lower possession and personal cultivation limits, increase the minimum age and restrict where marijuana may be used in public.