Cannabis Council of Canada Urges Prime Minister Mark Carney to Prioritize Major Industry Reforms in New Mandate

With the reappointment of Mark Carney as Canada’s prime minister following a tightly contested federal election, the Cannabis Council of Canada (CCC) is seizing the political moment to push for critical policy reforms. The council is urging the Liberal government to address the urgent economic challenges plaguing the cannabis sector—an industry that has contributed over $43 billion to the national economy since legalization in 2018.

Carney, who replaced Justin Trudeau on March 9 after the longtime cannabis supporter stepped down on January 6, now holds the reins of a minority or possibly majority government depending on final vote counts. Either way, the cannabis industry wants immediate action.

Federal Cannabis Advocates Say Ottawa Has ‘Failed the Industry’ Since Legalization

Despite Canada’s pioneering role as the first G7 country to legalize recreational marijuana, the CCC argues that the federal government has fallen short in nurturing the sector’s long-term viability. According to CCC President Paul McCarthy, cannabis professionals have been left behind while other industries received substantial support.

The statement, released a day after the federal election, emphasized that the cannabis sector is not looking for handouts—it’s demanding fair treatment.

Legal Cannabis Prices Plunge as Producers Struggle to Compete With Illicit Market

One of the most alarming trends since legalization has been the rapid drop in cannabis prices. Legal marijuana that once sold for approximately $10 per gram in 2018 now fetches only about $3 per gram. This steep decline has put enormous financial strain on licensed producers, many of whom are struggling to stay afloat.

While competition is a natural part of a free market, the CCC points out that unfair taxation, complex regulations, and an entrenched black market are pushing legal operators to the brink.

Cannabis Council Demands Overhaul of Federal Excise Tax Policy to Help Legal Businesses Survive

At the top of the CCC’s policy wishlist is an overhaul of the current cannabis excise tax structure, which it considers burdensome and outdated. As it stands, licensed producers must pay the greater of 10% of the product’s value or $1 per gram—a formula that disproportionately harms low-priced legal products trying to compete with the illicit market.

The CCC proposes replacing the $1-per-gram minimum with a flat 10% ad valorem rate, as recommended in 2023 by the House of Commons Standing Committee on Finance. An ad valorem tax is calculated based on the value of the transaction, not a flat per-gram charge.

By switching to a more equitable tax model, the legal industry would gain much-needed breathing room to innovate, invest in product quality, and price competitively.

Lack of National Cannabis Excise Stamp Adds Costly Bureaucracy to Legal Supply Chain

Another major concern for the CCC is the fragmented system of provincial cannabis excise stamps. Each province and territory in Canada currently has its own unique cannabis tax stamp, which is required to show compliance with excise regulations.

This decentralized system creates significant logistical and financial hurdles for producers who operate nationally. The CCC is advocating for a unified national excise stamp, which would simplify compliance and reduce distribution costs for businesses.

Illicit Cannabis Market Still Dominates as Consumers Remain Unaware of the Risks

One of the biggest threats to the legal cannabis sector remains the illicit market, which continues to account for an estimated 25% to 40% of total cannabis sales in Canada. Not only does this undercut licensed producers, but it also exposes consumers to unregulated, potentially dangerous products.

Recent laboratory tests conducted by the federal government revealed that 94% of illicit cannabis samples contained pesticides—many of which are harmful and banned for use in food or consumer goods.

The CCC is urging the government to launch a national public awareness campaign to educate consumers about the dangers of illegal cannabis products, as well as the importance of supporting licensed producers.

Industry Leaders Call on Carney Government to Back Canada’s Cannabis Workforce

The legal cannabis industry directly and indirectly supports tens of thousands of jobs across Canada—from cultivation and processing to retail and research. Despite these contributions, cannabis workers have often been excluded from broader federal economic strategies.

With Mark Carney now tasked with shaping Canada’s post-Trudeau economic direction, industry leaders want cannabis to be included in national growth and innovation frameworks, including green economy initiatives, export strategies, and employment programs.

Legal Cannabis Industry Contributed $7.4 Billion to Canada’s GDP in 2024 Alone

According to the CCC, the economic footprint of cannabis is undeniable. Since legalization, the industry has added over $43 billion to Canada’s gross domestic product (GDP). In 2024 alone, the legal cannabis sector contributed approximately $7.4 billion.

This level of contribution rivals many traditional industries, yet the cannabis sector continues to face a lack of recognition and systemic barriers.

Industry advocates argue that with targeted reforms and equitable treatment, cannabis could become a cornerstone of Canada’s innovation economy, offering sustainable jobs and tax revenues for decades to come.

A Pivotal Moment for Canada’s Cannabis Industry Under Carney’s Leadership

As Mark Carney begins his term—whether majority or minority—his government faces a defining moment for one of Canada’s most misunderstood yet economically vital sectors. The Cannabis Council of Canada has made its priorities clear: fix the tax system, streamline regulation, combat the black market, and recognize the cannabis industry’s rightful place in the Canadian economy.

With the political dust settling, the ball is now in the Liberals’ court. Whether they rise to the occasion may determine not only the future of cannabis businesses but also the country’s reputation as a global leader in progressive drug policy.