Cannabis
Few industries present more complex legal issues than the cannabis industry. The 2016 Access to Cannabis for Medical Purposes Regulations, and the October 2018 Cannabis Act have made Canada a focus for the cannabis industry, and those interested in legalization, worldwide. The shift from prohibition to cautious legalization is creating opportunities, not only for producers of cannabis, but also for a range of supporting and spin-off industries in Canada, the United States, and beyond. With those opportunities come regulatory challenges, notably in the areas of cultivation and production licensing, and more recently, distribution and marketing. At the federal and provincial levels, the regulatory regimes are based, in part, on long-standing legal requirements, and restrictions for alcohol and tobacco. Not surprisingly, many cannabis industry insiders have come from those industries, and are trying to "read" the opportunities and risks based on that experience.
For those in the industry, 2019 will bring new focus on franchising, as the western provinces, Ontario and Newfoundland have opened the door to private sector retail sale. Retailers will continue to navigate the new rules of the various provinces and municipalities. The legalization of cannabis edibles in October 2019 will also represent a new opportunity to present cannabis products to a more "mainstream" set of consumers. In turn, employers will increase their attention to policies related to substance use in the workplace, workplace impairment, and health and safety issues.
Canada's new food regime
On January 15, 2019, the Safe Food for Canadians Regulations entered into force. The new regime modernizes Canada's food regulatory scheme, which is administered and enforced by the Canadian Food Inspection Agency (CFIA). The new Act and Regulations effectively consolidate a range of product-specific regimes for meat, fish, agricultural products, and more. The Food and Drugs Act remains unchanged, and continues to operate to provide "overarching protection for consumers from any foods that are unsuitable for consumption". However, the regime does more than merely consolidate the former legislative measures. In an effort to modernize the regulatory scheme, the Act includes a number of new and expanded provisions and powers, including those related to trade – both international and interprovincial – of "food commodities". In addition to certain new prohibitions respecting the importation of unsafe food, the Act provides for a detailed licensing or registration regime applicable to trade in food commodities, and related activities, such as traceability and preventive controls. These provisions are already increasing import control for Canadian companies. It should be noted that the regime also aims to increase international market opportunities for the Canadian industry, by aligning Canada's standards more closely with those in other countries, and by allowing the CFIA to issue export certificates. The new licensing and compliance requirements present significant operational adjustments for manufacturers, distributors, importers and retailers of food products, and will continue to do so in the months to come. While many requirements have been applied in January 2019, other obligations are being phased in from 2019 to 2021, depending on the food commodity, type of activity and business size.
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