Israel's Ministry of Economy and Industry, led by Minister Nir Barkat, has announced a major policy shift: an anti-dumping duty of up to 165% on imports of Canadian cannabis flowers, according to a report. The decision, intended to protect Israel's struggling local cannabis industry from unfair trade practices, follows a detailed investigation and now awaits approval from the Minister of Finance and the Knesset Finance Committee.
The investigation, led by Commissioner for Trade Levies Danny Tal, found that Canadian producers were exporting cannabis to Israel at significantly lower prices than in their domestic market, in some cases even below production cost. This, according to the ministry, has inflicted substantial damage on Israeli growers, many of whom claim they are being forced to sell at a loss.
The proposed levy will apply to most Canadian companies, with exceptions made for a few who received significantly lower rates. However, these exempted firms have largely ceased exports to Israel, meaning most imports will face steep tariffs if the policy is enacted.
Importers and the Ministry of Health have voiced strong opposition, warning of sharp price increases for patients and a potential boost to the black market. The Competition Authority also criticized the methodology of the investigation. Meanwhile, domestic growers argue the move is vital to ensure fair competition, noting that Canada prohibits cannabis imports entirely, giving its producers an unfair advantage.
After years of discussions including a lawsuit with and against the different Ministries demanding fair trade, a change is finally realized," commented Dr Eyal Policar from CannArava. "Dumping from Canada must be stopped. Finally the voice of the few remaining local producers is heard. We are not against imports as long as it's done fairly, and with amounts (kg) that make economic sense. Make no mistake: million of shekel lost, many companies and their investors went under. We demand these taxes be imposed immediately and publicly advertised. Is the battle for survival for the local producers finally over? No. There are still regulations that must change, for the survival, and profitability, of local producers. Not at the expense of patients. Fair trade means fair prices, fair quality, and fair competition."
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Minister Barkat emphasized the strategic importance of Israel's cannabis sector, citing its agrotech potential and the risk of over-reliance on imports. If approved, the levy will remain in effect for four years. Israeli growers are pushing for swift implementation, warning that continued delays are accelerating the industry's decline.
The Canadian import share accounted for about 90% of Israel's medical cannabis in 2023.