Global Ganja Report

In the surest sign yet of synergy between the cannabis and booze industries, one of North America's top brewers just dropped $4 billion into the continent's top legal cannabis cultivator. The move sent the cultirvator's stocks soaring—although not the brewer's.

In a fast and furious exchange of retaliatory tariffs, Donald Trump and Xi Jinping appear to have initiated a trade war this week. If Trump isn't careful, he could risk undermining the very domestic economic buoyancy that has helped sustain his popularity among his base. And the cannabis sector is particularly vulnerable, according to industry insiders.

The election of Andres Manuel Lopez Obrador—known by his initials AMLO—as Mexico's next president is being hailed as historic, marking the first time a candidate of the left has had his victory honored. He is pledging a new, demilitarized approach to ending the endemic narco-violence. And his newly named interior minister is a vocal supporter of cannabis legalization. Will a day-lightened cannabis sector provide a way out of Mexico's long crisis?

With Canada now joining Uruguay as the second country to legalize cannabis at the national level, industry eyes are scanning the world map for which could be the likely third. Latin America may provide the candidate, as even UN experts now urge the region's governments to consider legalization as a way out of the endemic narco-violence. But pressure for legal cannabis is fast mounting in several European countries as well. Legalization may soon be on the legislative agenda in Australia, while New Zealand has promised to put the questions before the voters. 

Oakland-based cannabis industry research firm ArcView Group has released a new study, ambitiously entitled "The Road Map to a $57 Billion Worldwide Market." It provides a sweeping overview of recent progress and future prospects for legal or medical herb across the globe. But it also warns that, due to continued legal restrictions and bureaucratic overstretch, the market is in most areas bottlenecked from achieving its potential.

A new study published in The Economic Journal vindicates the optimistic prognosis of cannabis activists that legalizing the herb would de-escalate drug war violence. The study notes a reduction in violence in US states along the Mexican border in recent years, and especially in the counties along the international line. The authors draw a connection to the reduced legal pressure on cannabis in the United States over this same period, thanks to legalization and medical marijuana laws.

A welcome blow is reported against the deeply ingrained stigma that attaches even to users of basically harmless drugs like cannabis that happen to be illegal. The Global Commission on Drug Policy—a body with dissident views but made up of prestigious elder statesmen and world leaders, so it can't be readily ignored—has just issued a statement calling on policymakers and the media to avoid using terms such as "drug user," "addict" and "junkie." The report includes a checklist of what terms should be eschewed or embraced to avoid language portraying people who use drugs as "physically inferior or morally flawed."

Brazilian federal police on Dec. 28 announced the arrest of José González Valencia, one of the top leaders of the Jalisco New Generation Cartel (CJNG)—the criminal machine that in recent years has risen to challenge the Sinaloa Cartel for control of Mexico's narco trade. Valencia, known as "Chepa" or "El Camarón" (The Shrimp), was arrested at Aquiraz, a resort near the coastal city of Fortaleza, where was spending the Christmas holidays with his family. Authorities said Valencia had been living in Bolivia for two years after fleeing Mexico, and had entered Brazil as a tourist on a Bolivian passport.