Israel has seemingly adopted within the footsteps of its US ally this week after asserting plans to impose 165% tariffs on hashish imports from Canada.
The state’s Ministry of Financial system, spearheaded by the Minister of Financial system and Trade Nir Barkat, introduced this week that it deliberate to go forward with the proposed levies towards Canadian hashish imports, amid ongoing accusations of ‘product dumping’.
In early 2024, Enterprise of Hashish reported that the Ministry had launched an investigation into its home hashish market, following quite a few complaints from native producers that they have been struggling to compete on worth with Canadian imports.
The investigation was launched in January, and a preliminary choice was printed in July revealing plans to impose extreme tariffs on Canadian imports.
In a 126-page ultimate report, printed on November 10, charges beginning as little as 2% for Decibel hashish, 33% for Village Farms (Pure Sunfarms), 39% for Organigram, and 77% for Tilray have been proposed. All different corporations would face a levy of as much as 175%.
Whereas the proposals nonetheless require sign-off from Finance Minister Bezalel Smotrich and the Knesset Finance Committee, it enjoys sturdy help from native producers who declare the inflow of low cost imports has decimated their margins and compelled gross sales beneath price.
Ought to the levy be accredited, it will likely be utilized over four-years, a discount from preliminary options of a five-year tariff.
Whereas most Canadian producers will face the complete 165% charge, a handful of corporations together with Decibel (12%), Village Farms (28%), Organigram (53%), and Tilray (70%), can be topic to decrease duties. These corporations, nonetheless, have already scaled again or halted exports to Israel, that means the overwhelming majority of imports presently coming into the market can be topic to the complete levy if enacted.
Mike Gorenstein, CEO of Canadian hashish operator Cronos, instructed Enterprise of Hashish: “We’re deeply dissatisfied by the choice. The imposition of those tariffs will negatively influence Israeli medical hashish sufferers who profit from aggressive pricing and product range.
“Such tariffs will restrict affected person entry to quite a lot of high-quality hashish merchandise, that are essential for his or her well being wants. As an Israeli enterprise, we now have invested considerably in our operations since 2018 and stay dedicated to delivering worth. This choice undermines innovation, competitors, and entry for individuals who want it most.”
Talking to Stratcann in November 2024, Canadian Hashish Council (C3) President Paul McCarthy mentioned it was inconceivable to ‘acertain how any of those choices have been made, including that there have been main issues over inconsistent comparisons between retail, wholesale, and bulk costs.
C3’s submission to the Israeli authorities revealed that the typical worth of bulk hashish flowers in Canada is roughly CAD$0.96 per gram, in line with information from the Canadian Hashish Change.
In response, the Israeli Ministry of Financial system dismissed this determine, stating that it represents ’low-quality’ merchandise not akin to these offered in Israel. McCarthy countered that this distinction is unfounded, emphasizing the necessity for a correct ‘apples to apples’ comparability.
Canadian opposition to the levy was backed by former Israeli Nationwide Financial Council head Professor Eugene Kandel, who argued that the methodology used to calculate the dumping margin was flawed.
The transfer has additionally drawn opposition internally, with The Ministry of Well being and the Israel Competitors Authority each publicly opposing the levy, warning of unfavorable penalties for sufferers and market integrity. Well being officers argue the transfer may drive up prices, cut back product range, and erode entry
