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Thailand just can't make up it's mind on legalizing cannabis....or not.
Thailand is shifting its stance by planning to regulate cannabis without re-criminalizing its recreational use, despite previous promises by the new government to restrict it solely to medical purposes after the elections.
This decision, announced by Anutin Charnvirakul, Deputy Prime Minister and Minister of Interior, and former Minister of Public Health (2019-2023), who advocated for the decriminalization of cannabis, aims to preserve Thailand’s burgeoning recreational cannabis industry. This industry, established with the 2022 decriminalization, was under threat of closure when the new government assumed office last year.
Anutin, who is also the leader of the Bhumjaithai Party, the second-largest faction in Prime Minister Srettha Thavisin’s coalition government, stated that the government would discuss plans for a draft bill to regulate the cannabis industry and its broader uses.
While the details remain uncertain, this regulatory move could halt Srettha’s controversial efforts to outlaw cannabis.
This would be good news for Thailand's thousands of farmers, dispensaries, and consumers, who had anticipated the Narcotics Control Board to categorize cannabis as a narcotic and essentially criminalize it next year.
Thailand has witnessed tremendous expansion in this industry since the legalizing of cannabis for recreational use and the establishment of a gray market, with revenues expected to reach $1.2 billion by 2025. This is causing countries like Japan to re-think their cannabis laws now, too.
However, Minister of Public Health Somsak acknowledged that the ministry's request to categorize cannabis as a narcotic remains alive. Nonetheless, Anutin, a member of the Narcotics Control Board, has promised to fight any reclassification.
Anutin’s strong opposition to Prime Minister Srettha’s efforts to reverse decriminalization has created a political rift within the ruling coalition formed after the 2023 election.
Political Dynamics and the Coalition's Cannabis Controversy
The ruling Pheu Thai Party, led by Srettha, has taken a firm stance against drugs, citing public concerns about the rise in cannabis dispensaries and recreational use among youths.
The decision not to re-criminalize cannabis comes as Thailand’s Constitutional Court prepares to rule on two crucial cases next month, potentially triggering a political crisis. The first case, on August 7, concerns the dissolution of the Move Forward Party, while the second, on August 14, addresses Prime Minister Srettha’s qualifications. If the Move Forward Party is dissolved, its MPs will need to join new parties within 60 days, with the Bhumjaithai Party, led by Anutin, being a likely option. Should Srettha be found unqualified, a new Prime Minister will be selected from five candidates, including Anutin, who is seen as a strong contender due to his political activity and handling of issues such as cannabis reclassification.
The recent agreement to regulate rather than repeal follows weeks of coalition tension.
Srettha’s plan to re-criminalize cannabis has caused friction within his coalition government. The Bhumjaithai Party, the second-largest in the coalition and a key advocate for cannabis decriminalization in its 2019 campaign, is opposing the move. Anutin played a crucial role in the initial decriminalization. However, Thailand legalized cannabis without regulations on cultivation and sales, and Bhumjaithai’s subsequent bill to address this failed to pass before the May 2023 election. Cananbis tourist have flooded to Thailand to check out the new rules and cannabis based businesses.
The decriminalization led to a thriving recreational cannabis industry but also sparked moral concerns and prompted Srettha’s Pheu Thai Party to campaign for stricter controls.
In May, Srettha ordered cannabis to be reclassified as a “category five” narcotic, with a ban effective by the end of 2024.
However, Anutin has criticized this move and pledged to oppose it, arguing for more research before implementing such a drastic measure.
Thus, the shift back to a regulatory approach is seen as a political maneuver to ease tensions between Pheu Thai and Bhumjaithai.
Economic Implications and Impact on Tourism
Since the decriminalization of cannabis, over 1.1 million people have registered for licenses to grow, and tens of thousands of pot shops have opened their doors. The industry is projected to be worth $1.2 billion by 2025 unless new laws restrict it.
With so many cannabis operations, re-criminalization would undoubtedly have an economic impact. Somkiat Nitiketkosol, owner of the "Suan Fah Yim" marijuana farm, emphasized that if the government proceeds with its plan, it must offer assistance to farmers licensed to cultivate marijuana.
Furthermore, 19.6 million international visitors arrived in Thailand between January and July 21st, according to the country's Tourism Ministry, a 34% rise over the same time the previous year. This year, 40 million international arrivals are the goal. One of the main drivers of employment and economic growth in the nation is tourism. Thailand's tourism sector, which is still getting over the epidemic, may be impacted by the categorization of cannabis.
Given that Thailand is a popular destination for medical tourism and wellness travel, many wellness brands quickly upgraded their offerings after decriminalization.
While there are no government figures on how many tourists come specifically to consume cannabis, Kueakarun Thongwilai, manager of a Bangkok pot shop, estimates that at least 70%-80% of his customers are foreigners, primarily from Asian countries like Japan, Malaysia, China, and the Philippines, as well as some from Europe, according to the Associated Press. Singapore's Central Narcotics Bureau has announced plans to randomly test people returning from Thailand. China's embassy in Thailand also cautioned Chinese tourists that consuming cannabis abroad could lead to penalties upon their return, as such actions are considered domestic violations.
It's hard to say if the protests against cannabis re-criminalization, the Bhumjaithai Party's opposition, and the potential impacts on the economy and tourism influenced the Prime Minister's decision to regulate, but they likely played a role.
Bottom Line
Thailand's decision to regulate rather than re-criminalize cannabis marks a significant shift in policy, driven by internal political dynamics and economic considerations. While the ruling Pheu Thai Party initially aimed to impose stricter controls, widespread opposition from coalition partners like the Bhumjaithai Party, the potential economic impact on the thriving cannabis industry, and concerns over tourism implications have influenced the change in approach. The move to regulate cannabis is seen as a strategic compromise to address political tensions and economic concerns, potentially stabilizing the industry and supporting Thailand's growing role as a hub for cannabis-related activities and wellness tourism.
THAILAND FLIP-FLOPS BUT IS JAPAN NEXT FOR CANNABIS REFORM, READ ON...
