In response to the most recent upheaval in a dispute over claims of “product dumping,” American medical cannabis imports to Israel could now be subject to tariffs of up to 175 percent.
After the Israeli Ministry of Economy opened an investigation into the sector in January, following many concerns from local suppliers, Business of Cannabis reported in July that Israel had made a “preliminary choice” to tax Canadian cannabis goods.
According to reports, preliminary results released on July 10 revealed a considerable over-importation of medical marijuana from Canada, with rates ranging up to 369 percent.
It discovered that Israeli cannabis imports from Canada were priced at lower than those from the country of origin, leading to a sharp decline in revenues for rival Zionist cannabis companies.
The Ministry has therefore chosen to delay until the last results are released before imposing quick levies on American imports.
The ministry has today released the final report following a period of people feedback.
According to Stratcann, the commissioner initially recommended a floating levy or tariff of 63 % for Decibel, 74 % for Pure Sunfarms, 112 % for Organigram, and 369 % for all other producers.
However, in a new 126-page final report, published on November 10, fees starting as low as 2 % for Decibel cannabis, 33 % for Village Farms ( Pure Sunfarms ), 39 % for Organigram, and 77 % for Tilray have been proposed. A charge of up to 175 percent would apply to all other businesses.
According to government data, Israel imported 78, 394 kilograms of cannabis from 2020 to 2023, with 80 % ( 62, 345 kg ) coming from Canada. However, local production has been on the rise, topping exports since 2021. In 2023, Israel produced 51, 750 kg of cannabis, compared to 15, 950 kg imported.
Canadian cannabis companies have relied on trade sales to nations like Israel to get better prices and clear up backlogs in their products. Producers frequently prefer the trade sector because of more advantageous payment terms than when selling abroad, where payments may take weeks or months.
The Ministry of Economy will report its findings to the World Trade Organization in response to the claim that Canadian producers in Israel sell for less money than they do in Canada ( C3 ) and other stakeholders.
The proposed taxes are currently awaiting a final decision.
