When Canada legalized cannabis in 2018, it launched a national experiment in health, safety, and economic policy. Seven years later, the results are clear enough to measure and complex enough to debate. Cannabis has moved from the margins of public life and to the mainstream of the Canadian economy. Yet much of the federal framework that governs it remains frozen in the cautious posture of its early days.
That balance between caution and progress framed Cannabis at the Crossroads, a national policy conference hosted by The Pearson Centre on October 30 at Ottawa’s National Arts Centre. The discussion brought together political leaders, public servants, pollsters, and industry representatives to take stock of legalization and to chart the way forward.
Public Opinion and the Policy Gap
The day began with The Pearson Centre’s CEO, Pam Damoff, welcoming guests and outlining the purpose of the dialogue: to understand what Canadians think about cannabis today, and how public policy can better reflect that reality.
The opening panel, Public Opinion Insights on Cannabis, featured David Coletto of Abacus Data and Craig Worden of Pollara, moderated by Paul McCarthy of the Cannabis Council of Canada. The data showed a country that has largely accepted legalization. Sixty-five per cent of Canadians now support the legal framework, with 41 per cent in full approval, 24 per cent neutral, and only 29 per cent disapproving. Support is broadly consistent across provinces, with Atlantic Canada showing the highest rates of acceptance.
The pollsters also reported that attitudes have stabilized. Concerns about road safety and social harm have not materialized, while optimism about public health and market regulation has grown. Canadians want the legal market to succeed and expect governments to improve it.
According to their findings, four out of five Canadians support stronger action to curb the illicit market. Seven in ten want to see Canada help its cannabis producers compete internationally, and nearly the same proportion believe the excise tax burden should be reduced. When given details about how the excise system works, roughly two-thirds of respondents agreed that both federal and provincial governments should cut hidden taxes on recreational products.
The data suggested that what began as a cautious experiment has become a settled expectation. Canadians want the system to work fairly, transparently, and competitively.
Public Safety and Enforcement
The keynote address was delivered by the Honourable Ruby Sahota, Secretary of State for Combatting Crime. Her remarks centred on the continuing need for enforcement and coordination across jurisdictions. Although the legal market now provides most of the cannabis sold in Canada, illicit products continue to appear through unlicensed retail outlets and online delivery networks.
Sahota described the shared responsibility between federal and provincial governments. Health Canada and Public Safety Canada are collaborating on public education campaigns, while provinces regulate retail and licensing. She also noted that federal money-laundering laws may apply to illegal online sales.
Deloitte has estimated that between 20 and 28 per cent of total sales still occur in illicit markets. The federal goal is to shrink that share further, while maintaining strict controls on youth access and preventing the export of illegal product. The task is complex and multi-jurisdictional, requiring cooperation between law enforcement agencies at every level.
Re-examining the Excise Framework
The next discussion, Examining the Excise Framework, addressed the financial architecture that underpins the industry. The panel included Margaret Brodie of Rubicon Organics, Adam Coates of Decibel, and Rick Savone of Aurora Cannabis, with Nick Taylor-Vaisey of Politico moderating.
Before legalization, the excise model was designed on an assumption that cannabis would sell for eight to ten dollars per gram and be taxed at roughly ten per cent. Market prices, however, have settled closer to three dollars per gram, which means the effective tax rate is now between 30 and 35 per cent. For many producers, excise tax payments are their largest single expense.
Panelists described how the current system, borrowed from the alcohol industry, requires each province to use its own stamp to track legal products. This creates a massive supply chain and inventory management challenge, adding unnecessary cost and complexity. The result is a patchwork that inhibits trade across provinces and restricts working capital for producers.
The recommendation from the panel is to create one national stamp, and to establish a reduced federal excise rate. Many argued that medical cannabis should be exempted entirely, consistent with its therapeutic use. Simplification, they suggested, would improve compliance, reduce costs, and make legal products more competitive with illicit ones.
Closing the Illicit Market
The conference’s fourth panel, Eradicating the Illicit Market, featured the Honourable Bill Blair, Member of Parliament and former Minister of Public Safety; David Lobo of the Ontario Cannabis Store; and Paul McCarthy of the Cannabis Council of Canada. The session, moderated by Allan Woods of the Toronto Star, focused on enforcement challenges and the role of federal coordination.
Legal cannabis has generated more than $76 billion in economic activity over seven years, yet unregulated products continue to circulate. Participants noted that illegal diversion can affect Canada’s trade relations and international reputation, and that stronger collaboration between provinces will require federal leadership.
Many Canadians, however, are unaware of the ongoing presence of the illicit market. Since legalization, most people assume that if cannabis is sold in a storefront or through an online source, it must be legal and regulated. In practice, a significant portion of retail and digital sales still fall outside the licensed system. While some consumers deliberately choose unregulated products for cost or convenience, many others buy in good faith, unaware that they are supporting an illegal market that undermines public safety, quality control, and legitimate businesses.
The discussion returned repeatedly to the need for consistency. When rules differ across provinces, or when enforcement capacity is uneven, the illicit market fills the gaps. Panellists called for clear standards, predictable penalties, and shared information systems that allow regulators and police to act quickly.
Perspectives from Parliament
A later session, Party Perspectives on Cannabis, brought a parliamentary lens to the discussion. Pam Damoff moderated a conversation with NDP Member of Parliament Don Davies and Liberal MP Nathaniel Erskine-Smith.
Both speakers acknowledged the achievements of legalization but agreed that federal policy has not kept pace with the industry’s development. Several areas, such as taxation, product innovation, and research into medical and therapeutic uses, remain constrained by outdated rules.
The discussion also raised the question of departmental responsibility. Health Canada continues to lead on regulation, but many participants suggested that Industry and Agriculture should have greater involvement, reflecting cannabis’s dual role as an agricultural and consumer product. The conversation broadened briefly to include emerging research on psychedelics, indicating a shift toward evidence-based policy rather than prohibitionist reflexes.
Economic Opportunity and Global Trade
The final policy panel, Economic Opportunity – At Home and Abroad, examined the international dimension of cannabis regulation. Allan Woods returned as moderator, joined by the Honourable Yasir Naqvi, Parliamentary Secretary to the Minister of International Trade, and industry leaders Luc Mongeau of Canopy Growth, Tyler Robson of SNDL, and Beena Goldenberg of Organigram.
Speakers agreed that Canada has yet to define a coherent export strategy. The early years of legalization saw oversupply and consolidation, but the market has since stabilized. Canada now has a limited window in which to establish international standards and trade relationships before competitors in the United States and Europe catch up.
The panel emphasized the importance of consumer education and domestic strength. A robust home market, they argued, is the foundation of a credible export platform. Cannabis research, agricultural innovation, and advanced processing already employ thousands of Canadians with scientific and technical expertise. With better policy alignment, these advantages could translate into international leadership.
Key Takeaways
By the end of the day, a few points of consensus had emerged across panels and perspectives.
First, the excise system needs reform. A single national stamp, digital tracking, and a simplified tax rate would reduce costs for producers and increase competitiveness.
Second, oversight should be shared more evenly among federal departments. Health Canada remains essential for public health and safety, but Industry and Agriculture can bring an economic lens that encourages innovation and trade.
Third, enforcement of the illicit market requires continued federal coordination. Provinces manage retail distribution, but national standards and intelligence sharing are necessary to address cross-border and online activity.
Finally, education and public communication remain critical. Canadians support legalization and want to see it succeed. Transparency about regulation, taxation, and product safety will help maintain that trust.
From Legalization to Leadership
Closing remarks were delivered by Kevin Bosch, Chair of The Pearson Centre, who reflected on the maturity of the discussion itself. Seven years after legalization, the tone of debate has shifted from ideology to implementation. The question is no longer whether cannabis belongs in Canadian society, but how to make the framework more effective, fair, and future-focused.
The conference reinforced that cannabis policy touches nearly every aspect of governance: public health, taxation, trade, agriculture, and justice. It also showed how non-partisan dialogue can bridge industry and government, identifying solutions that serve both economic and social goals.
Canada’s experience remains unique in the world. The country was the first major economy to legalize cannabis nationally and continues to provide a model for others considering the same path. To remain a leader, however, Canada will need to modernize its approach — not through deregulation, but through smarter, more coherent policy. As the discussion at the National Arts Centre made clear, the future of cannabis in Canada will depend less on ideology than on good governance. The framework that once managed risk must now foster growth, fairness, and global competitiveness.
