Benelux is an acronym formed from the first letters of Belgium, the Netherlands, and Luxembourg, respectively. It stems from a nearly century-old free trade agreement between Belgium and Luxembourg, which became operational with the Netherlands included in 1948.
The post-World War II bloc became the model for the European Economic Community (EEC), which in turn informed the European Union (EU). With Brussels as the seat of the EU and the European Council, it is the representative heart of the EU, strengthening and improving cross-border cooperation at all levels.
Operating arguably as the most harmonized, progressive and liberal cannabis market in Europe, the Benelux could also become the prototype for the continent's legal cannabis industry.
Take Luxembourg: with a population of around 626,000 and an area of 998.6 square miles, the country is among the smallest in Europe, but also the richest – often cited as the third richest country in the world in GPD per capita ($112,000), after Qatar ($138.9K) and Macau ($113.4K).
Bordering Belgium, France and Germany – and close to the Netherlands – it occupies a leading position in Europe; as recent political initiatives take root, they could push Luxembourg beyond the Netherlands to adopt the most progressive cannabis laws on the continent.
Ready to legalize cannabis last year, the COVID-19 pandemic delayed Luxembourg's process. But it is still expected to happen, and the country now has more time to address some of its concerns, including managing the impact on neighboring states and the undesirable effects of "drug tourism," as seen in the Netherlands. It remains confident. The small country's Health Minister, Paulette Lenert, has urged Luxembourg's neighbors to moderate their cannabis legislation in line with its future plans, and demand for medical cannabis in the country is high this year due to the virus, with more cannabis being prescribed than in 2019 and showing a sharp increase in demand since its parliament approved medicinal cannabis in mid-2018. Prescriptions began last year, with an evaluative study to follow in 2021.
Belgium, Luxembourg's largest neighbor, is also poised for further liberalization – partly due to a legal anomaly that is prompting some reassessment within the country. Because of a classification loophole that allows hemp-derived products to be marketed as CBD, shops can sell cannabis flowers with low THC (less than 0.2% THC) to consumers, and to meet the demand, a new ecosystem of shops has emerged, drawing comparisons to North American dispensaries and Dutch coffeeshops.
The Belgian Treasury took note of the increased tax levies on the burgeoning new economy of two-gram smokable bags and regulated the industry as a tobacco product rather than a food item, thereby securing a larger tax revenue, estimated at 31.5%. The cannabis itself is imported from non-EU Switzerland, which also employs similar tobacco taxation and operates outside EU law. This led to Belgium becoming the first European country to legalize cannabis flowers, both by stealing a march on Luxembourg and by shifting towards a Dutch-style culture of recreational tolerance.
It is curious that of the three Benelux countries, Belgium was the slowest to join the cannabis revolution. Yet, interest in the country is accelerating. In 2015, Belgium legalized CBD and medical products like Sativex, and while possession remains illegal, personal use laws dating back to 2003 mean Belgians can use small amounts of less than three grams without prosecution. Even growing the plants is legal, though strict limits on THC, scale, and age restrictions apply. There is also a growing gray area of Spanish-style social clubs, and Belgium's intentions were on display last year when the Federal Agency for Medicines and Health Products called for the establishment of a cannabis administrative office to oversee commercial cultivation and production. As with Germany, Belgium has drawn up plans to increase domestic cultivation of medicinal cannabis to around five tons per year. In a new development, the country claims to have the first commercial line of cannabis bread in Europe; made from cannabis seeds, Cannabread is available this season in Brussels.
The Netherlands, as recently reported, is also trying to integrate its cannabis laws and drive out the long-standing criminal activity in its coffeeshop sector, which relies on purchases from illicit sources.
In accordance with EU legislation which requires states to establish a cannabis agency in accordance with the 1961 United Nations Single Convention on Narcotic Drugs, the role of cannabis agencies in each Benelux country remains crucial in determining how policy could be harmonized across the mini-bloc.
Behind the scenes, the Dutch Office for Medicinal Cannabis (BMC) is examining applications to cultivate cannabis for both medical and recreational use, aiming to better coordinate and govern its own industry while also working to eliminate some of the ambiguities that have long plagued the country, which is the original European cannabis-friendly nation. In the future, the Netherlands' initiative could impact its Benelux counterparts, as each country seeks to secure supplies before the 10 producers who will supply the country. Given the move towards greater liberalization and coordination across the borderless Benelux region, it is reasonable to speculate that the bloc could be the first region in Europe to harmonize its cannabis policy.
The CBD.fr team would like to inform you that this article was published on the New Frontier Data website (link: https://newfrontierdata.com/) on October 26, 2020 – Written and posted by Chris Hudock. For your convenience, we have translated this article into French.
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