CRS previously detailed the financial problems that have arisen in state markets as a consequence of federal prohibition in a separate report. Analysts again discussed these conflicts in the new report, explaining how cannabis businesses have been largely cut off from the traditional financial sector even though limited guidance is in place for banks and credit unions.
“Marijuana cultivation in Mexico has declined, along with trafficking into the United States, and some have linked this to changes to state-level marijuana policies in the United States and decreased U.S. demand for lower-quality Mexican marijuana,” CRS said.
Notably, marijuana produced in Mexico is generally considered to be a low-grade or commercial-grade product and of lower quality compared to the marijuana produced in the United States and Canada. “Demand for higher-quality marijuana has generally increased in the United States. Further, it is not just U.S.
“With respect to marijuana, state parties to the U.N. drug control treaties have committed to strict controls on the non-medical, non-scientific cultivation, production, and use of cannabis, cannabis resin, extracts and tinctures of cannabis, as well as organic and synthetic cannabinoids, including THC and dronabinol,” CRS said.