As Canada sets its sights on doubling non-US exports over the next decade, one sector believes it’s being overlooked, despite already contributing hundreds of millions of dollars abroad.
Canada’s cannabis industry, once hailed as a global pioneer, is now calling for federal and provincial governments to recognize its growing export footprint and provide the same level of support granted to other regulated industries.
At the centre of the call is a simple proposition: Canada already has the infrastructure, expertise, and global reputation to dominate the medical cannabis trade, but the absence of coordinated government assistance is eroding its early-mover advantage.
Paul McCarthy, President of the Cannabis Council of Canada, says that requests from industry are clear.
“Simplify and expedite Health Canada’s export-permit process for medical cannabis and derivative products [and also] include cannabis in federal export programs (e.g., Global Affairs Canada trade missions, CanExport) and provincial export strategies,” he said.
Beyond trade logistics, McCarthy highlighted the need for international regulatory cooperation and access to government-backed financing. “[We need to] establish mutual recognition agreements with importing countries to reduce duplicative testing and documentation. This is a tall order but should be undertaken, nonetheless.”
McCarthy added there also should be a way to enable cannabis exporters to access Export Development Canada (EDC) and Business Development Bank of Canada (BDC) services, which are currently restricted, and ensure cannabis trade is represented in Canada’s broader agricultural and health diplomacy efforts.
In other words, Canada’s cannabis exporters don’t just need permission to operate — they need to be treated as legitimate contributors to the nation’s trade ambitions.
McCarthy warns that Canada’s head start is slipping away.
“Canada has been and should continue to be a leader in medical cannabis exports, but there are other countries that are catching up quickly. They are using faster export approvals, lower compliance costs, and active government-backed export strategies to support their cannabis industry,” he said.
The result, he adds, is that “Canada’s regulatory friction and lack of export-promotion tools mean we are steadily losing global market share despite our early-mover advantage and world-class production standards. If the federal government does not support this industry the way it would support any other sector of the economy, we risk ceding high-value pharmaceutical manufacturing, research investment, and thousands of skilled jobs to more agile international competitors.”
When it comes to the mechanics of exporting cannabis, Canada’s highly regulated framework may be too rigid for international trade.
“Canadian licensed producers face several regulatory bottlenecks that make it difficult to scale medical-cannabis exports,” said McCarthy. “Export permits must be issued on a per-shipment basis, often taking weeks or longer, which is incompatible with commercial timelines. Canada’s testing and product-standard requirements are not aligned with many international markets, forcing companies to repeat costly and unnecessary compliance steps.”
He adds that financial tools available to other exporters remain out of reach. “Export-oriented LPs also lack access to trade financing and insurance through EDC or BDC, leaving them at a disadvantage compared to every other Canadian exporter. More broadly, cannabis is excluded from Canada’s trade strategy, despite operating in agriculture, manufacturing, and life sciences. High domestic taxes and compliance costs further undermine the competitiveness of Canadian products overseas.”
Raj Grover, CEO of High Tide Inc., made ripples earlier this year with a Financial Post op-ed arguing that medical cannabis could help Canada achieve its export ambitions. In his interview with StratCann, he emphasized how much is at stake.
“Canada built the world’s most advanced cannabis regulatory system and added $76.5 billion to GDP since legalization, but that advantage is slipping. We urgently need a National Cannabis Export Strategy, just as we do for auto, life sciences, aerospace, and agri-food,” he said.
Grover points to the federal government’s own inactivity. “The industry table created by ISED has not met in over a year, which is a missed opportunity,” he noted. “Immediate government actions should include implementing domestic GMP certification and potency standards. Right now, Canadian producers must get GMP approval individually from each importing country, a costly, duplicative process. Canada should set international quality benchmarks, not defer to them.”
For Grover, the lack of global engagement is equally damaging. He said that integrating cannabis into trade advocacy and economic diplomacy is critical. “At Cannabis Europa in London, the New Zealand High Commission hosted a reception to promote its exporters. Canada had no official representation, despite being one of the world’s top medical cannabis suppliers.”
High Tide recently took a significant step into Europe through its majority acquisition of Germany’s Remexian Pharma GmbH. The move provides the company with a direct import and distribution channel into one of the world’s largest medical cannabis markets.
“Our German acquisition does not depend on government support; it is already structured for success,” said Grover. “Through Remexian Pharma, High Tide now controls a direct import and distribution channel into Europe’s largest medical cannabis market. We will leverage our relationships with Canadian producers to deliver premium medical cannabis at the lowest possible price to German patients, addressing both cost pressure and quality demands.”
Asked about Canada’s future in the global cannabis trade, Grover doesn’t mince words and says that countries like Australia, Israel, Portugal, and emerging low-cost regions are advancing rapidly, with more flexible regimes and active government backing. Also, US producers are already acquiring Canadian firms to stage exports.
“If Canada remains passive, our market share could erode over five years, even as exports surpass $500 million this year, and despite Canada being a top supplier to markets like Germany, the UK, Australia and Poland.”
When asked about whether cannabis exports are being considered as part of Canada’s wider trade and export agenda, a spokesperson for Global Affairs Canada responded to StratCann with this statement:
“The Government of Canada, through the Trade Commissioner Service, continues to support the international business of exporters of cannabis for medical and scientific purposes that have obtained Health Canada permits.”
While that support technically exists, industry representatives argue it is limited to administrative facilitation rather than active trade promotion. There are no cannabis-focused trade missions, export credits, or bilateral agreements to ease market access, tools that other sectors routinely benefit from.
For now, the industry’s message to the government is clear: time is running out.
Canada’s medical-cannabis exports already exceed half a billion dollars annually, with Canadian producers supplying Germany, Australia, the UK, Poland, and beyond. Yet the sector remains largely absent from Canada’s official trade agenda.
As McCarthy puts it, without government alignment, Canada could watch its early-mover advantage slip away entirely. And as Grover’s company expands in Germany, it’s a reminder that while industry can innovate and adapt, policy inertia could determine whether Canada remains a global leader, or becomes a supplier that built the world’s best system, only to let others capitalize on it.