US Customs and Boarder Protection officials have issued a statement banning cannabis industry workers and investors from crossing the boarder. The CBP told cannabis industry workers to avoid attempting to cross the boarder as they will be treated as drug traffickers.
This announcement shook Canadian cannabis stocks Friday as investors pulled back. Shares plunged at the opening of the market before recovering later in the day.
Despite the upcoming legalization in Canada, and despite that over 30 states have legalized marijuana in one form or another, the US federal law still classifies cannabis as a schedule one narcotic.
The Canadian cannabis industry is expected to create over 150,000 jobs in Canada alone. This ban on transportation, a relic of prohibition, could create huge problems for the sector if enforced.
However, the amount of resources to check the employment and drug history of every person entering the country would be unrealistic for the agency. According to the CBP, each person will be admitted based on established protocols that have not changed.
Once a person has admitted to using or being affiliated with the cannabis industry they will receive a lifetime ban. If a person is caught in a lie, they will also receive a lifetime ban. One immigration lawyer advised those in this situation to refrain from saying anything.
While the agency does not recognized the cannabis industry as a legitimate income source, only a small number of individuals have been denied entry.