MJ Biz
One of Israel’s top economic officials wants to impose tariffs of up to 165% on medical marijuana imported from Canada.
Nir Barkat, the minister of economy and industry, proposed keeping the so-called “dumping tax” in force for four years in an effort to bolster domestic suppliers and mitigate unfair competition, according to Israeli business publication Calcalist.
Dumping taxes are often levied on foreign companies that sell products significantly below the price sold in their country of origin.
Breakdown of proposed tariff rates
The tax, which must be approved by Finance Minister Bezalel Smotrich within 14 days and then the Knesset Finance Committee, would levy the following rates on some of Canada’s largest medical marijuana exporters, including:
- Tilray Brands, 70%.
- Organigram Global, 53%.
- Village Farms International, 28%.
- Decibel Cannabis Co., 12%.
A 165% duty would be levied on all other Canadian suppliers, Calcalist reported.
Tilray, which has offices in Leamington, Ontario, and New York, declined an MJBizDaily request for comment.
A few days before the Israel’s tariff plan came to light, Tilray noted in its February quarterly earnings report that an analysis of potential implications showed that “tariffs should not impact sales.”
Organigram, Village Farms and Decibel did not immediately respond to MJBizDaily inquiries for comment.
‘Action will burden Israeli medical patients’
Mike Gorenstein, CEO of Toronto-based Canadian cannabis producer Cronos Group, blasted the proposal.
“This action will severely burden Israeli medical patients by raising costs and limiting access to essential treatments,” he told MJBizDaily via email.
“Despite submitting clear evidence disproving dumping allegations, which showed our pricing aligns with fair market value, the Trade Commissioner ignored the facts.”
The tariffs, he added, violate the spirit of the Canada-Israel Free Trade Agreement (CIFTA), established in 1997.
An amended trade pact between the two countries, negotiated roughly a decade later, further removed or reduced tariffs on agricultural, agri-food and fisheries products.
“We urge the Israeli government to reconsider this decision, engage in constructive dialogue, and uphold fair competition,” Gorenstein said.
“Cronos remains committed to supplying high-quality cannabis and advocating for equitable trade practices that protect both patients and producers.”
Israel’s previous concerns about Canada
In January 2024, MJBizDaily reported that the commissioner of Israel’s Trade Levies Unit opened an “anti-dumping” investigation concerning medical marijuana imports from Canada after finding “a causal link” between the imports and “damage” to Israel’s local cannabis industry.
As part of that investigation, 10 companies – including Tilray, Organigram, Village Farms, Decibel and Cronos – were required to submit “information, evidence and their arguments,” as well as answer a lengthy questionnaire.
In fiscal 2023, Israel imported roughly 21,000 kilograms (21 metric tons) of cannabis from Canada for commercial and scientific use, according to regulator Health Canada.
Meanwhile, U.S. plant-touching and ancillary cannabis companies are scrambling to mitigate costs and fallout from President Donald Trump’s erratic tariff mandates, which are disrupting the industry’s global supply chain and fueling more economic uncertainty.
Israel threatens tariffs of up to 165% on medical marijuana imported from Canada
