Israel’s Ministry of Economy and Industry has proposed steep new tariffs on medical marijuana imported from Canada, with rates as high as 165%, according to MJBizDaily.
Cannabis tincture.
The move is part of an effort to shield Israel’s domestic cannabis producers from what officials describe as unfair pricing practices. Economy Minister Nir Barkat is calling for the so-called “dumping tax” to remain in effect for four years. The proposal must receive approval from Finance Minister Bezalel Smotrich within two weeks and then gain support from the Knesset Finance Committee.
The proposed tariff rates would vary by company: Tilray Brands would face a 70% tax, Organigram Global 53%, Village Farms International 28%, and Decibel Cannabis Co. 12%. All other Canadian suppliers would be hit with the full 165% duty.
Dumping taxes are typically used to penalize companies that export goods at prices significantly below their domestic market rates. Israel’s Trade Levies Unit began investigating potential dumping of Canadian medical marijuana in January after identifying what it said was a link between Canadian imports and harm to local producers.
In fiscal year 2023, Canada exported roughly 21,000 kilograms of marijuana to Israel for medical and research use, according to Health Canada.
Industry leaders in Canada are pushing back. Cronos Group CEO Mike Gorenstein told MJBizDaily that the proposed tariffs would “severely burden Israeli medical patients by raising costs and limiting access to essential treatments.” He also criticized the Israeli government for ignoring evidence that Cronos’ prices align with fair market value and warned that the tariffs contradict the Canada-Israel Free Trade Agreement, which was amended over a decade ago to reduce such trade barriers.
Tilray declined to comment, while Organigram, Village Farms, and Decibel did not respond to MJBizDaily’s inquiries. Tilray previously stated in a quarterly earnings report that it does not expect the tariffs to impact sales.
