Think Tank: 'US Weed Will Kick Mexican Weed's Butt if Any States Legalize Pot' David Downs - Smell the Truth
go to original November 3, 2012

A new study released by a respected Mexican think tank finds that cannabis legalization in Colorado, Washington or Oregon this year will lead to such huge price drops and quality increases that U.S. cannabis will completely muscle Mexican pot out the U.S. market.

The Mexico Institute for Competitiveness’ ‘Possible Impact of legalizing marihuana in the U.S.‘ finds that cheap, legal, high-quality sensimilla would seap out of whatever state legalized it, and undercut Mexican “commercial” weed across the country. Cheaper, better, U.S. cannabis would lead to “significant decline in revenues from drug trafficking in Mexican criminal organizations,” IMCO states.

“United States is currently a net importer of marijuana. But [if] one or more states [legalized, the U.S.] could meet most of its domestic demand with domestic production. If this scenario materializes, Mexico would be facing the largest structural shock suffered by drug traffickers since the massive arrival of cocaine in the late eighties,” they conclude.

Mexican cartels stand to lose up to $1.8 billion in annual revenue, they estimate.

“The report, based on previous studies by U.S. experts including those at the RAND Corporation, assumes that Mexican cartels earn more than $6 billion a year from drug smuggling to the U.S.,” Associated Press reports.

Chris Walsh at Medical Marijuana Business Daily finds, “This can be seen as a powerful argument in favor of marijuana legalization, as it would keep marijuana money inside the United States and represent a major blow to the ruthless cartels behind a horrifying wave of violence in Mexico.”

“Opponents of the ballot measures said the study bolsters one of their principal objections, that it will turn any state with legal marijuana into a producer for the rest of the country,” the AP states.

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