Canada’s medical cannabis industry is experiencing rapid growth amid increasing global acceptance of the drug as a therapeutic treatment, yet industry leaders say government support for expanding international trade remains limited. Despite generating significant employment and tax revenue domestically, cannabis producers argue that Ottawa has not sufficiently recognized their sector’s potential as an export industry.
The medical cannabis market is expanding worldwide even as recreational cannabis remains tightly regulated internationally, with no legal framework currently allowing for cross-border trade in non-medical cannabis products. Against this backdrop, Canadian companies see opportunities in emerging export markets, particularly in countries that have recently legalized medical cannabis.
One notable example is Ukraine, where medical cannabis was legalized in 2025 after a visit by a delegation led by then-health minister Viktor Liashko to a Canadian-backed Aurora production facility in Germany in early 2024. Ukrainian politician Olga Stefanishyna, a prominent advocate for medical cannabis as a treatment for post-traumatic stress disorder among war veterans, emphasized the importance of learning from Canada’s experience, which has long integrated medical cannabis into veteran care. Analysts estimate that by the end of this decade, Ukraine’s medical cannabis patient population could reach between six and 10 million, highlighting significant import demand due to the country’s lack of domestic production.
Nevertheless, Canadian producers continue to face procedural obstacles. Each shipment of medical cannabis bound for export requires an individual permit from Health Canada, a process that takes four to six weeks, locking up capital in a perishable product. Industry executives are calling for streamlined permitting, such as a “known exporter” fast-track system to expedite repetitive shipments. Additionally, Canadian exports are subject to a 2.3 percent export fee, which some companies argue should be waived to align with exemptions granted to industries like alcohol and certain agricultural products.
James Yamanaka, CEO of Organigram Global, and Michael Martin, CEO of Aurora Cannabis, voiced concerns that the federal government has not shown enough interest or offered sufficient advocacy for the cannabis export sector. Over the past six years, Aurora has not seen senior government officials actively champion its international trade efforts. Yamanaka warned that while Canada currently holds an edge in product quality and regulatory standards, other nations such as Thailand, Colombia, and South Africa are aggressively pursuing export market share and could catch up within a few years.
Thailand presents a significant competitive challenge with well-established indoor cannabis cultivation facilities aiming to meet European Union Good Manufacturing Practices (EU-GMP) certification soon, a standard that Canadian producers like Aurora’s Ontario facility have held since 2020. Martin stressed that while Canadian firms do not seek major financial subsidies, modest forms of export support akin to those provided in other sectors could be pivotal.
In response, the federal government pointed to the efforts of Health Canada and Global Affairs Canada to assist exporters. Health Canada reported receiving more than 4,700 export permit applications during the 2025-26 fiscal year, double the previous year’s volume, and has implemented changes to reduce processing times. Most permits are now issued within eight business days of payment, with 99 percent processed within 30 business days. However, officials note that export authorization is granted only under limited, case-by-case circumstances.
Canada’s international trade minister Maninder Sidhu launched a strategic exports office in July that includes an advisory council of 14 CEOs, though none from the cannabis sector. Global Affairs Canada said it regularly engages with licensed producers through its trade commissioner service and consults with Health Canada on cannabis matters.
Despite these initiatives, industry leaders maintain the sector requires a fundamental shift in government perception—from a solely regulated commodity to a major business opportunity with substantial economic impact. According to a 2025 Deloitte report, the Canadian cannabis industry contributed nearly $30 billion in government revenue between 2018 and 2024 and supports approximately 100,000 full-time jobs, figures close to those seen in the oil and gas sector.
Without increased governmental focus and facilitation, executives warn Canada risks losing its leading position in the global medical cannabis market in the next five years. They argue that with appropriate support, Canadian cannabis exports could grow into a multibillion-dollar industry, but realizing this potential hinges on political will and strategic engagement.