Canada is working to define its future through the One Canadian Economy vision, but a growth engine that could anchor that future of our country is being overlooked. 

A new report from the Canadian Chamber of Commerce’s Business Data Lab and Moncton-based Organigram Global shows that in 2024 legal cannabis contributed $16 billion to GDP, generated nearly $29 billion in total output, supported over 227,000 jobs, and delivered $2.7 billion in farm cash receipts, making it New Brunswick’s most valuable crop, even outpacing potatoes. 

This fast-growing industry delivers billions in value, yet outdated policies continue to hold it back from reaching its full potential and maximizing the value it can add to the Canadian economy.

Cannabis is not niche. With a $16 billion GDP contribution, it has become a significant part of Canada’s economy. It is a coast-to-coast supply chain of growers, processors, manufacturers, transport companies, and retailers creating jobs and economic activity in urban centres, rural regions, and mid-sized communities alike, 

In fact, the sector is already driving growth where Canada needs it most. Cultivation and processing facilities in smaller communities provide stable, good paying jobs. The industry is also building advanced manufacturing capabilities and transferable skills that benefit the broader agri-food and technology sectors. 

Globally, Canada holds a first-mover advantage in an international cannabis market projected to reach $140 billion by 2026. The opportunity is enormous, but only if Canada acts to secure its leadership.

The problem is that outdated policies are choking this potential. Cannabis flower is still taxed as if it sells for $10 a gram, though the real price is closer to $3. Producers also face a patchwork of provincial stamp requirements that add unnecessary costs and red tape. These frictions reduce profitability which in turn stifles research and development, preventing Canadian companies from innovating and scaling, turning a potential export powerhouse into a constrained domestic sector at the very moment Canada needs home grown growth engines.

Government should prioritize public health, but health regulation and economic policy serve different purposes. One protects consumers, the other drives jobs, innovation, and investment. They can and must be balanced – and there is no reason the two can’t co-exist

The policy path is clear. Keep the health and safety standards, but optimize the taxation framework and remove unnecessary regulatory barriers so the legal industry can compete globally. 

Politically, the case is compelling. Governments intervene to protect jobs, boost productivity, and strengthen exports. Cannabis already does all three. Recognizing it as a strategic sector within the One Canadian Economy vision would secure jobs, expand trade, and position Canada as a global leader in another sector.

If Canada fails to act, others will. International competitors are scaling up production, securing intellectual property, and preparing for export. Without reform, Canada will will squander its early lead and risk falling behind competitors who are moving faster to seize global opportunities.

Cannabis is already a serious business. The question is whether Canada treats it like one, or cedes leadership to more ambitious competitors. The choice is stark: embrace cannabis as a pillar of the One Canadian Economy, unlocking jobs, innovation, and exports, or stand by while other nations seize the advantage that Canada built first.