Case Study: America's Quality Pot Is Changing The Drug War

Shifting from the outer look to the inner look, there have been some interesting dynamics going on within NAFTA’s trade health as well. Weed is now legalized in 23 states of the U.S and Mexico, where weeds used to be sourced into America is witnessing a reverse flow of weed trade in North America according to the article “America’s Quality Pot is Changing the Drug War”. The U.S is increasingly less dependent on Mexican’s weed supply. In fact, the pot industry in the U.S is thriving to the level that it is intimidating that of Mexico. Though at higher prices, American weed is gaining preference and popularity in Mexico for its quality and variety. Before the legalization of marijuana in the U.S, weeds were sourced mainly from Mexico. Now, on
the contrary, weeds are increasingly being sold from the U.S into Mexico instead while sales of Mexican weeds into the U.S is diminishing dramatically. There are some concerns about this new trade trend. Mexico weed dealers may resort in heroin. U.S pot industry’s growing popularity in Mexico may alter Mexican weed consumption market both economically and culturally. However, there is also a bright side. The pot industry in the U.S can open many opportunities to businesses. Moreover, security forces can now narrow down drug fight to more lethal substances. In Mexico, farmers are replacing weeds with other ordinary farm plants. While some are ready to make the switch, others are upgrading to growing poppies for making heroin. Even worse, Mexican cartels are also focusing on trading heroin.

We think such reverse weed trade trend has reflected the success of weed legalization as it helps reduce illegal cross-border weed deals as well as costs on border security. However, lower sales of weeds in Mexican into the U.S may intensify the drug war as farmers and cartels who use to thrive on weeds may turn to heroin for profit, which is seriously dangerous to social economy and health in both countries. We think that in order for the marijuana legalization to be effective, trade of weeds from the U.S to Mexico should be regulated more strictly and balanced with weed trade flows from Mexico to ensure heroin will not become the next Mexican export after weed. In summary, weed legalization can be a positive movement both in regulatory and international trade environment but regulations should be updated to prevent negative derivatives from weed trade, such as substitutes like heroin, methamphetamine or other drug abuse for money making.