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Thailand moves to recriminalize cannabis, shaking $1 billion industry

Thailand moves to recriminalize cannabis, shaking $1 billion industry

NBC News2 days ago

BANGKOK — Thailand's government is moving to recriminalize cannabis, plunging into limbo an industry estimated to be worth over $1 billion that has boomed since the substance was taken off the country's narcotics list in 2022.
The push to impose new controls on recreational use of cannabis comes after the Bhumjaithai Party, which championed its legalization, withdrew from the ruling coalition last week following Thai Prime Minister Paetongtarn Shinawatra's apparent mishandling of a border row with Cambodia.
Late on Tuesday, Thailand's health ministry issued an order prohibiting the sale of cannabis for recreational use and making it mandatory for any retail purchase to require a doctor's prescription.
The new rules will come into effect once they are published in the Royal Gazette, which could happen within days.
'Cannabis will be classified as a narcotic in the future,' Health Minister Somsak Thepsuthin said on Tuesday.
Three years ago, Thailand became one of the first countries in Asia to decriminalize the recreational use of cannabis, but without any comprehensive rules to govern the sector.
Since then, tens of thousands of shops and businesses selling cannabis have sprung up across Thailand, many of them located in the country's tourism hubs.
Thai Chamber of Commerce previously estimated the industry, which includes medicinal products, could be worth $1.2 billion by 2025.
Unregulated access to cannabis has created serious social problems, particularly for children and young people, said government spokesman Jirayu Houngsub.
'The policy must return to its original goal of controlling cannabis for medical use only,' Jirayu said in a statement.
The recriminalization push has left some cannabis industry members like Punnathat Phutthisawong, who works at the Green House Thailand dispensary in Bangkok, stunned.
'This is my main source of income,' Punnathat, 25, told Reuters. 'Many shops are probably just as shocked because a lot of them invested heavily.'
The cannabis sector could have transformed Thai agriculture, medicine and tourism, but uncertainty and policy reversals have stymied any sustainable growth, said cannabis activist Chokwan Kitty Chopaka.
'The cannabis industry has become a hostage to politics,' she said.
On Wednesday, there was still a steady trickle of customers — mainly tourists — coming into cannabis shops in Bangkok's Khao San Road area, among them Daniel Wolf, who is visiting from Australia.
'There are shops everywhere, so how do they reverse this? I don't think they can,' he said. 'It's absolutely insane.'

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Ms Paetongtarn has apologised and criticised Hun Sen, saying that all he cares about is 'his popularity'. After the recording was made public, the pro-military Bhumjaithai Party (BJT) announced that it would be withdrawing its 69 members of parliament from its coalition with Ms Paetongtarn's centre-left Pheu Thai Party, leaving her government with barely enough seats to remain in power. In its statement, the BJT called on Ms Paetongtarn to 'take responsibility for causing Thailand to lose its honour, dignity of the nation, the people and military'. As a pro-military party, the BJT's ties with Pheu Thai party – and the Shinawatra family specifically – were already tenuous. Ms Paetongtarn's father, Thaksin Shinawatra, and aunt, Yingluck Shinawatra, both previously served as prime ministers and were both ousted in consecutive military coups in 2006 and 2014, respectively. In the lead-up to the leaked phone call, the Pheu Thai party had also been pressuring the BJT to give up control of the Ministry of the Interior, one of the most prized portfolios during election seasons. 'BJT was haggling with Pheu Thai and it looked like they might have to concede on key portfolios,' said Mr Thitinan. 'When the leaked recording scandal came up, it gave the BJT just the right pretext to pull out.' Pushing out the prime minister The BJT have now said that they plan to submit a vote of no confidence against Ms Paetongtarn when parliament reopens on July 3. However, party discipline in Thailand means that most members of parliament tend to vote along party lines. 'Based on where things currently stand the government has enough MPs to survive, so there would have to be a significant number of defectors to the opposition [for Paetongtarn to lose],' said Ken Lohatepanont, a Thai politics expert and PhD candidate at the University of Michigan. More worrying for Ms Paetongtarn, experts say, are the cases that have been petitioned by Thailand's Constitutional Court, which allege that she committed treason. The court will convene on July 1 and decide whether to dismiss the cases, accept them and allow Ms Paetongtarn to continue serving as prime minister or accept the cases and suspend her from her duties. The court has removed four prime ministers in 16 years, including Ms Paetongtarn's predecessor, Srettha Thavisin, who served for less than a year. If Ms Paetongtarn is ousted, parliament would have to select a new prime minister. However, Thailand's political system requires that her replacement come from the pool of candidates submitted during the country's last election in 2023, which is very limited. The only remaining candidate from the Pheu Thai party is Chaikasem Nitisiri, who is reportedly in poor health and has a history of supporting amendments to Thailand's controversial lese-majeste laws, which criminalise any defamatory or threatening comments about the monarchy. 'While it is unlikely Paetongtarn will be able to remain in power for more than a few months given the mounting political pressure, her strongest asset at the moment is the absence of any viable alternative,' said Napon Jatusripitak, a political scientist specialising in Thailand at the ISEAS Yusof-Ishak Institute in Singapore. Benefit to Cambodia Beyond a major shake-up in Thai politics, another question that has left analysts scratching their heads is why Hun Sen made the decision to leak the phone call in the first place – Thailand and Cambodia are strategic partners and Ms Paetongtarn and her family are believed to be well-liked by the former Cambodian prime minister. 'I'm still slightly puzzled by exactly what Hun Sen thought he would get from this,' said Sebastian Strangio, an expert on Cambodia and the author of Hun Sen's Cambodia. To make matters more confusing, Hun Sen made a number of veiled threats towards Ms Paetongtarn's father and their family yesterday while visiting the border. While Hun Sen had previously referred to Mr Thaksin as a 'God brother', his tone on Saturday was very different. He said: 'Now that I've been betrayed, I feel I must reveal what the Thaksin family did to betray their nation. This is a warning.' A week after releasing the tape, Hun Sen had also said that Thailand 'will have a new prime minister within the next three months', suggesting that he was eager to see a reshuffle in Bangkok. 'The relationship between Cambodia and Thailand is pretty asymmetric. Thailand is a much wealthier country, it's more powerful militarily,' said Mr Strangio. 'So this sort of approach is a way of leveraging Cambodia's relative advantages over Thailand in order to score nationalistic points with domestic political constituents.' Although Cambodia and Thailand have faced border disputes in the past, the leaked phone call and subsequent fallout sparked by this latest incident could have a long-term impact on relations between the two countries, according to Mr Napon. 'Relations between Thailand and Cambodia are likely to remain severely strained for the foreseeable future,' he said. 'The leaked phone call controversy has fundamentally damaged trust between the two nations, not just between the Hun and Shinawatra dynasties.'

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