Decriminalization.
I'm surprised that no one told me, but Portugal decriminalized all drugs way back in 2001. From all appearances this has been a smashing success. In fact, this seems to have pretty much achieved for the Portuguese what the War on Drugs was supposed to have achieved for America (and didn't).
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I can imagine severe diplomatic problems with the U.S. if Canada were to decriminalize drugs.
There are probably ways in which these adverse consequences can be mitigated.
-- hendrik