Six days ago the cultivation, processing, merchandising and import/export of medical cannabis had been controlled in Mexico, making the united states among the biggest worldwide to own completely legalized medical cannabis.
We have actually written blog that is several (see here and here) about the new Regulations on Sanitary Control for the Production, Research and Medical Use of Cannabis and Its Pharmacological Derivatives (the “Medical Regulations”). We also conducted a webinar for interested parties (replay here) that was so popular we are conducting a follow-up online Q&A webinar this Thursday, March 4(* that is*)th( (register right here! And make certain to submit your concerns once you do.)In advance associated with next webinar as well as perhaps to steer or pre-empt your concerns I want to highlight some of the things I think cannabis businesses interested in Mexico should be doing right now if you plan to participate. These steps can and should be taken in advance of the government’s that is mexican utilization of the Medical Regulations, that may allow companies to secure licenses and initiate operations.
Implications of complete legalization of medical cannabis
As back ground, Mexico’s $1.3 trillion economy could be the second-largest in Latin America and 15th-largest on earth. Mexico has a population of almost 130 million, and a middle that is fast-growing with increasing purchasing power. In addition, Mexico is the second-largest market that is pharmaceutical Latin America while the 11th biggest on the planet, with profits of over $10 billion.
The need for the legalization associated with cultivation, processing, merchandising and import/export of medical cannabis is cannabisOne that is three-fold legalization will strike a strong blow against illegal cannabis activities in Mexico and propel Mexico as an exporter of
products to markets to which it already sells medicines, such as South America, Europe, and the United States.cannabisTwo, legalization provides
businesses with an opportunity to serve and grow the sizable market that is mexicancannabisAnd Three, legalization offers international cannabis businesses an opportunity to establish manufacturing operations in Mexico to leverage the national country’s significantly lower costs.
Next steps for interested cannabis businessesWhat steps should
businesses be taking right now?The passage of the Regulations on January 12
marked the start of a phased implementation of permitted business activities in order to facilitate coordination among the government agencies in charge of interpreting and administering the Regulations.cannabisIt is expected that licensing will be generally available on May 23, 2021, and companies interested in applying for licenses should be preparing the documentation that is appropriate. In addition, needless to say, companies should exactly be deciding what licenses they want and need, structuring their businesses accordingly. This means looking at entity formation, real estate requirements, employment laws and regulations, and supply chain/service provider considerations. All of these have regulatory implications and requirements.
The road map to establishing a* that is( company in Mexico is used other nations and jurisdictions; as somewhere else, companies will need to figure out the particular regulatory demands strongly related their functional model and become careful to dot their “i’s” and cross their “t’s.” It’s understandable, i am hoping, that getting sound advice that is legal a must.
in Mexico has been: when can we expect the legalization of for non-medical use?There are several factors at play, not least that 2021 is an election year in Mexico and politics are a consideration; however, my colleagues and I believe cannabissomething
will happen before the end of this year. Legislation to legalize cannabis for non-medical uses is working its way through the Mexican Congress, and approvals are traveling from the Senate to the Lower Chamber to the working workplace associated with President.
We expect that if we do start to see the legalization of cannabis for non-medical uses this the process of implementation will split into two tracks: one for products with less than one percent (1.0%) THC and one for products with greater than one percent (1.0%) THC year. We expect the lower THC content product track to take around six months to implement and that the higher THC content track shall need as much as eighteen months to implement.cannabisWe Have seen in other jurisdictions that the ongoing companies that are ahead in medical cannabis applications are usually the first (permitted) to move in non-medical applications. Full legalization of
for medical use is a way to provide reassurance to socio-politically conservative stakeholders that cannabis-derived products can make a contribution that is positive culture. Businesses which have gained the trust of regulators, legislators, therefore the public that is general clear advantages as markets open further. The legalization of for medical uses will strike a blow against illegal activities, but undoubtedly some of the organizations in that space will make efforts to legitimize themselves as a result, now is a good time for interested parties to think about moving forward.
From a market perspective. The standard of their products or services might be low in initially some cases, but they will acquire expertise and they will become more competitive. Established businesses will bring expertise and quality to the market that is mexican which for medical (*) items along is forecast to attain $2 billion by 2025.(*)These are exciting times! Please do join us whenever you can for the Q&A webinar this March 4(*)th(*)!(* thursday)