Mexico’s been lulling over how they are going to legalize cannabis and finally, after almost three years of waiting we finally may see a bill become law. Recently, Senators released a bill circulating in the Senate about how they plan on legalizing the plant.
The 55-page document details the holistic approach the government wishes to take on cannabis and at first glance, it seems to be a very extensive and aimed at providing a robust framework for individuals, collectives and commercial enterprises.
In today’s article we’re going to be taking a look at some of the provisions within the document that will allow you to see the overall tone of the Mexican legislation.
Note however, that this is not the final version until it is voted on and made into law. Things may change as lawmakers continue to discuss the proposals.
Personal Consumption and Cultivation
One thing that many activists have been waiting for was for clearer rules in terms of personal consumption, possession and cultivation. It seems that Mexican lawmakers have come to an agreement that adults would be able to cultivate up to six plants per person, and up to eight plants per household – if there are two or more consumers living in the same place.
An adult would be able to purchase up to 28 grams of cannabis per day in a dispensary and dispensaries will be barred from selling more than that amount to an individual in any given day. Over 200 grams of possession can still result in jail time and/or fines.
Personal consumption of cannabis will be a protected right under the Mexican constitution that ensures any citizen the freedom to exercise their personality without harassment from the law.
Cannabis Clubs
Mexico will also have non-profit clubs that can form under the legal definition as an “association.” These associations can have up to twenty members and will have the opportunity to grow up to 80 plants – or four plants per member in any given year.
Cannabis clubs will have to have a strict book keeping, since they need to justify any income that the club obtains in forms of donations, etc. However, these clubs will have the right to grow, harvest, process, consume, and distribute the plant.
This could work well for medical collectives and other independent groups who would like to grow communal cannabis. However, these will strictly NOT be for profit.
Regulatory Agency
In the previous bill, government Diputados – who are like Congress in the US – suggested that the current department for drug abuse be in charge of issuing licenses and the likes. However, Senators rather focused on creating a new regulatory body that will oversee all of the diverse activities within the cannabis market.
The agency will be under the authority of the Ministry of Health and it’s official title would be The Mexican Institute for the Regulation and Control of Cannabis.
Commercial Cannabis
When it comes to commercial cannabis. The legal age of consumption will be 18-years old. This means that Mexico will have the largest eligible cannabis market in the world with between 80 million to 90 million eligible consumers.
The new Mexican law would allow businesses to implement vertical integration – meaning that a single company would be able to create products and control the entire supply chain. However, there is a cap on how many licenses a single person can hold – placing a limit on monopolizing the marketplace. An individual can hold licenses for up to three establishments.
All of the cannabis produced within this market will have to be sent for testing prior to being sold on the market and the legislation covers all forms of commerce. A significant portion (40%) of licenses will be given to communities negatively affected by the war on drugs for up to five years, of which this share would fall down to 20%.
The aforementioned regulatory agency would be in charge of dispensing and validating all cannabis operations within the country. This includes import and export activities.
Foreign companies would be able to invest into the Mexican cannabis market, but preference will be given to local companies first – or at least this is what is suggested.
Pharmaceutical and Research
A large portion of the bill also outlines the activities of the pharmaceutical companies and research companies. This suggests that Mexico is ready to enter into the cannaceutical marketspace, creating the infrastructure to create cannabis-based medicine.
There will be special licenses given to these institutions.
When will we see this voted on?
Allegedly, a vote will take in a matter of weeks – potentially before they adjourn for winter break. At least, this was what was indicated by one of the top Senators within the government.
It seems that the bill is pretty solid and it resembles a lot of what was previously proposed by the Senate albeit with a few changes. Nonetheless, it does seem like the Mexican system is going to be a legitimate contender within the global cannabis space.
Of course, these will be probably a year delay before we begin to see licenses being distributed for commercial reasons, however – by the end of 2022 to the beginning of 2023, Mexico might have a completely functional cannabis marketplace.
What does this mean for the US?
The US is inching towards complete legalization. While the Democrats have been pushing a particular bill for the better part of a year now – in all likeliness they will have to find some middle-ground with the Republican bill if they want to get cannabis legalized federally.
While the Republican bill isn’t as “Social Justice-y” as the Democratic bill, it will allow for “cheap licensing” which will allow smaller players to get their foot in the door. Currently, licensing isn’t cheap in most places that has legalized cannabis in the States – the Republican bill will enable licenses to be obtained in a similar fashion to that of alcohol.
Nonetheless, with Mexico coming online in the world of cannabis – we will have a country with favorable weather condition, rich land and cheap labor creating cannabis products with the ability to ship to the entire world. Mexico’s biggest client will most certainly be the United States and then China.
The US needs to legalize soon – they are out of time.
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