Legalization of Cannabis in Mexico Will Bring Big Opportunities for Some U.S. Hemp Businesses, Heartbreak to Others
At the end of April, Mexico will become the planet’s most populous nation to legalize marijuana and hemp. Unlike America, Mexico is rolling out nationwide legislation to account for all sorts of cannabis, regardless of the THC content. With the nation exporting and importing worldwide where the goods are lawful, the legalization of cannabis in Mexico will bring big opportunities for some U.S. hemp businesses and heartbreak to others. Mexico doesn’t currently allow hemp cultivation.
Other nations that legalized cannabis – Canada and Uruguay – have far fewer people than Mexico. Mexico is a nation of over 130 million people. Canada has almost 38 million, whereas Uruguay has over 3.5 million. Furthermore, Mexico has a rich cannabis history, with extensive experience distributing cannabis throughout the globe.
The United States has prohibited all marijuana products federally. In addition, legal hemp businesses face challenges, especially with respect to banking, capital-raising and taxation. It might take years for Mexico to enact regulations for how marijuana and hemp companies cultivate and how they will legally promote their cannabis products.
Some of Mexico’s largest retail chains are considering carrying CBD drinks and topicals from hemp product manufacturers operating in the U.S. Our business is getting an influx of calls from retailers, wholesalers, vendors and other types of businesses who see major demands in Mexico. We aren’t allowed to list specific companies at this time, out of confidentiality to our partners.
Some independent merchants in Mexico already market American made CBD goods. However, it is not a totally government-regulated marketplace in either nation. Unfortunately, hemp businesses are losing patience with regulators and also have begun to blame the government for layoffs.
Cannabis Businesses in the U.S Will Be Hit Hard By Legalization in Mexico
A lot of U.S. cannabis businesses are going to get hit hard when Mexico legalizes cannabis as they will be surrounded on either side by nations that can also produce legal cannabis on an industrial scale and may export their cannabis goods to other nations that have legalized it.
“Now that México enters the cannabis industry, it will be a huge player. Here cannabis can be grown 3 times a year outside and labor cost is way lower. Furthermore, facilities certified by ISO and for FDA already exist”, says a long time customer of Fresh Bros. from Guadalajara who did not want their identity to be revealed.
Legalization of Cannabis in Mexico is Expected to Take Place Next Month
Legalization of cannabis in Mexico is expected to take place by April 30. That is the deadline that the nation’s Supreme Court placed to get lawmakers to act.
The new laws establish all applications and licenses. It also classifies the 5 kinds of licenses which will be accessible. One for export and import of goods; another for processing; the third for distribution; the fourth for farming, and one for studying the plants.
Though Mexico does not permit hemp farming, it may be imported as raw material for cloth or construction.
A cannabis bureau will be established to help regulate industry and issue licenses. This bureau regulates all the different types of cannabis including marijuana and hemp products.
Adults can own up to one ounce and cultivate four plants. In addition, there will be a limitation of six plants for each family. And, for the first five decades of this proposed program, 40 percent of the nation’s farming licenses go to individuals who show they were hurt from the prohibition on cannabis.