The Mexican Senate’s refusal to consider recreational cannabis legislation disappoints us: this is what cannabis companies should do now
in my final post I reported that the Mexican Senate refused to resolve the Supreme Court’s 2018 directive to pass reforms legalizing recreational use of marijuana in the just-concluded legislative session.
Unless you are a Mexican senator or a Supreme Court judge, you may not have much leverage to accelerate the implementation of legislation that will support the development of the legal cannabis industry. However, when marijuana is finally fully legalized, there are steps you can take to put yourself in a good position.
Remember that medical marijuana is fully legal in Mexico (that is, not only stipulated in general regulations, but also with implementing regulations).As we reported Here, Mexico’s medical regulations cover:
- Control, promote and sanitary supervision of cannabis raw materials, pharmacological derivatives and drugs, and manage activities including primary production for manufacturing and supply;
- Production of raw materials for research and seed production;
- Health and pharmacology research; manufacture of pharmacological derivatives and drugs;
- Medical activities related to diagnosis, therapeutic care, rehabilitation and palliative care, and;
- Import, export and marketing of medical marijuana products.
Individuals and companies can carry out all these activities with relevant licenses or permits.
However, regulators have not fully caught up with the law. The “Medical Regulations” require current institutions to issue implementation guidelines, but this has not yet happened.Although as we mentioned Here, This is not only legally feasible, but you have the right to apply for a permit/license in any specified field, and the current institution has not been granted a grace period for issuing guidelines. We have seen companies obtain licenses through multiple channels. [A note: cannabis supplements are unlikely to be considered medicine by COFEPRIS, and therefore businesses are unlikely to be able to obtain the health registration authorization necessary for their import and merchandising in Mexico.]
Another way I like is industrial hemp, which has less political influence than recreational hemp.As i reported Here, Mexico’s General Sanitation Law now stipulates that any cannabis derivative with a concentration of 1% or lower THC that has a large number of industrial uses can be sold, exported, and imported “in accordance with the requirements of applicable sanitary regulations.” . These provisions should have been included in the Cannabis Act, but they are clearly not. Therefore, cannabis is still a legal but unregulated industry in Mexico, which in turn means that cannabis-related activities (commodity sales, import and export, and production and processing) are legal in Mexico-even without cannabis regulations. Cannabis specific license. Nevertheless, I recommend applying to COFEPRIS for general authorization to carry out these activities.
Finally, consumers can also apply for a cannabis cultivation/consumption license for personal use through COFEPRIS. protection If your initial permit application is unanswered or denied, take action (ie, a lawsuit in federal court asking the government to defend its actions).By submitting a copy protection In the lawsuit, you argued in the Mexican Federal Court that the Mexican Supreme Court has declared that it is unconstitutional to prohibit the use of cannabis for individuals, and therefore COFEPRIS’s failure to issue a cannabis cultivation/consumption license for personal use violates your constitutional rights.
My bottom line: If you are interested in taking the lead in the Mexican cannabis industry, medical marijuana provides a completely legal and regulated opportunity that you can use immediately. Establishing a medical marijuana business will enable you to develop your operational infrastructure, secure capital (if needed), and position yourself as an insider when Mexico finally opens up its cannabis industry completely. Another good opportunity that requires careful legal preparation is industrial hemp.
As i am in mine Previous post, Mexican state legislators have different views from their federal counterparts on cannabis. It is said that legislators in many states are drafting legislation to pave the way for the establishment of a legal industrial hemp industry. As in the United States, full legalization of cannabis cultivation and distribution seems inevitable, and it is understandable that interested stakeholders want to be prepared when the door opens. What should you do?
Set up your company in Mexico
How do you start?In addition to simple business registration, you should also Register your brand name and logo as a Mexican trademark as soon as possibleI urge you not to delay these two things, because most government agencies in Mexico are under-staffed, under-funded, and very slow in response time. You also need to consider the time required to translate and legalize the documents you need. Since cannabis permits/licenses are not transferable, it almost always makes sense to set up your Mexican company before you apply for any cannabis permits or licenses.
Drafting a business plan
I know this sounds like a cliché, but I can’t tell you how many times we have dealt with actual or potential customers who “just want to do something with marijuana now because marijuana is about to be legalized”. It is important that your Mexican cannabis business plan takes into account what is actually legal in Mexico and your actual resources and capabilities.
With this, I am not just referring to supplements, foods, etc. (this was not legal in Mexico before the cannabis law was passed). Consider an actual manufacturing industry: Unlike the medical or adult cannabis use industry, industrial cannabis is much less politicized in Mexico, and it is relatively easy to form a Mexican cannabis company and insert it into Mexico’s existing value chain.
Don’t forget that if you know how to make it work for you, the lack of regulation in Mexico may be a blessing in disguise. Mexico’s lack of cannabis regulations means that application fees are low or non-existent, and there are few government requirements that must be met. The absence of regulation also means that there is no foreign investment cap.
As always, if you contact me directly, I will be happy to answer questions or discuss specific details.