As we have reported in this blog, new legislation to regulate cannabis is in the works here in Mexico. A draft “Law for the Regulation of Cannabis” (the “Cannabis Law”) is under discussion by the Mexican Congress as we write. The Cannabis Law will be accompanied by “Regulations on Sanitary Control for the Production, Research and Medical Use of Cannabis and Its Pharmacological Derivatives” (the “Medical Regulations”), which are also a much-awaited breakthrough for the cannabis industry in Mexico. It has been publicized, however, that neither the Cannabis Law nor the Medical Regulations will provide for regulation of hemp.
We are not surprised. In recent years, much of the debate on cannabis legalization in Mexico has focused on the plant’s recreational and medical uses, but we have not seen the same amount of debate as in other Latin American countries on hemp. To us that seems shortsighted, as the global market for hemp is expected to grow from $4.6 billion last year, to $26.6 billion in 2025. Hemp products span multiple applications and could very well mean the surest way for cannabis to contribute to the reactivation of the Mexican economy post-COVID.
Hemp was prohibited in Mexico due to