Challenges for the future of cannabis in Mexico

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The Supreme Court of Justice published in the Official Gazette the ruling of the general declaration of unconstitutionality on regulations for the recreational use of cannabis.

The New Frontier Data agency, specialized in the cannabis industry, conducted an online survey on cannabis prices on the Mexican black market, according to the data obtained from the average cannabis user in the country (SPEND, INVEST) 39 pesos per gram, but this figure is only an average since the price ranges by state go from 11 pesos in places like Guerrero or Nayarit to 96 pesos that are paid in Campeche.

Why is it important to have these figures? The simple answer is, to know the size and habits of the national market, but these numbers are becoming increasingly important after July 15, the Supreme Court of Justice published in the Official Gazette the sentence of the general declaration of unconstitutionality on regulations for the recreational use of cannabis. With this, the declaration of unconstitutionality of selected paragraphs of articles 235 and 247 of the General Health Law was formalized, specifically the parts that prohibited the consumption of cannabis and its derivatives, beyond medical use or scientific research.

This will allow cannabis users to apply for permits to legally consume this plant, but without a legal market, the only way to obtain the product would be self-cultivation with all the limitations that this option entails, such as acquiring the seeds. Although self-cultivation is a viable option, it cannot be thought that all cannabis users want or can use it and without a legal market, they will look to the black market, as has been the case until now. Anyone can grow avocados in their yard, but most choose to go to the store to pick out a couple of ripe pieces.

Only in official figures, there are more than 5 million registered cannabis users, but other studies indicate that this figure could easily be double, that is, 10 million Mexicans, who could have access to safe products, who would pay taxes, and who would generate jobs. Now, with the arrival of this black market in e-commerce, the authorities have the titanic task of tracking thousands of accounts that appear and disappear on different platforms and social networks. As long as the law does not regulate a legal market, the situation will continue to repeat itself.

According to the same New Frontier Data report, the government of President López Obrador and legislators in both houses face three main challenges for regulating cannabis. The first is to lay the legal foundations of the market, to determine the quality standards that the product must have so that it can reach the Mexican user.

The second challenge posed by this report is for regulations to strike a balance that takes into account the interests of local businesses, communities, and foreign investment. We must learn from the lessons that happened in markets such as Colombia, where Canadian investment flooded the country.

The third challenge is the impact that cannabis legislation will have in Mexico. In this regard, the study indicates that on a visit the Vice President of the United States, Kamala Harris, emphasized the importance of aligning the policies of both governments around the issue of cannabis. So far that has been the case since the issue is being addressed on both sides of the border as a potential financial and security challenge without the proper legal mechanisms at work.

This is a unique opportunity for the country because according to the report, the success or failure of Mexican legislation will be decisive for cannabis in the world during the following decades.

Source: forbes.com.mx

Mexico Daily Post