Mexico Legalizes Cannabis
Mexico is in the process of legalizing cannabis, and there will be huge implications once the bill passes. Mexico will become the world’s largest cannabis market, and this will help push the global legal cannabis market forward.
Although we initially anticipated a vast amount of business created between Mexico and the United States, it seems that the new bill will limit foreign investment. As it stands, the cannabis market in Mexico is estimated to be worth $1.2 Billion in 2028.
Mexico is fast approaching its marijuana legalization deadline. On October 10, Senator Julio Ramón Menchaca Salazar reiterated the deadline in the special joint meeting of the Mexican Senate’s parliamentary commissions of justice, health, and legislative study.Marijuana Business Daily
If we peel back the layers we can see that Mexico thoroughly understands the importance of legal cannabis. The Mexican Government is being consulted by several organizations on how to properly regulate marijuana. In fact, the ex-president of Mexico sits on the board of Khiron Life Sciences, which is thoroughly involved in consulting the Mexican government.
Earlier this month, lower house majority leader Mario Martín Delgado Carrillo introduced a new bill that would create a state monopoly through a public company named Cannsalud. Last month, Menchaca Salazar introduced a bill that would legalize domestic growing.MJ Biz Daily
What will be interesting is which American cannabis companies will partner with cultivators in Mexico, if any. In addition, it will be interesting to see how the Trump administration will tax cannabis businesses relationships south of the border.
The end of the prohibitionist policy is good for the country,” Senator Ricardo Monreal (President Lopez Obrador’s MORENA party in the upper chamber of congress) said, adding that the bill would regulate personal use and sale of marijuana as well as research into the plant. It also contemplates creation of cooperatives that would grow marijuana plus a new regulatory agency.The Independant
It seems that the government understands the implications of this bill. With Mexico’s sheer size we can expect to witness the construction of growing facilities throughout the region. It will be interesting to see which American companies will attempt to form strong ties with the Mexican government and its cannabis leaders.