Mexicans Could Soon Legalize Recreational Cannabis Use
In 2018, with the US Food and Drug Administration approving its first drug derived from cannabis, a significant turnover in public cannabis perception has been made. Also, taking into account that in most American states cannabis still isn’t legal, Canada legalizing cannabis has been a huge step forward as well. What is more, another legalization story is probably about to earn its happy ending. Namely, the Mexican Senate seems to be working on the definite legalization of recreational cannabis.
But, why is that such an astounding piece of information?
If everything goes as planned, in a 5-year period, Mexico could become a market earning $1 billion per year, as per estimates by Arcview Market Research and BDS Analytics based on cannabis stocks that have headed towards Mexico during recent years, purchasing its cannabis producers.
For example, last year, Aurora Cannabis, one of the leading medical cannabis producers from Canada, acquired Farmacias Magistrales, the only licensed supplier of THC containing products in Mexico. At the moment of Aurora’s purchase, Farmacias had set foot on nearly 500 medical facilities with their THC products, and up to 80,000 retails with their CBD products. Although Aurora Cannabis’s focus is strictly on luxurious medical cannabis products, its purchase of Farmacias may give the company an opportunity to be the first to establish itself within a market where recreational cannabis consumption has just been legalized. This is why the following period is crucial for the future of the Mexican cannabis industry.
In October last year, Mexico’s Supreme Court prohibited both cannabis possession and recreational use, and it was not the only time for this verdict to be reached – it occurred five times within a several-year period. Mario Delgado, the Morena party’s leader, has recently suggested that a state-owned company be licensed to control the sale and distribution of cannabis. However, Mexican President López Obrador and Senate leader Ricardo Monreal disagreed with such a proposal. Still, according to Monreal’s predictions, the law could be brought out for approval, and the final outcome should be published by the end of this month.
If cannabis legalization under any circumstances happens to be achieved in Mexico, they will become the third country globally to have approved the recreational cannabis use and distribution, apart from Uruguay and Canada.