Mexico to Give the Green Light to Recreational Marijuana
Mexico is all set to join the league of countries with Canada and Uruguay by becoming the third country in the world to give legal status to recreational marijuana. The country is nearing its marijuana legalization target date, i.e., October 23, 2019.
On October 10, in the special joint meeting of the Mexican Senate’s Parliamentary Commissions of Justice, Health, and Legislative Study, Senator Julio Ramón Menchaca Salazar promised to lay out the concerned bill’s final official draft by October 17, 2019.
The pooling of several proposals for Mexico’s cannabis legalization has created quite a lot of chaos in the system. However, as per the Marijuana Business Daily, the proposal presented by Olga Sanchez Cordero has been pondered upon in priority. This proposal is also subject to an array of modifications.
While there is a constant debate over the legalization of recreational marijuana in the Mexican territory all this while, the market of medical marijuana, which has been legally permitted since June 2017 is likely to grow at a fast pace in the coming years. According to the Grand View Research, the country’s medical cannabis market space is likely to show a growth rate of 27.7% compounded annually, amounting to $249.6 million by 2025. Vaping medical marijuana is a growing trend in the present time, and post the legalization; it certainly got a boost.
Established marijuana biggies- Aurora Cannabis and Canopy Growth- are adamant about taking full advantage of the future potential of the medical marijuana market. Earlier in December, Aurora broadcasted the news of it taking over Farmacias Magistrales, the strategic step which marked its entry in the Mexican marijuana domain with a bang.
On the other hand, Canopy Growth is working hard to establish itself as a market player in Mexico, Peru, and Columbia via its subsidiary, Canopy LATAM. On January 9, 2019, the firm launched Spectrum Cannabis in Peru. It also owns a fully licensed production hub in Columbia. Now, the platform is laying emphasis on its infrastructural development with an aim to proliferate into the Mexican marijuana market.
The authorization of recreational marijuana in Mexico is likely to result in the sharp reduction of the black-market activities being operated upon in the market currently. Also, this will induce tax-paying enterprises to take part in the concerned industry which will, in turn, profit the tax domain. There is an expected estimate that marijuana legalization will bring $1.2 billion in tax revenue for the government and will also have savings of up to $200 million concerning the enforcement costs figures.
Also, giving legal status to the recreational marijuana industry will make space for ancillary activities that can raise the employment level in Mexico. With the favorable climate and lower labor and production costs, the Mexican cannabis industry is likely to give a tough competition to the North American marijuana market.