Cannabis Update

November 19^th, 2020, Mexican Senate approved with 82 votes in favor, 18 against and 7 abstentions, the general terms of the Ley Federal para la Regulación del Cannabis (“Federal Law for the Regulation of Cannabis”), as well as certain amendments to the General Health Law and the Federal Criminal Code. The new bill creates the Mexican Institute for the Regulation and Control of Cannabis (the “Institute”), an agency dependent of the Ministry of Health as well as, most probably, the largest cannabis market in the world. Except for ejidos (collective land), the business model tends to be horizontal and the Institute will be in charge of issuing 5 different kinds of licenses: (i) cultivation; (ii) transformation; (iii) sale/commercialization; (iv) research/investigation, and (v) exportation and importation.

The approved bill only regulates recreational consumption and industrial hemp. Medical cannabis was not included in this bill as the amendments to the General Health Law and Federal Criminal Law passed in 2017 are still in force; secondary legislation implementing effectively the use of medical cannabis is expected very soon.

The next steps include the voting on specific articles of the bill by the Senate and, thereafter, the approval by the Lower Chamber. The final action will be the execution by the President and its publication in the Official Daily.

For further information please contact:

Juan Daniel Rodríguez [email protected]

Ana Laura Gurría [email protected]

Luis Enrique Sanchez [email protected]