The president of Mexico Enrique Pena Nieto released a decree on Monday (June 19) amending the law to effectively allow for the medical cannabis market to enter the country.
The move by Pena Nieto will make it so marijuana products in Mexico will only be allowed as long as it contains 1 percent or less tetrahydrocannabinol (THC)– one of the main psychoactive ingredients in cannabis.
The Secretariat of Health for Mexico is now tasked with designing a system to regulate the use of medical cannabis for research.
According to Pena Nieto’s verdict cultivation of marijuana will not be punishable by the law, so long as the purpose of it is medical or for scientific research.
Potential for established Canadian cannabis companies
Earlier this year, following the approval from the Lower House of Parliament for the medical use of cannabis, an expert for the market in Canada said this move may cause an interest from established Canadian companies looking to expand their business.
You will definitely see interest in companies right away in exporting to the Mexican market and to aiding those companies there in getting things set up,” Aaron Salz, an advisor with Stoic Advisory previously told the Investing News Network “You’ll certainly see partnerships, you’ll see information sharing. I would almost be certain that the regulators will communicate with each other if they haven’t already.”
Despite a lack of a concrete plan from the Mexican government, some companies have taken the opportunity following this announcement to reveal they will attempt to enter the medical cannabinol market in Mexico.
“Through our online sales platform, we will immediately be able to commence distribution and build a footprint within Mexico,” CEO of Isodiol International (CSE:ISOL; OTC:LAGBF) Marcos Agramont said in a statement.
He added the company will attempt to obtain an approval with the Federal Commission for the Protection against Sanitary Risk for a manufacturing permit which will let them produce in Mexico.
Experts have talked about the expansion of the cannabis market worldwide, with this announcement indicating that medical opportunities may open for established companies seeking international expansion–similar to the cases of companies pursuing the Australian and German market.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Isodiol International is a client of the Investing News Network. This article is not paid-for content.