Argentina Presents Cannabis, Hemp Industry Bill: Here's Everything You Need To Know

This article by Franca Quarneti was originally published on El Planteo, and appears here with permission.

The Latin American country of Argentina may soon have a regulated cannabis and hemp industry. On Wednesday, Argentina’s Minister of Productive Development, Matías Kulfas, presented a bill titled, "Regulatory framework for the development of the medical cannabis and hemp industry," within the framework of the Economic and Social Council.

In the presence of counselors, academics, legislators, sector representatives and governors, the minister assured that the bill: "is the result of a long and coordinated effort."

Kulfas' presentation began with some hard data, giving an account of the importance of regulating the activity in Argentina. For example, the fact that more than 50 countries in the world have already advanced with some type of cannabis regulation for medicinal and industrial use and that, by 2024, a global production of $42,700 million is projected.

Why does Argentina have the conditions to be an important producer in the cannabis and hemp industry?

Kulfas answers: "Argentina has a global leadership in agricultural production, a scientific research network, a structure of laboratories, experiences of civil society organizations, incipient development of suppliers and 22 provincial and 80 municipal initiatives."

What benefits would the approval of this hemp and cannabis law bring to Argentina?

According to Kulfas, the benefits will include:

• Health rights: supply of medical cannabis to ensure better access to health.

• Employment: Generation of quality jobs.

• Exports: Potential foreign exchange generation.

• Federal development: Opportunities for productive development in several provinces. Conversion of the tobacco sector.

• Supplier development: Genetics, agro 4.0, technological equipment, phytosanitary products.

• Production chains: Medical cannabis (pharmaceuticals, phytotherapeutics, cosmetics) and industrial hemp (textiles, paper, food, construction materials, etc.).

Additionally, the minister made an estimate of the economic impact that this new regulatory framework could bring.

"It is an activity that can generate 10,000 new jobs (of which perhaps 20% are oriented to research, development and innovation activities); 500 million dollars in sales to the domestic market per year and 50 million dollars in exports per year. It would be a start-up scenario with a strong federal economic impact," he analyzed. 

Pablo Fazio, president of ArgenCann, added: "Argentina must make its regulation a competitive advantage. Our sector can become a strategic asset for the country. This project can be the door for that to happen."

Other key points

The bill proposes the creation of a regulatory agency, ARICCAME, which would regulate, administer and oversee the entire cannabis and hemp production chain. It would also grant and administer licenses for production and commercialization.

On this issue, Alberto Rodríguez Saá, governor of the province of San Luis, made an observation. In his opinion, the enforcement authority should rest with the governors. In this way, according to him, “not everything will be concentrated in the City of Buenos Aires."

Something else to highlight: Special attention will be given to small businesses, cooperatives and regional economies. And, at the same time, a gender perspective will be applied, diversities will be prioritized and special support will be provided to civil society organizations for their gradual adaptation.

"We hope that the organizations that have been working hard in the midst of the prohibition will be protected," said Valeria Salech, president of the NGO Mamá Cultiva.

Meanwhile, another key aspect is that this regulatory framework is not intended to replace Law 27,350, which deals with medical and scientific research on the cannabis plant and its derivatives. Rather, it seeks to complement it.

In this regard, National Deputy Carolina Gaillard mentioned Mamá Cultiva’s efforts and declared: "In presenting this project we are completing Law 27,350, allowing the productive development of medical cannabis, which is a fundamental human right."

What are the issues that this bill does not address?

There are some issues that the bill does not legislate. This is the case of licenses for medical use, which are the competence of ANMAT; self-cultivation, which will continue to be regulated by Law 27,350 and its regulatory decrees; and recreational cannabis use.

During the presentation, Gerardo Morales, governor of Jujuy, spoke in favor of the decriminalization of marijuana: "I believe that after this law will come other challenges that will have to do with a reform in criminal legislation regarding decriminalization, which is the next chapter."

Governor Rodríguez Saá added: "I agree with the Governor of Jujuy, we have to break the paradigm and talk about the decriminalization of marijuana use."

Put Argentina on its feet

Carla Vizzoti, Minister of Health of the Nation, highlighted the expansion of rights in an extremely challenging framework such as the COVID-19 pandemic. "The Ministry of Health has approved nine provincial cultivation and research projects that include a production and industrialization stage," she said.

In an atmosphere of hope and illusion for the future, the presentation closed with some words from Gustavo Béliz, Secretary of Strategic Affairs of the Nation, who reflected, "It is a project that has soul in its genesis and in the dream that implies a different Argentina."

"This is a concrete proposal to put Argentina on its feet. We put it to the consideration of this great community. We hope it will be a contribution to expand and diversify Argentina's productive matrix," concluded Matías Kulfas.

To read and download the full bill, click here.

Courtesy photos

Encuentra nuestro contenido en Español en El Planteo:

• Cómo Comprar Acciones para Principiantes
• Argentina: Mar del Plata Ya No Detiene a Cultivadores de Cannabis para Consumo Personal