Mexico: Supreme Court Cannabis Ruling Marks Progress, More To Do To Establish Functioning Market

On Monday, Mexico's Supreme Court voted down the country’s cannabis prohibition laws in an 8-3 vote.

The passage comes after the Senate and Congress missed several High Court-ordered deadlines to pass revised legislation.

Since 2019, lawmakers had been under a Supreme Court order to pass regulations after prohibition laws were deemed unconstitutional. However, delays halted progress, with legislative disagreements and the pandemic stalling processes.

Progress came in March when the lower House passed legislation but it failed to clear the Senate.

Under the Supreme Court decision, citizens are now allowed legal access to cannabis, negating the previous exclusivity to medical patients. Citizens can now be issued permits for adult use and cultivation through the Health Department until legislation is passed.

The ruling does not approve of citizens turning to the illicit market in the meantime. Rather, cultivation laws allow a person to grow six plants for personal use, with a cap of eight per household.

President Andres Manuel Lopez Obrador responded to the news the following day, saying he supported the measure. He also left open the possibility of issuing a public referendum to the Senate and Congress if legalization fails to relieve drug addiction and violence concerns.

Celebratory Times But More To Be Done

The momentous occasion is being celebrated while advocates say additional efforts are required to establish a legal market that benefits the citizens.

Jorge Rubio, a business consultant to several Latin American cannabis companies, including Medipharm Labs Corporation MEDIF, views the Supreme Court decision positively "in terms of human rights and decriminalization of cannabis in Mexico."

Felipe Sanchez, VP of SōRSE Technology's Latin America operations, said additional reform could come soon enough. "Decriminalization is generally the first step in lifting prohibition."

Sanchez added that SōRSE is looking into meeting the demand for cannabis products in verticals ranging from cosmetics and topicals to edibles and pet products.

While praising the decision, advocates say more must be done.

In a tweet, co-founder of drug policy group Instituto RIA, Zara Snapp, said the verdict marked a historic moment for the country. "We will not stop demanding comprehensive regulation but what a big step."

In an analysis of the ruling, Instituto RIA called the commercial market resolved. "This means that the Declaration cannot affect a regulated market with a perspective of social justice, since it only resolves the issue of self-cultivation."

Rubio noted similar concerns, asking how legalization can occur without approved products. He said the decision is mainly beneficial to activists and a select group of stigmatized consumers.

He stated that seed-to-sale is required for a complete industry, calling the decision a "short vision" of the country's cannabis potential.

Rubio, who expects full regulations during the upcoming legislative period from September to December, posited that if a legal market isn't established during the period, then criminal groups could seize control.

Pressure On The U.S.?

What, if any, impact the Mexican Supreme Court ruling has on the U.S. remains to be seen.

In a press release, NORML deputy director Paul Armentano said the ruling leaves the U.S. isolated regarding federal legislation.

"With these actions by the Court, the United States has become an island of federal marijuana prohibition in North America," Armentano stated.

The U.S. could see its own federal reform coming, with the MORE Act reintroduced in the House in early June.

Photo source: Wikimedia Commons/ProtoplasmaKid

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CannabisGovernmentNewsPenny StocksRegulationsMarketsInterviewInstituto RIASōRSE Technology
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis is evolving – don’t get left behind!

Curious about what’s next for the industry and how to leverage California’s unique market?

Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!

Get your tickets now to secure your spot and avoid last-minute price hikes.