A Global Cannabis Exports Leader In The Making? Paraguay Targets THC Reform To Boost Economy

By Lucía Tedesco via El Planteo

Paraguay‘s government, in collaboration with key private sector players, is betting on establishing the country as a leading exporter of cannabis-derived products. The vision is to transform Paraguay into a reference hub for Latin America and the world.

To achieve this ambitious goal, the strategy focuses on legislative reforms and infrastructure investments, with an emphasis on economic and social sustainability. One cornerstone of this initiative is revising the legal framework governing industrial cannabis. Currently, the maximum allowable THC content—the psychoactive compound in cannabis—is capped at 0.5%. However, this limit hampers opportunities in international markets that permit higher concentrations under strict regulations.

Legislative Reforms And Industry Potential

Recently, Minister of Industry and Commerce Javier Giménez visited one of Paraguay's top cannabis manufacturing facilities. He highlighted the sector’s significant potential to boost the national economy, emphasizing a coordinated approach to fostering cannabis development.

Marcelo Demp, president of the Industrial Cannabis Chamber of Paraguay (CCIP) and vice president of the Latin American Hemp Industry Association (LAIHA), underscored this need: “Expanding our legal framework would enable Paraguay to become a supplier of finished products for the region and the world, including markets like Argentina and Brazil.”

The proposed next step involves authorizing products with higher THC content for sale in regulated dispensaries. To this end, the CCIP is working with multiple institutions to introduce a bill ensuring complete traceability from production to sale.

“What CCIP proposes is to legalize THC under the same rigorous controls and traceability already in place for industrial cannabis,” Demp added.

International Competitiveness

Paraguay has already proven its ability to compete in the global market. In recent years, it has exported cannabis-derived products to the United States, Canada, Brazil, the United Kingdom, the Netherlands and other European countries.

Moreover, the country boasts over 20 authorized dispensaries that not only offer legal products but also serve an educational purpose by informing the public about the benefits and applications of industrial cannabis. According to Demp: “Paraguay exports to more than 10 countries, and the opening of local dispensaries has been key to building consumer trust and awareness.”

A Sustainable And Inclusive Approach

Paraguay's cannabis strategy also emphasizes environmental sustainability and social development. The CCIP actively collaborates with small farmers, integrating them into a value chain that promotes responsible agricultural practices and creates opportunities for rural communities.

Looking ahead, the industry envisions diversifying cannabis applications across food, supplements, therapeutic products, cosmetics, and regulated recreational products. Demp highlighted the broader economic and reputational benefits: “By selling finished products in authorized dispensaries and exporting to markets like Argentina, Brazil, the U.S., Canada, and Europe, Paraguay will not only strengthen its economy but also establish itself as a global leader in the sector.”

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