Gretchen Lubbe

Cannabis legalization is officially on the table for Mexico in 2021, and that’s seemingly good news for millions of Mexicans - as it could help decrease the country’s rampant narco-violence and create legit business opportunities both locally and internationally. Mexico’s health ministry recently published new rules regarding the legal use of medicinal cannabis, and were reportedly agreed to by Mexican President Andrés Manuel López Obrador. These regulations are quite robust insomuch that they establish regulations for the study and cultivation of medical cannabis, in addition to laying out quality control and manufacturing standards. If Mexico continues to pull through with their legalization bill in 2021, it will undoubtedly have a ripple effect on both local and international cannabis fronts. The question at hand is, however, more precisely one that reflects ‘how’ legalization will affect various communities and entire countries. What Legalization Means for Mexican Society Starting with Mexican Society at large, the key components of the pending recreational cannabis legalization bill are summarized as follows: That adults 18 and older will be able to legally possess and purchase up to 28 grams of cannabis and cultivate up to six plants (eight plants maximum for homes with more than one resident.) To regulate the budding new cannabis industry, Mexican Institute for Regulation and Control of Cannabis will be established Preference will be given to applications by low-income or marginilized communities for cannabis licenses for the first 5 year of legislation. Possession of up to 200 grams of cannabis will be legal maximum amount Consumption will be allowed in homes where all adults have given consent to private use How will the Cartels React? One of the biggest questions on the forefront of Mexican legalization undoubtedly revolves around the extent to which it will affect the nation’s drug trafficking organizations, better known as the cartels. Since the Mexican government started its war on the cartels in 2006, hundreds of thousands have perished or have been adversely affected in the conflict. Now, the country is poised to try the legalization of cannabis in tackling the cartels. One the one hand, we might assume (for various reasons) that legalized cannabis in Mexico will initially have a minor impact on the cartels’ cannabis dealings with the U.S. black market, since cannabis only makes up a small percentage of the cartel’s profits. Mexico's effect on the Global Markets Marijuana legalization in Mexico is similarly expected to be a game-changer for the international cannabis market. If Mexico becomes legalizes both the medicinal and recreational use of marijuana, some observers believe it will create a tipping point for other nations. Mexico's legalization is estimated to mazimize access to legal marijuana for people globally, so creating momentum for legalization efforts world-wide. With that said, Mexico remains set on becoming the world's largest legal cannabis market. The legal changes will turn Mexico into the third country in the world to legalize cannabis nationally for recreational use after Uruguay and Canada, and the largest with a potential consumer market of 88 million adults. Mexico’s effect on the U.S In the same light of hope for an end to violence and the creation of jobs, Mexican marijuana legalization could adversely affect US cannabis companies in the race to expand internationally. With an entire border county about to boom with cannabis dispensaries, the U.S might soon have new competition of note. On the flipside of the above argument, while the quality of Mexican-cultivated cannabis is improving, it’s still not as good as legal cannabis produced by licensed growers in the United States. Arguably, US-grown marijuana is the best in the world, hence, it might still take Mexico some time to catch up. Mexican Marijuana: All Things Considered Whether the legalization of marijuana in Mexico might bring general prices down and so reduce the black market on which the cartel thrives – or not – is to be seen. Whether this law is a magic bullet that will reduce crime and homicides might be a bit too optimistic, though. Nevertheless, legalization will hold many benefits of terms of conviction and opportunity. We can only wait to see how it unfolds.