CannabisJuicyFieldsArgentina Passes New Law Governing Hemp and Cannabis Industries

May 31, 2022by JuicyFields0

On May 6th, the Argentine House of Representatives passed a bill regulating the development of the cannabis industry in the country. Non-profits, civil service organisations, and the federation of cannabis associations Confederación Cannábica Argentina gave an enthusiastic welcome to this historic decision, hoping this may be the beginning of an eventual complete cannabis legalisation and the introduction of high-quality derivatives into public hospitals throughout the country. Although the Argentine Congress had already passed Law No. 27350 on cannabis access and research, the decision missed the mark and the black market of cannabis derivatives kept growing, introducing products that do not comply with any kind of safety control and fail to meet the expectations of patients who really need them.

This is a landmark decision for Argentina, as the country is now able to venture into one of the world’s most prominent value chains. The bill was supported by the Minister of Productive Development, Matías Kulfas, and everyone involved in this matter pursuing social, research and productive interests. Argentina embraces this piece of legislation and recognises the cannabis industry as an alternative and an opportunity for all regional economies, as is the case with the province of La Rioja, where small producers were casted aside on numerous occasions as a result of the rise of non-industrial commodities. The cannabis industry checks all the boxes of a knowledge economy and a profitable, sustainable industry that entails job creation, a huge variety of products in the value chain, and satisfying the demand for derivatives.

Stimulating the Economy and Creating Jobs

Industrial processes in Argentina have been completely mechanised. Fruits and cereals have also become commodities grown over large areas employing approximately 1 person each 100 hectares. In the case of cannabis, up to 40 jobs are created per each hectare grown because this is still an artisanal value chain in which harvest and the handling of flower crops are carried out manually and making use of many skilled workers.

Although they have not been regulated yet, factories that produce cannabis oil and derivatives are already operating in Argentina as the illegal market is a multimillion business. Under this new piece of legislation, many of these processes will come out into the open and cannabis-derived products will end up hitting pharmacies thanks to emerging companies and projects authorised by the Ministry of Health.
This initiative provides for licences to large-scale entities with legal personality in the production chain, such as private and state-owned companies, public-private partnerships, non-profits, cooperatives, etc. The Argentine people had been already organising ways to become involved through charitable growing clubs, non-profits, and cooperative associations. Now they are hoping that Congress makes it easier for them to do their job, removing all legal obstacles in the chain of production to continue providing cannabis derivatives for patients in need. Argentine law allows and promotes projects funded by the government, private entities, or both together across the many stages in the medical cannabis chain of production. Apart from this, the statute sets forth the Regulatory Agency for Hemp and Medical Cannabis Industries (ARICCAME, by its Spanish acronym). This is a newly introduced government entity that will be in charge of governing and coordinating the cannabis production chain as well as the many stages in the regulatory process.

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