Let’s open ourselves up to the rest of the world. Let’s leave the European sphere. Let’s observe the evolution of the cannabis sector elsewhere. We immediately notice that Latin America could have the fastest-growing cannabis industry.
In this regard, we propose to provide an overview of the leading players, firstly, and secondly, to present some factors contributing to this rapid growth.
Colombia Takes the Lead
Indeed, Colombia could very well become the world’s largest supplier of medical cannabis. This may seem surprising, especially since the country is not very technologically advanced, at least compared to other major Western powers. In fact, the government plans to outmaneuver drug gangs. To do so, it decided to regulate the medical cannabis sector in 2015. From this perspective, for this industry to develop rapidly, it is essential to target the right strategies. With this in mind, the focus has been on reducing production costs and implementing progressive legislation. These two factors, combined with Colombia’s climate and the country’s advantageous location, contribute to the rapid growth of the cannabis industry. All of this makes the country a formidable competitor. It is therefore very favorable to foreign investment, which, in turn, also strengthens and boosts the sector.
Mexico, an attractive hub
Indeed, Mexico legalizes cannabis Medical cannabis in 2017. In this regard, it’s worth noting that the reasons are essentially the same as those in Colombia. That said, it should be noted that the import, sale, and consumption of products containing less than 1% THC are permitted. In this context, Mexico is likely to become one of the main cannabis markets in Latin America. Indeed, the country boasts a population of 128.6 million, 10% of whom receive medical cannabis.
This makes it a gigantic market, and consequently, a focus of interest for investors. In fact, many Canadian companies would like to invest there. Why? Because they see Mexico as a catalyst for the North American cannabis market.
Uruguay: Appealing to investors with a lenient cannabis law?
In fact, Uruguay is sandwiched between Brazil and Argentina, two countries that are relatively more advanced in the cannabis industry. Consequently, it is somewhat overlooked. Major investors are currently absent. Nevertheless, the country is not giving up hope. In fact, to foster the growth of this sector, Uruguayan lawmakers are using a tool that could very well hit its target. What is it? Lenient laws on cannabis for nearly eight years! In just a few years, with government approval, it became the first country to achieve $1.1 billion in annual exports of medical cannabis products.
In reality, this lenient legislation reassures investors. Deep down, they know their investments are safe and that the risk of loss sometimes due to repressive laws is minimal. As a result, they don’t hesitate to invest. Which is simply beneficial for Uruguay. Suriname is joining the ranks of the major players!
Suriname is certainly not one of those countries that would readily come to mind when discussing the cannabis industry. However, nature has endowed it with considerable potential for this sector to flourish. Indeed, the country boasts an excellent climate and low production costs. Therefore, the leaders intend to make good use of this. In this regard, the cultivation of hemp and DPC (drug-resistant cannabis) has already been authorized. Nevertheless, the legalization of medicinal herbs is not yet complete.
However, Suriname has everything it needs to thrive in this sector. Furthermore, its relationship with the Netherlands facilitates exports to Europe. Its location also makes exports to North America easier. Now, it is necessary to wait for the legalization process to be fully completed. The government is still considering the implementation of a regulatory framework. Has Latin America found the winning formula?
Indeed, given this rapid growth of the cannabis industry in Latin America
