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Argentina Legalizes Medical Cannabis And Hemp To Revive Economy

The Latin American country has high hopes that the legalization of cannabis will bring much-needed cash and jobs to the country after Covid

At the beginning of May, the Argentine Congress passed a bill to establish a legal framework for the establishment of a domestic cannabis industry (cultivation and sale) as well as the export of both medical cannabis and industrial hemp.

The move was backed by the country’s president, Alberto Fernandez, who hopes to create new jobs, increase productivity, and create new kinds of exports for the country, which is now facing a deep economic crisis, post-Covid.

The government believes that the industry could create about 10,000 new jobs in the next two years and create $500 million worth of revenue for the country. They hope that of this amount, $50 million will also be exported.

The country has 8 different varieties of cannabis seeds so it will not have to import them, or seedlings.

Cannabis – A Latin American Export Commodity?

Argentina of course is not the only country now exploring the cultivation of cannabis for economic development purposes – not only in Latin America but globally.

At this point, with the exception of Venezuela, Bolivia, French Guiana, Suriname, and Guyana, the entire continent is engaged in medical cultivation of some kind. Even in these countries, the discussion is moving forward toward other things. Uruguay of course is the only country on the continent where recreational use has been legalized. Indeed, Uruguay was the first country in the world to legalize recreational use.

Beyond this, many countries in Africa are now looking to the crop to boost domestic income via exports and for job creation, starting with South Africa.

The question is, of course, will the demand for cannabis actually be this great, globally. Beyond that, there are many questions about the current sustainability of the industry in developing countries. Yes, the prices of cannabis need to drop, dramatically, but there is also likely to be a “race to the bottom” as countries compete with each other for more valuable markets, like Europe.

In many countries on the African continent, cannabis is increasingly being seen as a replacement for tobacco.

In Latin America, in particular, however, the sustainability of the industry, particularly when considering that rain forests could be further decimated to grow the crop, is still in question.

One thing is for sure, however. “South” economies are now in the middle of a green rush. The question is, however, will this return the gold they hope for?

Why Uruguay’s President Is Wrong About Cannabis

Late last week the President of Uruguay, Luis Lacaille Pou, reportedly stated that it was a mistake for Uruguay to have passed an adult-use legalization measure back in 2013, and subsequently, launched legal adult-use sales four years later. Both moves by Uruguay were the first of their kind by any country on earth since the start of global cannabis prohibition. It’s worth noting that Uruguay’s current President was elected in 2020, well after the country legalized cannabis for adult use.

As expected, cannabis opponents are pointing to the President of Uruguay’s statements as loudly and as often as possible. They are touting it as some type of ‘proof’ that adult-use cannabis legalization does not work, and that the first country to ever legalize cannabis for adult use has buyer’s remorse. According to the President, the government should not be part of the process of growing or selling “drugs” because he considers legal cannabis to be “unprofitable.”

Why Did Uruguay Legalize Cannabis?

When Uruguay passed its national cannabis legalization measure, the public policy shift had three main objectives, two of which were specified in the law itself:

  • Reducing cartel-related violence by moving cannabis into a regulated market
  • Promoting public health through education and prevention
  • Eliminating the catch-22 of allowing possession but effectively blocking consumers from accessing cannabis

Contrary to the spin-doctoring that Uruguay’s President seems to be currently engaging in, the goal of Uruguay’s historic cannabis policy shift was never to maximize profits. Prohibition is a failed public policy, and a regulated model will always be a better approach to cannabis policy.

Drug cartels have caused an enormous amount of misery and suffering in Uruguay and throughout the region. Cannabis is obviously only one of the many facets of a drug cartel’s operations, however, giving consumers a regulated option to legally acquire cannabis hurts cartels’ bottom line to some extent, and from that perspective, legalization is clearly working.

Improve The Legalization Model

Legalizing cannabis purely for monetary gain is not a solid reason for such a public policy change. People should support cannabis legalization because it is the right thing to do being that cannabis prohibition literally ruins lives. No one should ever be subjected to the criminal justice system due to possessing, cultivating, and/or buying a personal amount of cannabis.

With that being said, if Uruguay’s President is truly concerned about the profitability of the nation’s emerging cannabis industry, then he should seek to improve it rather than destroy it. The first thing that the President should seek to do is open up the nation’s cannabis system to tourists. Unlike Canada, Uruguay only allows sales through pharmacies and private clubs, and those sales are only open to residents. That is obviously going to limit the size of Uruguay’s potential customer base and hinder industry profits.

One thing that the President seemed to disregard in his statements is the cost savings to Uruguay by the country no longer enforcing failed public policy. Enforcing cannabis prohibition is expensive. It costs money to pay law enforcement to identify and investigate unregulated cannabis activity. It costs money to then prosecute cases through Uruguay’s court system. Incarcerating people also costs money. When Uruguay stopped enforcing prohibition, it yielded obvious cost savings for the government. Legalization is working in Uruguay, whether the country’s President wants to admit it or not.

Heidi Klum Reportedly Lobbying For Cannabis Legalization In Germany

Pushing for cannabis legalization can come in many forms. Cannabis activists around the globe, out of necessity, have pursued every strategy imaginable in their efforts to try to reform cannabis laws where they live.

In some parts of the world where initiative and referendum processes are in place, activists have gathered signatures in order to put cannabis reform measures in front of voters. It’s largely how cannabis has been legalized at the state level in the United States.

At the national level, legalization has been achieved in Uruguay, Canada, and Malta via the legislative process, meaning, lawmakers passed a legalization measure (not voters). Successful legalization efforts in those countries became a reality largely due to lobbying.

Lobbying lawmakers with the goal of convincing them to pass a legalization measure involves people from all types of backgrounds meeting with lawmakers, educating them, and advocating for reform.

Being that the lobbying process involves getting the ear of one or more lawmakers, obviously, not all lobbyists are seen as being equal. For instance, a country’s famous supermodel is likely to be a bit more persuasive compared to less famous citizens.

With that in mind, there’s a significant political situation developing in Germany where it is being reported that supermodel Heidi Klum recently met with Germany’s current drug czar for the purpose of lobbying in support of legalization. Per RTL (translated from German to English):

“GNTM” boss Heidi Klum (48) came unannounced to the German capital on Friday (May 20) and was seen in the Berlin government district, among other things. The reason: As RTL found out exclusively, Tom Kaulitz ’s wife (32) is said to be campaigning for the legalization of cannabis .

Current photos of the 48-year-old show her in a colorful pants suit, strolling through Berlin in a good mood. On Friday morning, the mother of four was seen in exactly this outfit, among other things, in front of the office of the federal government’s drug commissioner, Burkhard Blienert (56). As RTL learned from a source from the government circles, she is said to have subsequently met with Member of the Bundestag Andrew Ullmann (59). Is the native Rhinelander aiming for a career in politics? To some extent, this theory could be correct, because she is said to have offered herself in talks with politicians as a supporter of the legalization of cannabis.

It does not appear that any notes have surfaced regarding what was specifically discussed in the private meetings between Klum and German lawmakers. It’s also unclear what is specifically motivating Klum to step up her advocacy efforts.

However, the fact that Klum has emerged as a cannabis legalization lobbyist in Germany can only help bolster the chances of legalization happening sooner rather than later.

Cannabis Legalization Plans Emerging in Luxembourg

Luxembourg will unveil the final legislation soon, but the details are now emerging

It has been in the works for the last four years ever since the new government promised that it would progress with cannabis legalization before 2023. Now the details are emerging – both through leaks and now from the government itself. The final draft bill will be made public sometime in June.

According to Minister of Justice Sam Tanson, the bill will allow Luxembourgian residents to grow four plants at home. Beyond this, possession of fewer than three grams of cannabis will be decriminalized.

Trade in cannabis seeds will be allowed, nationwide, because it will make no sense to criminalize seed sales when people are allowed to grow their own.

The announcement noted that it is now easier for Luxembourg to stake its position on this as Germany is also moving forward on adult-use reform. That said, there seems to be no formal cooperation or communication between the two governments on coordinating plans or even advising each other. Apparently, plans for commercial cultivation and sales were dropped in Luxembourg at least because of the prevailing international regulations about cannabis.

Expect, as a result of Germany’s forward movement, for the Luxembourgian government to also expand such rights domestically.

In the meantime, Luxembourg will (at least) match Malta in allowing home grow.

The Impact of German Legalization

As widely anticipated, other countries in Europe are watching – and waiting – for Germany’s stake in the ground on the legalization question.

That legislation is also expected to be drafted and made public sometime this summer – to allow the Bundestag to debate and then pass it by the end of the year. If the Health Minister fails in this task, he will lose his PR budget – so it is unlikely that there will be a significant delay on the German side of the border.

Because the German discussion is absolutely about the commercialization of the recreational side of the industry, which will undoubtedly grow on the basic infrastructure established by the medical cannabis cultivation bid, it is also likely that other countries, starting with Luxembourg and Malta, if not Portugal beyond this, will almost certainly issue similar kinds of regulations.

Given the fact that Covid is receding, governments are running out of time and excuses in tackling this discussion. How quickly such legislation will not only be passed but allow a fully functional market is another question.

Will Suing Governments For Cannabis Legalization Work In Europe?

Large, multi-state operators in the US are teaming up to sue the federal government over reform. Will the same strategy work in Europe?

Several large U.S. companies are teaming up to sue the U.S. federal government over what they claim are unconstitutional limits on their commercial operations across the US. One of the suits will focus on the federal government’s prevention of intrastate commerce. Another will challenge the 280E tax provision blocking the industry from taking tax deductions for state taxes from their federal returns.

The approach is certainly a novel one in the history of cannabis reform.

The question is, could such a tactic work in Europe, and at what level?

Lawsuits Move Policy – But Only So Far

In Europe, legal challenges have already begun to move policy – and on both a country and EU level – but it has been unpredictable so far.

For example, in Germany, a patient legal action directly led to national medical reform in 2017. A current lawsuit hopes to do the same to determine, finally, the legal status of hemp. Recreational legislation may settle this out of court, but lawsuits clearly help to focus legislative attention right now on this issue.

Beyond this, at the EU level, the decision to normalize CBD – namely to redefine it as a non-narcotic substance – went through the court system, rather than being decided initially as policy in a national legislature.

A French case on imported CBD vapes also helped set policy at the EU level about the cross-border trade in CBD.

That said, the European Court of Justice refused to accept the case of Albert Tio in Spain, who was criminally charged and convicted for being a central part of the club movement, presumably because of its implications for recreational reform.

What Happens When Germany Legalizes?

There is clearly a place for such lawsuits after Germany legalizes recreational use. This development will absolutely drive policy across the EU – as Luxembourg has already noted. But when will this translate into similar kinds of lawsuits?

For now, it is too early to tell what might land first. However, with several countries in the EU on the brink of legalizing recreational use, even of the home grow kind, and both Germany and Switzerland in a trade alliance that goes beyond the EU, there is certainly a window of opportunity for legal challenges of this ilk, starting with the free movement of goods.

A non-pharmaceutical provider in Holland, for example, might be able to sue to gain access to the German market. So might a Swiss company. Beyond this, growers in countries like Portugal, Spain and Greece might be able to try to litigate market access for their high THC product, even if of pharmaceutical quality.

Market access is a powerful incentive for change. This in turn is also likely to instigate litigation to allow trade in the first place.

Japan Considers Very Limited Medical Cannabis Reform

Japan’s Health Ministry is considering reforming the nation’s cannabis laws to provide for the legal use of medical cannabis. A panel comprised of Japan Health Ministry experts met last week to continue discussions regarding revisions to Japan’s 1948 Cannabis Control Law. It’s the latest step in what will likely be a very lengthy process to explore legalizing medical cannabis in Japan.

What is being proposed in Japan, if enacted, would only legalize medical cannabis in very limited forms and situations. Only cannabidiol (CBD) would be legalized, whereas tetrahydrocannabinol (THC) would remain prohibited. Even the limited CBD reforms that are being proposed in Japan are being met with some skepticism among health experts in the country for whatever reason.

June 2021 Report

The discussions currently underway in Japan are the result of a report that was released nearly a year ago in June 2021. The report, which was compiled by Japan’s Health Ministry, recommended that CBD be allowed to treat refractory epilepsy. CBD has been found to effectively treat refractory epilepsy, and it is commonly prescribed to help treat the condition in a growing list of countries.

Japan’s current cannabis laws are largely built on the concept of banning parts of the cannabis plant, versus focusing on cannabinoids and limits of cannabinoid content. Banning parts of the cannabis plant seems to be a common concept in the region when it comes to cannabis policy, whereas in Western countries hemp, which is what CBD is largely sourced from, has a THC percentage limit for both harvests and finished products.

Unfortunately, the ministry panel is also recommending that a new law be created that would harshly punish people for simply using cannabis for non-medical purposes, which is a particularly harsh policy. It’s unclear how such a cannabis policy would be enforced, however, it’s a safe assumption that people suspected of having cannabis in their system would likely be automatically tested, which would be a massive invasion of privacy and is a policy that is ripe for selective enforcement.

Why Is Japan So Scared Of Cannabis?

People all over the planet, including in Japan, have used the cannabis plant for medical and/or recreational purposes for centuries. By historical standards, the cannabis plant was only prohibited recently, and even then, the enactment of prohibition was based on harmful political ideology and not on sound science.

Cannabis prohibition is one of the most harmful public policies on earth, and that is particularly true in Japan where cannabis prohibition is being used to ruin many lives. Over the course of the last 8 years, the number of people being arrested for cannabis in Japan has increased, even though cannabis arrests have decreased in many other countries during the same time period. The rise in cannabis arrests culminated in a record being set in 2021, with a reported 5,482 people being arrested for cannabis offenses in Japan during the last full calendar year. Roughly 70 percent of the arrests involved suspects that were teenagers or in their 20s.

The rise in arrests is an indication of heightened cannabis prohibition enforcement by Japan in recent years, although Japan’s government is portraying the rise of arrests as being the result of increased consumption rates. In reality, Japan has one of the lowest cannabis consumption rates on the planet. Consider the fact that only 1.8% of people in Japan report having consumed cannabis during their entire life. Japan doesn’t have a cannabis use problem. It has a cannabis prohibition problem, and that problem will only get worse if Japan enacts a new anti-cannabis consumption law.

The Cannabis Industry Moves Forward In Argentina

Back in 2017, lawmakers in Argentina passed a medical cannabis legalization measure. Unfortunately, that legislation proved to be more symbolic than anything, at least in the three years following the bill’s passage.

The lack of meaningful implementation of medical cannabis reform was largely due to former President of Argentina Mauricio Macri who seemed to do everything in his power at the time to hinder the nation’s medical cannabis program.

The current President of Argentina, Alberto Fernández, later issued a decree in 2020 that increased safe access in the South American country. The decree legalized home cultivation, and also set the stage for Argentina’s legal cannabis industry to emerge.

The decree allowed pharmacies to sell cannabis-derived oils, topicals, and other products, and it directed insurance systems to cover medical cannabis treatments for patients who obtained a prescription.

Earlier this month lawmakers in Argentina passed a measure that would create the framework for a more robust medical cannabis industry in Argentina, including provisions for boosting exports around the world. That bill was signed into law this week. Per La Prensa:

The move, backed by president Alberto Fernández, aims to ensure the safety, quality, control and traceability of the production chain as well as create new jobs, increase productivity and generate new exports for the South American country that is facing a deep economic crisis.

Fernández’s government says the industry could create up to 10,000 new jobs by 2025, boost the domestic market by $500 million and increase export revenues to over $50 million.

Cannabis will be used for medicinal purposes while hemp, which is also derived from the cannabis plant, has multiple uses.

Argentina has now become the latest country to embark on a mission to try to gain as much of a footprint in the emerging global cannabis industry as possible.

The President of Argentina’s predictions may seem bold to some people, however, the job creation and revenue goals are entirely possible if the country proceeds methodically and effectively. Only time will tell if that proves to be the case or not.

Attend The Cannabis Normal! Conference In Berlin Next Month

Germany will never become the first country to legalize cannabis for adult use. That designation will forever go to Uruguay. However, legalization in Germany will ultimately prove to be the biggest cannabis prohibition domino to fall when historians look back on the global cannabis reform movement years from now.

Legalization in Germany is going to usher in a new era for cannabis in Europe and the rest of the planet. Germany’s economy is larger than any other economy on earth with the exception of the United States, China, and Japan. The United States is not nearly as close as Germany when it comes to implementing legalization, and China and Japan remain two of the worst places on earth for cannabis policy.

With news recently surfacing that adult-use legalization will be sped up in Germany according to the nation’s Health Minister, and potential budgetary ramifications if that doesn’t happen, reform is closer than ever. When legalization inevitably happens in Germany, it will be truly historic and will speed up reform efforts everywhere else around the globe.

It is extremely important for cannabis advocates and members of the industry to recognize the efforts of those that have helped bring cannabis reform efforts to this point in Germany, and no organization deserves more recognition than the German Cannabis Association.

The German Cannabis Association (DHV) is a professional cannabis advocacy group led by private legalization activists. Their tireless efforts over the course of many years have made a tremendous impact in Germany and have directly contributed to Germany’s current reform momentum.

DHV was originally founded in May 2002, and per its website, DHV “does not serve personal enrichment, but to make progress in hemp politics.” As DHV also points out on its website, it serves as “a counterbalance to corporate interests and fundamentally opposing forces, such as the police unions.” The DHV team does outstanding work, is extremely knowledgeable, and they are on the frontlines of cannabis reform efforts in Germany on a daily basis.

The German Cannabis Association (DHV) is organizing the third edition of the Cannabis Normal! Conference from June 17th to 19th, 2022 in the Alte Münze in Berlin. The conference’s program will largely involve exploring and discussing the intimate details of the upcoming cannabis legalization measure that is expected to be unveiled in Germany as early as this summer.

In addition to discussing the nuanced details of cannabis policy reform in Germany, hemp will also be a major topic at the event with discussions led by well-known guests from science and politics including drug policy spokesman Carmen Wegge (SPD), Dr. Kirsten Kappert-Gonther (Greens), Kristina Lütke (FDP) and Ates Gürpinar (Left).

It is vital that consumers have a voice in the legalization process in Germany, and fortunately, DHV has developed eleven sessions to cover every important facet of what Germany’s cannabis legalization model should include. It’s a great way to get educated about German legalization efforts and what to expect in the coming months. The information presented will be extremely timely, with upcoming hearings in the Bundestag expected to begin in the near future.

Below are sessions taking place at the upcoming Cannabis Normal! Conference:

More information about the schedule and program of the Cannabis Normal! Go to: cannabisnormal.de

For press inquiries and accreditations please contact Simon.Kraushaar@hanfverband.de

MPs Introduce Cannabis Decriminalization Measure In Lithuania

Lithuania may not be the first place that you think of when it comes to cannabis policy reform, however, efforts to reform the nation’s cannabis laws are underway in the European country, which is located in the Baltic region of the continent.

Last November, lawmakers in Lithuania voted on a measure that would have decriminalized small amounts of all controlled substances. The measure failed to pass.

Lithuania’s Committee on Legal Affairs was tasked at that time with coming up with a more narrowly tailored measure, and what they came up with was a cannabis decriminalization measure that would apply to small amounts of cannabis. Per excerpts from LRT:

The Lithuanian parliament’s Committee on Legal Affairs (TTK) has proposed to decriminalise the possession of small amounts of cannabis.

The new amendments propose to introduce fines, instead of criminal liability, for the possession of small quantities of cannabis.

“I see it as a political compromise. The task of TTK was to improve [the draft] and look for an option for which we would have a majority of votes,” said Morgana Danielė of the Freedom Party.

Lithuania originally passed a medical cannabis measure in 2017, however, cannabis remains criminalized for non-medical purposes.

Adult-use legalization is sweeping the European continent, with momentum picking up after Malta became the first country to legalize cannabis for recreational use late last year.

With that in mind, Lithuania’s reform measure is timid compared to what is being proposed in other parts of Europe, although the chances of this specific measure passing in Lithuania seem to be strong.