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Tag: Colombia

A Missed Opportunity To Modernize Colombia’s Cannabis Policies

In Colombia, all constitutional amendments must undergo a two-year process, and since adult-use legalization requires a constitutional amendment, all such measures must undergo the multi-year process. An adult-use legalization measure sponsored by Rep. Juan Carlos Losada was successfully working its way through that process, however, the measure came up short this month.

Both chambers of Colombia’s Congress previously approved Rep. Losada’s measure last year, but due to the multi-year process, the bill still required a series of successful votes this year.

The Chamber of Deputies approved the legalization measure again last month, but despite a Senate committee approving the measure this year, the bill failed to receive the necessary 54 votes when receiving full floor consideration. Although, it is worth noting that the bill did receive a majority of votes (47-43).

Rep. Juan Carlos Losada made it clear in a tweet after the bill stalled that he will be back to introduce the measure again next month:

The tweet’s text auto-translates to, “We are not going to give up! We remain firm because we are sure that reaching 8th. debate is historic. With @PizarroMariaJo we will once again file the project to regulate the #CannabisDeUsoAdulto market on July 20.”

It’s unfortunate that the measure has to go back to the starting line and undergo, once again, a two-year process. Hopefully, this next time is a success, as there is clearly a significant level of support for Colombia to modernize its cannabis policies.

Colombia Needs To Improve Its Cannabis Export Regulations

Out of all of the countries on earth, you will be hard-pressed to find a country that is better suited to benefit from international cannabis reform than Colombia, at least from a raw cannabis production standpoint.

It is no secret that for many years Colombia has produced a significant amount of unregulated cannabis, thanks in large part to where the nation is located geographically and Colombia’s climate. Colombia is literally one of the best places on the planet to cultivate cannabis on a large scale, if not the best.

Colombia has a distinct advantage over many other countries when it comes to cannabis production, and that, in turn, makes it a top potential source for legal cannabis internationally. As the South American country tries to transition from an unregulated cannabis industry to a regulated one, a major issue that it needs to address is export regulations.

According to domestic reporting, medical cannabis exporters in Colombia are complaining about lower-than-expected export sales, and they are pointing at government bureaucracy as the reason why the sales are lackluster. Per Bloomberg Linea (translated from Spanish to English):

Sales of medical cannabis products have not met the expectations that companies had in light of issues ranging from delays in registration, permits, banking mechanisms and other regulatory issues, the National Association of Foreign Trade (Analdex) reported on Monday.

Exporters point out that “external sales of cannabis for medical use have been hampered and have been considerably affected.”

Entrepreneurs in the sector occasionally refer to delays in registration with the National Institute for Food and Drug Surveillance (Invima).

In addition, they warn about alleged delays in the processes of the National Narcotics Fund.

If Colombia’s medical cannabis industry is ever going to reach its full potential, the process for obtaining permission from the government to export raw cannabis and cannabis products needs to be overhauled and streamlined.

It is definitely worth noting that not all of Colombia’s export issues are due solely to what is going on within the nation’s borders. International treaties, policies, and enforcement practices also make cannabis exports more difficult in general for any nation, including Colombia. As such, reform is needed at the international level as well.

Cannabis Legalization Clears Another Political Hurdle In Colombia

Colombia has served as ground zero for the Drug War in many ways over the course of multiple decades, largely due to the nation’s cocaine production. It is obviously no secret that Colombia has served as the world’s top source of cocaine for many years, with the United States being a particularly popular destination for the illegal substance.

The Drug War in Colombia has made things harder for the nation’s emerging legal cannabis industry for various reasons, not the least of which is the stigma that comes with trying to legalize a historically banned substance in a nation like Colombia, even though cannabis is obviously not cocaine.

Fortunately, a group of lawmakers in Colombia seems to be set on passing an adult-use legalization measure, and the legalization effort in Colombia is overcoming political hurdles as a result. The latest one occurred a handful of days ago, as initially reported by Marijuana Moment:

A bill to legalize marijuana in Colombia cleared another key hurdle on its path to enactment on Tuesday, advancing through a Chamber of Representatives committee that brings it more than halfway through the legislative process.

The legislation, which the Chamber and Senate reconciled to be identical in December after previously clearing each full body in differing forms, needs to go through eight total stops in the Colombian Congress over two consecutive years. Tuesday’s 26-6 vote by the First Committee of the Chamber marks the fifth stop, sending it to the floor for consideration before returning to the Senate for final votes.

The results of a poll released in September, conducted by Jaime Arteaga y Asociados in Colombia, found that:

  • 91% of survey participants that have used cannabis-based products would recommend it to other people
  • 37% of survey participants have frequented a store where medical and/or cosmetic cannabis products are sold
  • 63% of Colombians believe that ‘sales taxes on cannabis products would improve social investment’

The survey results provided a lot of insight into not only the level of support for Colombia’s emerging cannabis industry but also insight into consumer trends. For instance, the survey found that nearly half of the survey participants (46%) that reported consuming cannabis reported using it in topical form.

If/when Colombia legalizes cannabis for adult use, it’s likely that the types of cannabis products that people use will expand significantly as entrepreneurs work to supply the evolving demand.

Colombian Cannabis Exports Nearly Doubled Last Year

The cannabis world is constantly evolving, particularly in recent years, and there’s no end to that trend in sight. It will be a long time before the dust from the international cannabis industry settles, however, there’s one thing that is likely a safe bet – Colombia will dominate the export market in the future.

Colombia has long served as an international supplier of cannabis, albeit unregulated cannabis. As the international cannabis industry continues to spread, and more markets go legal, many of them will turn to Colombia in an increasing fashion for supply.

Cannabis can be cultivated in Colombia much easier compared to many other countries, with the quality being comparable to what is found in other nations but produced at a fraction of the cost. This last year Colombia ramped up its legal medical cannabis exports considerably, nearly doubling statistics from the prior year on record. Per The New Century:

Bogotá (48%), Cundinamarca (30%), Antioquia (12%), Santander (8%) and Magdalena (2%), were the departments that exported US$8.4 million in cannabis between January and November 2022, which which represented an increase of 96% compared to the same period in 2021, according to figures from Dane.

There are 13 companies that reached 14 countries, where Argentina (40%), Brazil (14%), Australia (12%), Switzerland (7%), Israel (6.5%), the United States (6%) and Germany (5.5%).

“58% of these exports were destined for Latin America and the Caribbean. It is a sector that has significant potential in generating quality employment, especially for women, in different regions of the country. Likewise, cannabis value-added goods have stood out for their quality and innovation,” said Carmen Caballero, president of ProColombia.

It’s going to be very difficult for many other countries to compete with Colombia’s production. In many parts of the world, the cannabis plant can only be effectively cultivated in indoor facilities, and no matter how efficient they are they will never be able to compete with the cannabis flower that is cultivated under the sun or in greenhouses in Colombia.

Cannabis companies around the world would be wise to base their plans on a global cannabis industry that is eventually largely based on some countries cultivating cannabis, some turning raw cannabis into finished goods, and some countries serving as the top market for sales, which occurs with virtually every other agricultural crop.

Medical Cannabis Products Now Covered By Government-Funded Health Insurance In Colombia

In 2022 Colombia’s Health Ministry approved the expansion of health insurance coverage of certain medical procedures and medications, including expansion to cover some medical cannabis products. The effective date for the expanded coverage was January 1, 2023.

While it never seemed to be in doubt that the medical cannabis insurance coverage would ultimately take effect, it was reassuring to see that the new coverage was indeed implemented, with reassurances provided by the Health Ministry.

News of the reassurances came via a press release from Khiron Life Sciences Corp late this week. Below are excerpts from the press release:

Khiron Life Sciences Corp. (“Khiron” or the “Company”) (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), announces that the new Colombian Government has included plant-based medical cannabis products (i.e., Khiron products) in the list of mandatory insurance-covered medications starting January 1st, 2023, as well as the signing of a first-of-its-kind medical cannabis contract with one of Colombia´s largest insurance companies based in the city of Bogota.

Resolution 2808 of 2022 was signed by the Ministry of Health on December 30, 2022. This revision was necessary to remove unintended ambiguities that had arisen whether plant-based magistral preparations from medical cannabis (i.e., Khiron products) were also included in the insurance coverage. This is now once and for all clearly confirmed. The new government is fully committed with the use of medical cannabis as a covered treatment under the Colombian health system.

The Government used this iteration to also validate medical conditions where they find moderate to strong evidence that cannabis is an effective treatment. These medical conditions evaluated by the IETS (Technical Institute of the health Sector) include chronic and neuropathic pain, oncology pain, sleep disorders, epilepsy, and fibromyalgia, which represent the primary conditions treated with Khiron products.

During the first half of 2022, insurance-covered prescriptions represented more than 90% of the Company´s cannabis sales in Colombia. With a patient base of more than 25,000 patients, Khiron will immediately resume filling insurance-covered prescriptions through its Zerenia clinic network.

Alvaro Torres, CEO of Khiron, comments: “Today is a great day for patients in Colombia and Khiron. We welcome the decision from the new Colombian government to categorically mandate insurance coverage for our medical cannabis products. With this decision, Khiron will immediately tackle the backlog of covered medical cannabis products to our patients. In parallel, we have also secured a first-of-its-kind contractual relationship with one of Colombia´s largest government-owned insurance companies for medical cannabis specific healthcare services and dispensation. These two achievements, will allow us to revert to predictable recurring revenues, shorter collection periods and improved cashflow.”

Cannabis Legalization Bill Approved By Colombia’s Senate

Colombia is home to one of the most favorable climates on earth when it comes to cannabis cultivation. Whereas in other areas the cannabis plant requires supplemental lighting and a buffet of nutrients, in Colombia the cannabis plant grows naturally on a large scale.

Cannabis cultivation is not new to the South American country, which historically has served as one of the top suppliers of unregulated cannabis and other banned substances for the global marketplace, particularly in North America.

Advocates in Colombia have made strides in building momentum for cannabis reform in recent years, and that was on display this week when the nation’s Senate approved a cannabis legalization measure, as first reported by Marijuana Moment:

The Colombian Senate has overwhelmingly approved a bill to legalize marijuana nationwide, though there are still more legislative steps that need to be taken before it’s potentially enacted into law.

The bill, which has also already received initial approval in the country’s Chamber of Representatives, was approved on the Senate floor during the fourth round of debate on Tuesday in a 56-3 vote.

The cannabis reform marathon may not have yet reached the finish line in Colombia, however, this is a milestone that is certainly worthy of tempered celebration. As is the case in politics in any country, nothing is guaranteed in Colombia when it comes to cannabis legalization, and legalization still faces a long road ahead.

Part of the political process in Colombia for a bill of this nature is a series of debates that have to be spread out over time. As a result, it’s quite likely that it may take as long as until 2024 for a bill to be finalized. Even then, any delays in the process would push legalization out even further.

As 2022 draws to a close and we head into 2023 it’s going to be very interesting to see where the cannabis discussion goes, both inside of Colombia’s borders, and beyond.

Legalization Moves A Step Closer In Colombia

Colombia has served in many ways as ‘ground zero’ for the war on drugs over several decades, and while cocaine was largely the focus of eradication and enforcement efforts, cannabis has played a significant role in the South American country as well.

Infamous cannabis smugglers in the 1970s, such as Robert Platshorn, would purchase cannabis by the ton in Colombia and smuggle it back to the United States where the ‘Colombian Red’ and other well-known strains would then make their way around North America.

Colombia, along with every other nation in South America, has explored reforming its cannabis laws with a new focus in recent years after Uruguay became the first country on earth to pass a nationwide adult-use cannabis legalization measure. Uruguay initially passed the measure in 2013, however, legal sales would not launch until a handful of years later.

By virtually every measure, cannabis legalization is working in Uruguay. And just as it is working in Uruguay, so too could it work in Colombia. Fortunately for sensible cannabis policy, legalization moved one step closer to becoming reality in Colombia this week, with Senators voting to advance a legalization measure. Per Marijuana Moment:

A bill to legalize marijuana in Colombia has been approved in a Senate committee for the first time, weeks after it also advanced in the country’s Chamber of Representatives.

Lawmakers have met several times in recent weeks to debate the reform proposal, which would amend the country’s Constitution to end cannabis prohibition for adults.

It passed the First Committee of the Senate on Tuesday by a vote of 11-4, though there are still more legislative steps that must be taken before it’s potentially enacted into law.

It’s absolutely worth noting that just because there is support for a legalization measure in general among lawmakers, and even though a measure is working its way through the political process, nothing is guaranteed. Mexico is a great example of that.

Mexico’s Supreme Court ruled years ago that cannabis prohibition as it pertained to individuals was unconstitutional. Lawmakers were tasked with passing a legalization measure and standing up a regulated industry, which has failed to happen so far. Hopefully we don’t see legalization stall in a similar fashion in Colombia and legalization continues to move forward without delay.

President Of Colombia Applauds U.S. Cannabis Pardon Announcement

Last week United States President Joe Biden announced a plan to pardon people convicted of federal cannabis possession charges. It is estimated that the decision will affect roughly 6,500 people.

One question that seems to be lingering out there is what happens to future federal cannabis enforcement practices? Will people still be subjected to arrest and federal charges if/when they are caught possessing cannabis on federal property in the U.S.?

Only time will tell if that proves to be the case. Regardless, cannabis still remains a Schedule I substance in the U.S., although part of President Biden’s announcement involved tasking leaders of his related departments to examine cannabis’ current federal classification level.

The move by President Biden is being criticized by some and being hailed by others. One person that is giving praise to the decision is current the current president of Colombia, Gustavo Petro.

“The White House takes a fundamental step to change the vision of the fight against drugs. The user of marijuana will not be treated as a criminal.” President Petro tweeted days after the announcing of pardons (translated to English).

Cannabis reform is on the move in Petro’s country in addition to other parts of the planet. Colombian lawmakers recently approved a cannabis legalization measure in committee, which is something that President Petro has pushed for. The measure has a long road ahead, however, the fact that it was approved at the committee level is encouraging.

Colombia has long served as a top source for unregulated cannabis, and continues to be so to some extent. Fortunately, there are people in the country working to get the nation on the right side of history, not the least of which is the country’s president.

Committee Approves Cannabis Regulation Measure In Colombia

The cannabis industry is on the move at the global level, and there are few places on earth where that is as evident as in Colombia. The South American country is undergoing a transformation at a steady pace and taking its rightful spot as an international cannabis powerhouse.

So far, Colombia’s industry is based on the medical cannabis industry. Adult-use legalization is a tougher sell in Colombia due to stigma regarding the ongoing drug war, however, as we previously reported support for regulation is building among Colombia’s citizens.

Support for adult-use regulation is also increasing in political circles as well, as evidenced by a recent vote in Colombia. Per Infobae (translated to English):

This Wednesday, September 14, the First Committee of the House of Representatives approved, in the first debate, the constitutional reform project that seeks to regulate cannabis for adult use in Colombia. Juan Carlos Losada, representative to the Chamber of the Liberal Party, was the author of the project that seeks to become a law of the Republic.

The congressman celebrated this first step on his Twitter account. In the social network he assured that he will send a formal invitation to President Gustavo Petro so that the Government joins the discussion, “since he will be in charge of regulation.”

The successful committee vote is just one of the many hurdles that needs to be overcome in order for adult-use cannabis legalization to become a reality in Colombia. With that being said, it’s still cause for celebration, albeit tempered celebration.

To date the only countries that have legalized cannabis for adult-use at a national level beyond just low-THC cannabis are Uruguay, Canada, and Malta.