Colombian cannabis declares trade war on Canada and the US

by druginc

Colombian cannabis declares trade war on Canada and the US

“Colombian cannabis has declared war on the trade of Canada and the United States” is the meaning of the new cannabis export law promoted by Colombian President Iván Duque, arguing that the country is beginning to play a leading role in the world market as a key player.

Thanks to this new, more tolerant law, Colombia will become one of the first countries in the world to allow the export of cannabis in its most essential form: the cannabis flower.

The value of this law can only be measured in the billions of dollars and will create fierce competition with Canada in particular.

Canada, the world's largest exporter, is the only country in the world where cannabis, which can be used for its psychotropic effects, is completely legal. The United States, Portugal and Australia have only partial legislation.

Moreover, in addition to having favorable climatic conditions almost 365 days a year, Colombia can produce medicinal cannabis at a price vastly lower than what it costs Canadian growers.

New Colombian cannabis law provides huge potential

The new law puts an end to a strict 2016 regulation that provided for medicinal and scientific uses through licenses issued by the Ministries of Health and Justice. But a ban on dried leaves remained for fear of illegal trade.

Duque recently signed the decree on safe and informed access to the medical and scientific use of cannabis on July 23. This gave the green light for the production of cannabis-based substances, foods or drinks.

But the biggest novelty of the law is that the industry can export the dried flower of the plant, the form of cannabis that is best used and has a market that accounts for more than 50% of the world's medicinal cannabis sales. The regulation also allows the flour to be processed in free zones.

Colombia thus starts taking advantage of its climatic conditions, including privileged solar radiation, with 12 hours of natural light and less fluctuations in temperature and humidity. Operating costs are also quite low than elsewhere, especially in the area of ​​labor. Growing one gram can cost up to six cents, while in Canada or the United States it can cost up to $1,89.

Colombia is also the second largest flower exporter in the world, after The Netherlands, and can use this experience for the new industry.

This cannabis promise has attracted more than $500 million in foreign direct investment to Colombia and the country has the potential to become a global leader in a high value-added industry, both in flower derivatives and the flower itself.

The macroeconomic potential is enormous. Last year, Colombia's medical cannabis exports exceeded $5 million, but could exceed $2030 billion by 1,7, according to forecasts from ProColombia, the government agency for business promotion. A more optimistic price scenario points to more than $2.500 million, which would be even more than that of coffee, the country's first product in non-mining energy exports. That should create 44.000 jobs by then.

Entrepreneurs in the sector confirm: “This is a golden opportunity for companies operating in Colombia. The country has the ability to produce a high quality flower at a very competitive cost and has the potential to disrupt the global market.”

Entrepreneurs in the sector confirm: “This is a golden opportunity for companies operating in Colombia. The country has the ability to produce a high quality flower at a very competitive cost and has the potential to disrupt the global market.”

Sources ao PledgeTimes (EN), MMJDaily (EN), Ruetir (EN), semana (ES)

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