Argentina Revolutionizes Market by Legalizing Cannabis for Food, Cosmetics, and Health

By Sechat

The president of Argentina, Alberto Fernández, signed a historic decree regulating Law 27.669, marking a significant milestone in the legalization of cannabis in the South American country. From now on, Argentinians are set to enter a new economic chapter, allowing the production and consumption of the plant in various forms, from food to cosmetics.

The legislation, enacted in May 2022, paved the way for the creation of a local production and marketing chain for the plant, its seeds, and its derivatives intended for medicinal use, scientific research, and industrial use. The measure is seen as a result of legislative consensus, stemming from an initiative by the National Executive Power, aiming to meet societal demands regarding the benefits of cannabis for various purposes.

The Argentine government shows optimism regarding the economic results of this new industry, estimating the creation of approximately 10,000 jobs in the first years. This number is based solely on the demand for medicinal products derived from the plant, aimed at about six million potential users. Additionally, the government commits to prioritizing small and medium enterprises, cooperatives, and regional economies.

One of the most notable aspects of the new regulatory framework is the definition of limits for the presence of tetrahydrocannabinol (THC) in cannabis plants. The legislation considers "psychoactive cannabis" those plants that contain more than 1% THC in their chemical composition. This opens the door for the legal manufacture of products based on this substance, as long as they are within the established limits.

The Cannabis Regulatory Agency (ARICCAME) will play a key role in issuing licenses for the production, cultivation, processing, transportation, and distribution of cannabis and its derivatives. The idea is to unify processes and administrative procedures through a single window, simplifying access and dissemination of information related to the industry.

The new regulation also prioritizes gender equality and inclusion. Companies with majority or total national capital, as well as those with female leadership or representation of trans individuals, will receive priority in the granting of licenses and authorizations.

The president of the cannabis business chamber of Argencann, Pablo Fazio, celebrated in a statement the delay in the arrival of the decree, emphasizing that the regulation is a decisive step for the growth of the industry in the country. Fazio highlighted the importance of advancing in determining specific uses and authorizing the marketing of products derived from the plant in various sectors, such as food, cosmetics, supplements, and veterinary products.

“With the regulation finally in effect, Argentina is positioned to become a leader in the production and marketing of cannabis in Latin America, promoting a dynamic and innovative industry that benefits both the public and private sectors, as well as society as a whole,” concludes Fazio.