Mexico Grants Second Hemp License; Regulations Still Not in Effect

The Federal Commission for the Protection against Sanitary Risks (COFEPRIS) granted Mexico's second hemp license to the company Semillas Endemicas Mexicanna SA de CV. The license, approved in November, authorizes the importation, sowing, cultivation, harvesting, and processing of industrial hemp with a THC limit of 1.0%. The company plans to produce and market CBD, as reported by Planteo.

However, COFEPRIS highlighted the absence of specific regulations for the planting of industrial hemp in the country. "The lack of regulation affecting the seed itself, within its sphere of competence, prevents the assessment of the conditions that allow for the planting of hemp," states the authorization document. Rules to guide other stages of hemp production still need to be established in Mexico.

Legislators have proposed the creation of the Mexican Institute for Cannabis Control, a decentralized body linked to the Ministry of Health, which would be responsible for issuing licenses, supervising hemp and marijuana programs, as well as public education campaigns about cannabis. The proposed provisions also aim to establish social justice programs for small producers and communities affected by cannabis prohibition, allocating 40% of the licenses granted in the first five years to indigenous communities and others impacted by drug criminal laws.

The first hemp license in Mexico was granted to Xebra Mexico, a subsidiary of a Canadian cannabis company, after a court victory against COFEPRIS last year. Xebra Mexico obtained the license following a decision by the Mexican Supreme Court, which deemed the prohibition of cannabis cultivation and processing for industrial uses a violation of the constitutional right to work. Despite initial opposition from COFEPRIS, a federal court upheld the decision, forcing the agency to issue the license.

This judicial decision created a precedent that facilitated the granting of the license to Semillas Endemicas Mexicanna. However, COFEPRIS reiterated that there are still no specific regulations for all phases of hemp processing. A law establishing rules for hemp has been pending in the Mexican legislature for several years, since the Mexican Supreme Court ordered the end of the prohibition on personal possession and cultivation of cannabis nearly five years ago.