The Paths to the Cannabis Market in Brazil

Column by Marcelo De Vita Grecco*

Major global powers in the more advanced markets are embracing the possibilities offered by the legal cannabis industry. Typically, the entry point is the opportunity to improve the quality of life for patients suffering from various types of illnesses through the medicinal use of cannabis. In a way, this script is also present in Brazil, but the developments are slow, much slower.

Nationally, the legislative framework for cannabis is being debated around Bill 399/2015, which also originated with a focus on access to medications and also provides for the authorization of cultivation. This moment should be a milestone to determine whether there will be approval in a vote or if the proposal will be shelved.

Nationally, the legislative framework for cannabis is being debated around Bill 399/2015, which also originated with a focus on access to medications and also provides for the authorization of cultivation. After delays due to the pandemic, the Special Commission on Cannabis Formulated Medicines of the Chamber of Deputies resumed its work, and the reading of the substitute report for the bill will take place on the 20th. This moment should be a milestone to determine whether there will be approval in a vote or if the proposal will be shelved.

Regardless of the outcome in the Legislative Power, it is important that the people mobilized to develop the ecosystem of the legal cannabis industry's production chain do not lose focus on fundamental initiatives for market development.

If the Bill is approved, we will have advancements and some aspects facilitated. Starting with access to raw materials, as acquisition without being dollarized brings greater freedom for the development of research and products. Additionally, it reduces legal uncertainty and customs barriers for export. Consequently, many opportunities could be seized, both by agribusiness and the pharmaceutical sector and other segments of the industry. There is also another important point, in case of approval of the bill, which lies in greater access to the banking and financial system.

If this process in the chamber does not result in approval, it is important to understand that the impact on the development of new businesses will not be prohibitive. I remind you that currently, only two countries in the world have more comprehensive federal legislation: Uruguay and Canada.

If this process in the chamber does not result in approval, it is important to understand that the impact on the development of new businesses will not be prohibitive. I remind you that currently, only two countries in the world have more comprehensive federal legislation: Uruguay and Canada. Mexico is about to join this group and will come strong to explore the full potential of cannabis. However, for now, they are exceptions.

It is also worth considering that 90% of everything that happens in the corporate world involves some judicial process, to a greater or lesser degree. Thus, there are ways to develop businesses, including their research. Furthermore, globally, cannabis has been breaking down barriers raised by prejudice. The step taken at the end of last year by the United Nations (UN) indicates a gradually increasing openness in the path concerning research and applications.

Without the approval of Bill 399/2015, it will also be necessary to implement a “plan B” towards obtaining regulatory milestones. In this sense, the ideal would be to segment the objectives for new parliamentary fronts, with specific paths for cannabis and hemp.

Without the approval of Bill 399/2015, it will also be necessary to implement a “plan B” towards obtaining regulatory milestones. In this sense, the ideal would be to segment the objectives for new parliamentary fronts, with specific paths for cannabis and hemp. The latter could even be the main focus at first, seeking to address a significantly larger range of application possibilities for the plant.

Above all, there is another essential point, regardless of the developments surrounding the vote on Bill 399/2015. We need to start seeking specific regulatory milestones for each form of application of the plant, as is done in more developed countries.

That is, in the pharmaceutical, food, beverage, and cosmetics sectors, for example, there would be regulation by the National Health Surveillance Agency (Anvisa), as already occurs in Resolution of the Collegiate Board (RDC) 327/2019, which provides for procedures for the authorization of manufacturing, importation, prescription, commercialization, and inspection of cannabis-based products for medicinal purposes.

<|vq_10943|>