In the last few years, cannabis has been receiving recognition in its industry-wide usage. After Canada became the very first commercial giant to have legalized the deemed illicit herb for its health hazards, there are other nations lining up in the fad. Outside of Canada, 33 U.S. states have given a clean chit to the use of cannabis for medicinal and recreational purposes to some extent.
A lot has changed since the last two decades, and advances leading to waving the green flag over adult consumption have taken a leap.
In recent news, it was mentioned that because of the recent voting in Henry County, around a 3.75% tax on Cannabis sales would be applied. This would also influence the cannabis business to a considerable extent.
Mexico is one of these few nations, who has recently rolled out its revolutionary cannabis bill, that can be expected to be enacted as a law. It’s certainly a huge breakthrough as a massive population is getting freedom in the usage of the drug.
Here’s what you need to know about the bill:
- Bill doesn’t hold significance besides a rule
It has been rumored that the law by Mexico is just a typical formality for now.
The Supreme Court of Mexico last year ordered a prohibition over the use of drugs for recreational purposes. Even inhabiting the herb was considered unconstitutional. This isn’t the 1st, but the 5th time Mexico court has given a verdict in this regard, and it has become a pre-established standard.
In other words, the legalization of the drug happened long before the regulatory bodies gave a verdict. It’s just to keep it on the record that the law will be enacted.
- Age Limit to buying Cannabis reduced to 18 years
Mexico has a much larger population than the U.S.; hence, it has naturally become a lucrative option for the pot businesses. Mexico has taken another stride ahead U.S by reducing the age limit of buying marijuana by three years. By setting the age limit for buying cannabis at 18 years, Mexico has become the most sought after pioneer embracing the use of Cannabis.
- Private Consumption mandated
The bill mandates another practice while using marijuana. It deems public usage of the product as vulnerable and impertinent and hence asks for the use of the drug at private places only. This rule exists in the U.S. cannabis bill too.
However, a café of Cannabis is inaugurated in West Hollywood, California, three weeks before, they are still not very prominent on the premises. Pot cafes as well as non-private areas of marijuana usage are still rare and are supposed to be that way for a considerably long time.
- Strict Packaging regulations implemented
Mexico’s weed constitution for recreation invites a nondescript packaging, as for other legalized marijuana bills in the North American Market.
There shouldn’t be any prints of real people and fictional characters over the packaging. This will help to eliminate all the illegal use of the drug, along with preventing young adults from falling prey to the darker side of this phenomenon.
- Restrictions on Edibles and infused beverages
One of the very interesting points of draft that legalizes recreational Marijuana usage in Mexico is it will just let the civilians buy edibles or beverages infused with cannabis. That holds significance when talking about the perspectives pertaining to investments, as the derivatives usually survive higher margins for planters as compared to dried cannabis flowers. Medical use of marijuana is legal in Mexico ever since June of 2017.
- The Cannabis Institute supervision
As with the Canadian landscape, an agency operating centrally, by the name, Cannabis Institute, is obligated with all the responsibilities of supervising Mexico’s industry. The Cannabis Institute will be authorized by setting limits to a recreational drug, enforcing the required legislation, and allocating cultivation or sales permissions through licenses. Unexpectedly, Health Canada is turning out to be an accompaniment than an actual aid while hitting the pot industry of Canada, so it is supposed to be fascinating to oversee the performance wellness of the Cannabis Institute, expecting this bill to be enacted as a full-fledged law.
- Major corporations deprived of license sanctions
One more significant point investors must understand is that most business of North American cannabis will not be allocated licenses. The bill of the legislation demands the low-income people, and economically lagging farmers, to get priority in getting the Mexican license. This is done to make sure that the economy of Mexico benefits the more than the foreign corporations, keeping the Mexican market of recreation as active as possible.
- Timeline of bill implementation looks time taking
It looks like that even though the Supreme Court of Mexico has set a timeline for the passing of the bill over lawmakers; it still can be delayed in a lot of ways.
The approval is aimed to be sanctioned this week, but it might need the appeal for an extension, while it is unlikely that the Supreme court will be in a position to grant an extension.
After all, that’s been stated in the bill, Mexico might look well, but cannabis stocks might take a downturn.
Unreliability of Stocks definitely makes the recreational demand a little less covered for Aurora Cannabis as well as Medical Marijuana. But since Mexico is not one the verge of prioritizing the legalization of marijuana for big businesses. It might handle the distortion in the worldwide marijuana market.