Cannabis Regulation In Latin America: Towards An Integrated Market Or Stagnation?
By Pablo Fazio
The process of regulating cannabis has been complex and varied, with advances and setbacks occurring in different regions around the world. While much of the global attention is focused on the United States, where the rescheduling of cannabis dominates headlines, the situation in Latin America—a region that has been actively involved in this debate—has not been much different. The political swings faced by various countries have been reflected in the pendulum-like nature of their public policies on cannabis.
Brazil has recently emerged from a highly conservative government that was focused on restricting any form of regulation that might broaden cannabis use, leaving a legacy that still weighs heavily on the development of its market. The country still does not allow cultivation for commercial purposes domestically, sparking debates around dependency on imports and the rising cost of medicinal products. With the return of Lula da Silva, the center-left government is showing signs of loosening regulations, potentially positioning Brazil as an industrial powerhouse in the global cannabis market. In 2023, the Brazilian medicinal cannabis market generated approximately R$ 700 million (around USD 140 million), representing a 92% growth compared to the previous year. It is estimated that over 430,000 people use cannabidiol (CBD) to treat various medical conditions. The Brazilian Health Regulatory Agency (ANVISA) has authorized the sale of 26 medicinal cannabis products, including oils and extracts, which can only be prescribed by physicians and purchased in authorized pharmacies.
In contrast, Argentina, which in recent years had experienced significant progress in cannabis regulation, has paused this process since Milei took office. Everything now seems frozen, contradicting the new president’s promises to deregulate the economy “to unleash the country’s productive forces.” Changes in the REPROCANN program (Resolution 3132/2024, which introduced modifications in control and oversight mechanisms for the medicinal use of cannabis) and the recent intervention of ARICCAME (Decree 833/2024) have created an environment of uncertainty. Despite this context, some industry players, such as Cannava (the government-owned company in Jujuy), have started exporting pharmaceutical-grade flowers to countries like Portugal, Germany and Australia. Therapeutic products are also being dispensed in their pharmacies (Pampa Hemp Dispensary) in the form of full-spectrum magistral preparations. Despite these advancements, the overall situation of the sector is marked by great uncertainty, triggering a decline in investment confidence, and many companies are struggling to sustain their operations.
Colombia and Uruguay, considered pioneers in cannabis regulation in the region, show figures that expose the harsh reality of the failure …