The Executive Branch Endorses the Legalization of Hemp for Industrial Use

Yesterday, the Minister of the Presidency, Marcelo Prieto, confirmed the support of the Executive Branch for the legalization of the cultivation of hemp, as well as research and the commercialization of products that contain hemp, for industrial and therapeutic uses. Their announcement is in relation to bill 21,388, which raises the possibility of legalizing the use, production, commercialization, industrialization, and scientific research of cannabis and hemp, for medicinal, therapeutic, nutritional, and industrial purposes.

The Executive Branch’s support for the section of the bill related to the hemp is based on several technical studies that project the cultivation of hemp as an opportunity for economic reactivation. According to PROCOMER, the market for the sale of industrial hemp products was estimated at $5.7 million in 2020, with a compound annual growth rate (CAGR) of more than 22% projected for 2025.

On the other hand, the Executive Branch will not support the legalization of cannabis (marijuana) for medicinal or recreational purposes. Stating that the State does not currently have the tools nor resources to control its production, commercialization, and consumption, in order to ensure the safety and health of the Costa Rican population.

Despite the lack of Executive Branch support, the congress people that form the Environment Commission approved by majority bill 21,388. The legislators argue both variants of cannabis would generate new sources of employment and attract foreign investment in the country. Plus the collection of a 1% tax on the net profit income obtained from the cultivation of medicinal or recreational cannabis.

This project is still being discussed in Congress and may undergo modifications in the coming months.