Cannabis – Regulatory framework for the development of the medicinal cannabis industry in Argentina
By Belen Recchini.
On May 5, 2022, the Chamber of Representatives of the Argentine Republic passed the bill that establishes a regulatory framework for the chain of production, industrialization and commercialization of the cannabis plant, its seeds and its derived products, for industrial and medicinal use –including scientific research–, thus promoting the national development of this sectorial productive chain.
The new law provides the regulatory framework for public and private investment in the entire medical cannabis chain and complements the current Law 27,350, on MEDICAL AND SCIENTIFIC INVESTIGATION OF THE MEDICAL USE OF THE CANNABIS PLANT AND ITS DERIVATIVES.
This law, which had already been approved by the Chamber of Senators, has just been enacted by the President of the Nation, precisely on May 24, 2022.
Regarding the production of industrial hemp, it will allow the sector to develop on scale, legalizing the production processes, marketing processes and their by-products.
The REGULATORY AGENCY OF THE HEMP AND MEDICINAL CANNABIS INDUSTRY (ARICCAME) has also been created, and it will be the competent body to regulate, control and issue administrative authorizations regarding the use of cannabis plant seeds, cannabis and its derived products. This entity will have technical, functional and financial autarchy and will orbit within the scope of the Ministry of Productive Development.
To start their activities within the hemp and medical cannabis industry, human or legal persons must have prior authorization from ARICCAME. Any eventual merger and/or transfer and/or assignment of its shares and/or goodwill will also require prior and express authorization from the regulatory authority.
For the granting of the aforementioned authorizations, ARICCAME will give special consideration to those requests aimed at contributing to the development of regional economies and promoting the activity of cooperatives, as well as small and medium-sized agricultural enterprises, also attending to the inclusion of the gender perspective and diversity and federal projection in its granting.
A monitoring and control system is foreseen, as well as a sanctioning regime (warning, fines, suspensions, expiration and disqualification) for the holders of authorizations, in addition to the civil and criminal liability regime that is applicable to them for diversion of products to the illegal market.
Likewise, the FEDERAL COUNCIL FOR THE DEVELOPMENT OF THE HEMP AND MEDICINAL CANNABIS INDUSTRY is created, which must suggest distribution criteria and granting of authorizations at the federal level and pronounce on the granting of the same and recommend to the ARICCAME policies tending to a harmonic development of the industry in each region.
The regulation of the law will generate a special program aimed at the entrepreneurships which have developed special knowledge and experiences about the various medicinal, therapeutic and palliative uses of the cannabis plant.
ARICCAME will articulate with the SECRETARIAT OF SMALL AND MEDIUM ENTERPRISES AND ENTREPRENEURS financing and entrepreneurial support programs in order to facilitate and promote, within the scope of its competence, the development of enterprises and SMEs linked to these activities.
At Ojam Bullrich Flanzbaum, we count with a team of professionals specialized in the field who offer comprehensive and personalized solutions, adapted to the specific needs of each of our clients.
For further information please contact: firstname.lastname@example.org.