Argentina's Cannabis Commerce Takes Off, New Categories Open Doors To Huge Domestic Market, Producers And Exports

Argentina, a nation of 45 million people and approximately 6 million cannabis users, took a historic step as the Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) formalized the categories of producers that will shape the supply chain of Argentine cannabis.

Registered producers will be able to market cannabis-based products and export them.

With this regulatory shift, Gabriel Giménez, a key figure at ARICCAME, unveils exclusive insight into what is driving this evolution.

What Is The Importance Of The New Regulations?

In an exclusive interview with El Planteo, Giménez, a board member of the newly established ARICCAME, said the categories are a response to the need to diversify the productive matrix of regional economies and strengthen the roots in the interior of the country, through the formalization of the industry and creation of quality jobs.

"It is an immense joy to reach the regulation that creates the medicinal cannabis and industrial hemp industry. It follows a very important history of social construction and the possibility of developing the industry alongside a state that responds to popular demand, through Laws, which valorize industrial hemp as a strategic crop," Giménez said.

Giménez stressed the importance of stabilizing hemp genetics for grain, textile fiber and construction. He highlighted hemp's environmental sustainability and added value throughout the entire production chain, from the cultivating producer to the end consumer as well as the various participants such as transporters, processors, distributors and commercial agents.

"There is no possibility of industry development without a federal perspective of support for regional economies with added value. We have the opportunity to create quality employment, impact on the domestic market, and, above all, decent wages. That is already a concrete possibility," Giménez explained.

“We have the responsibility to bring industrial hemp to small and medium-sized producers."

What Do The New Regulations Say?

The regulation of the law defines the following categories:

"Psychoactive cannabis" with a THC content of more than 1% in dry weight, "according to certified instruments, methodology, and measurement procedures with national standards and regulations," and "Industrial and/or horticultural hemp" with a THC content of up to 1%.

The permitted uses of cannabis and its derivatives include human and veterinary medicinal use, nutritional, cosmetic, industrial, health and plant fertility, as well as those emerging from scientific research and technological development.

Social Equity And Diversity In Argentina’s Cannabis Industry

More than 50% of decision-making positions, such as the presidency, administration, management and executive positions as well as more than 50% of general staff positions must be occupied by women or transgender individuals.

Types of Licenses For Medicinal Cannabis Producers 

  1. Breeding, multiplication, and cultivation license
  2. Logistics services license
  3. Derivatives production license.
  4. Commercial licenses 
  5. License for analytical studies and tests.
  6. Foreign trade license.

Hemp Authorizations

ARICCAME will issue the following authorizations related to Industrial and/or horticultural hemp:

  1. Authorization for the cultivation and commercialization of hemp seeds or plants.
  2. Authorization for processing Industrial and/or horticultural hemp and sub-products.
  3. Logistics services authorization.
  4. Authorization for foreign trade of hemp seeds, plants, and products made of Industrial and/or horticultural hemp.

Commercialization License

  • The Commercialization License is subdivided into two categories: seeds, seedlings, and cuttings, which involve possession and storage for commercial purposes, as well as the buying and selling of registered genetic varieties to subjects covered by Law No. 27.350.
  • Likewise, the category of Cannabis and its derivatives allows possession and storage for commercial purposes, as well as the buying and selling of Cannabis and its derivative products to subjects covered by Laws 27.669 and 27.350.

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

Photo via El Planteo

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Posted In: BiotechCannabisGovernmentLatin AmericaNewsRegulationsEntrepreneurshipCommoditiesPoliticsRetail SalesLegalManagementExclusivesMarketsInterviewGeneralArgentina CannabisARICCAMEGabriel Gimenez
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