Argentina’s Congress approved a law that to create a regulatory framework for public and private investments in the production of hemp and cannabis products in early May. The bill needed to be signed by President Alberto Fernández, which he did this week.
“This is another triumph of society against hypocrisy. I lived it with the divorce law, with same-sex marriage, and with abortion. I am an inveterate fighter against hypocrisy. Today we are winning another battle,” said President Fernández.
The new legislation legalizes the production of cannabis for medicinal and industrial purposes, creating a new industry that will help the recovery of Argentina’s struggling economy. In addition, the law provides banking services for cannabis businesses and opens a huge potential market of some 45 million people.
Matias Kulfas, Argentina’s Minister of Productive Development, said the cannabis industry could create up to 10,000 new jobs by 2025, increase the domestic market by $500 million, and increase export revenues to more than $50 million.
Cannabis And Hemp: Multi-Talented
Cannabis can be used for medicinal purposes while hemp has numerous practical uses, including in the construction and textile industries.
Thanks to its highly resistant fibers, Argentine hemp will be used in the clothing industry, production of biofuels, construction of low-impact housing and due to its high cellulose content, the production of paper.
Globally, industrial sales are expected to triple in the next 7 years, rising from $4.71 billion in 2019 to $15.26 billion in 2027.
Meanwhile, Argentina has at least eight different varieties of cannabis seeds, good news for keeping costs down as well as the need to import the plant.
What’s In The Bill
The bill creates the Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME), whose function will regulate the import, export, cultivation, industrial production, manufacture, marketing, and acquisition of seeds, of the cannabis plant and its derivatives derived products for medicinal or industrial purposes.