Panama wants legal medical cannabis, but hemp bill remains

In October 2019 MP Kayra Harding presented a bill (Proyecto de Ley No. 323) to promote the development of the hemp industry in Panama. The bill would establish a licensing system for hemp cultivation and processing. Hemp is defined as cannabis whose THC content does not exceed 1.5% on a dry weight basis. However, legislative scrutiny of the bill has been slow.

Last October, government and legislative officials agreed to set up a sub-commission to “enrich” the bill. According to commentator Rafael Carles, it is ignorance when it comes to hemp and how it differs from marijuana that is behind the delays. At the same time, there are concerns among the Panamanian population that the development of the hemp industry will only fuel powerful business interests. These two statements are not mutually exclusive, as this reader’s comment on a recent Carles column shows:

“Careful Panama! Now entrepreneurs want to profit from their vices, it’s not just about alcohol and beer. Now it’s with drugs, but with a different name, the marijuana plant is called hemp. “

It doesn’t help that the legalization of medical cannabis in Panama is fraught with allegations of corruption. According to a report, Canadian company Canna Med Panama, SA “not only closely followed the debates in the National Assembly to approve Bill 153 to regulate the use of medicinal cannabis, but also sponsored a trip for five officials to Louisiana. some key factors in making decisions about the future business of using cannabis for medicinal purposes. “

Photo by Francisco Rioseco via Unsplash

Bill 153 was approved by the National Assembly last August and is pending signature by the country’s president. The new legislation established four license categories: import of cannabis derivatives, production of cannabis derivatives, cultivation and research. In the case of license applicants who are natural persons, under the new law they must indicate their nationality, which logically suggests that licenses can be issued to foreigners; the bill is silent on whether Panamanian residency is required.

RELATED: Legalization in Latin America: Who’s Next to Mexico?

As for legal entities, the bill requires that they disclose their public registry information without clarifying whether it contains information analogous to that on a U.S. Secretary of State’s registry (although we proceed and suggest that it be so as not to be so difficult to open a branch in Panama). Regulations issued after the bill came into force can provide additional clarification.

Once the bill goes into effect, Panama will find itself in a somewhat strange situation: there will be legislation for medical cannabis, but none for hemp. Hopefully, with the passage of Bill 323, the situation can be resolved soon.

RELATED: Panama’s Congress Legalizes Medical Cannabis Through Unanimous Vote

Right now, there is an important takeaway for cannabis advocates across Latin America and other emerging markets. In regions with large inequalities, licensing programs can be viewed as giveaways for powerful interests if not properly worded and explained. As with all other governance areas, transparency is critical. In addition, cannabis legalization efforts can find broader support if viewed as economic opportunity tools for ordinary citizens. Provisions can help ensure that part of the profit generated goes to those most in need.

Accordingly, cannabis companies, especially those from abroad, need to be careful when it comes to engaging in local politics. Counter-reactions against perceived corruption can cause otherwise positive initiatives to fail and stir up resentment against the parties involved.

Fred Rocafort is a former diplomat who joined Harris Bricken after more than a decade of international legal experience, mainly in China, Vietnam and Thailand.

This article originally appeared on the Canna Law Blog and was republished with permission.