According to the government of Ecuador, the cannabis legalization process will be ready in June, as the discussions are progressing at a fast pace. The new cannabis law will allow the selling and cultivation of cannabis at an industrial level, but will not allow self-cultivation. The reason given by the government is that self-cultivation would make control impossible.
The Ministry of Agriculture of Ecuador offered to have the regulations related to the decriminalization of the cultivation of non-psychoactive cannabis products for medical and industrial purposes ready until June 21st, 2020. This was announced by Andrés Luque, Undersecretary of Agricultural Production of the Ministry.
Through a video conference, broadcast on the afternoon of Wednesday, May 20th, 2020, the official said that the regulations are advanced and that only certain final details remain to be adjusted. This should be in line with the reforms to the Comprehensive Organic Penal Code (COIP), which will enter into force in approximately one month.
If you want to know more about cannabis, how the legalization process is developing in Ecuador, how the soon to be implemented legalization will bring many economic benefits to the country, and to find out the latest cannabis news, download the Hemp.im mobile application.
Legalization will change the cannabis landscape in Ecuador
Luque clarified that, once the regulations are approved, the Ministry of Agriculture of Ecuador will issue cannabis licenses for import and production of seeds, sowing and cultivation, plant breeding or research, processing, and industrialization; as well as export and marketing of biomass or non-psychoactive crude cannabis oil.
He specified that self-cultivation will not be allowed, as this would make control impossible, because non-psychoactive cannabis has similar characteristics to its variant considered a controlled substance. “In a house or a garage it is difficult to visually recognize whether a plant has psychoactive ingredients or not, phenotypically they are the same,” he said.
Furthermore, licenses can be applied for only by legal entities, public entities, cooperatives, or associations domiciled in Ecuador. Individuals cannot do this, because the aim is to avoid “informality” and focus more on the development of a robust cannabis industry.
The legal representative must also present a certificate of criminal record. The directors of the company and its shareholders must do the same, with more than 6% participation. “It shall be verified that they have not been declared criminally liable for crimes of drug trafficking, money laundering, corruption, and other related offenses.”
Several requirements will have to be met in order to obtain a cannabis license
One of the many requirements established by the government for obtaining these licenses will be to have defined a buyer or a promise to buy the product, either from the local market or abroad. The cost of the license will be variable, depending on the number of hectares to be planted. For now, the value has not been defined.
“In order to give licenses, it will be taken into account that the person who wants to cultivate cannabis will do so with a contract or a promise to buy, from an industry that has the permission here or abroad,” said the official.
While he said that the idea of the Ministry is that successful entrepreneurs in the flower sector can access this new market, the Undersecretary said that small and medium producers can also access licenses, under the figure of associations. “There will be no license business, they will be non-transferable, their goal is to generate foreign exchange and work.”
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Hemp.im, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in El Comercio, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.