Costa Rica to promote hemp cultivation to boost its economy

Costa Rica's president, Carlos Alvarado, has opened the door to the forthcoming legalization of hemp as a means of revitalizing the country's economy, which has been hard hit by the coronavirus pandemic, with an estimated 3.6% recession in GDP.

In his annual address to Congress, Alvarado said the measure would allow hemp to be produced under controlled conditions.

«We will promote hemp cultivation to reactivate the productive sector, with all the necessary guarantees and safety,» the president said in his speech.

A bill already exists

A bill to legalize hemp has already been introduced by Assemblywoman Zoila Volio in 2019. This focuses on regulating the production of hemp and cannabis for medicinal and industrial purposes, and would not allow the recreational consumption of cannabis. The Costa Rican President has not said whether he intends to build on this project or not, and indicated that he would give more details soon.

«Project 21,388 aims to contribute to the quality of life of patients with certain conditions, create jobs, contribute to the public treasury, diversify agriculture and strengthen our technology talent,» Volio said via his social networks on April 23.

El país debe empezar a pensar en las próximas medidas a tomar. El Proyecto 21.388 busca aportar a la calidad de vida de pacientes con ciertas afecciones, crear empleos, aportar al fisco, diversificar el agro, y fortalecer nuestro talento en tecnología. pic.twitter.com/dpK1OKx2A6

- Zoila Rosa Volio (@zoilarosavolio) April 23, 2020

This bill is to «regulate the planting, cultivation, harvesting, production, processing, storage, distribution, industrialization, marketing and export of Cannabis Sativa L plants and their varieties and the hemp plant or Industrial Hemp».

The project also focuses on promoting the export of the crop or products derived from this plant, such as oils, fabrics, food, building materials and ropes. Licenses would be granted for the sale of cannabis-based medicines, as well as regulating the use of seeds and the planting of hemp.

The bill was nevertheless criticized for reducing the scope for self-cultivation of cannabis, now decriminalized for personal use, and for setting high licensing costs that would mechanically reduce market access for larger companies.

Currently, the cultivation and possession of cannabis for personal consumption is decriminalized in Costa Rica. An attempt to legalize hemp and medical cannabis had already been made in 2016, aborted by pro-prohibition MPs. Patients can import cannabis treatments from abroad, in oil form, as long as THC levels remain below 0.3%.