Mexico: legalization of recreational cannabis postponed until April 2020

This article was amended following the Supreme Court's ruling on November 1.

Following the postponement of the Senate vote on the legalization of recreational cannabis, the The Mexican Supreme Court has just granted an additional six-month extension. Mexican institutions now have until April 30, 2020, to enact legislation on the matter. 

A long and laborious process

A year ago, the Mexican Supreme Court ruled that it was unconstitutional Articles 235, 237, 245, 247, and 248 of the General Health Act, which prohibited the possession and use of cannabis for personal and recreational purposes. However, it had granted the government a grace period to address this new legal loophole and establish a regulated market. The final deadline was set for October 23.

On October 18, the Senate Judiciary and Health Committees presented a final proposal. The Senate was subsequently extended a week to properly review the text, but the vote, scheduled for October 28, ultimately did not take place. «As for cannabis, we are unable to reach a consensus,», Ricardo Monreal pointed out, chairman of the Senate's Political Coordination Council.

According to Ricardo Monreal, the disagreements are due to external pressures on senators: «The number of lobbyists involved in this bill is staggering.» He wants to prevent legalization from being hijacked by foreign influences: «The most serious consequence would be if this were to turn into a charade and we failed to address the urgent issues that need to be changed. Another concern is that multinational corporate lobbyists might impose a law that benefits them.».

Protecting the Legalization of Foreign Influence

In fact, the bill currently under discussion is not to the liking of large foreign cannabis multinationals. It significantly restricts their access to the Mexican market estimated at $2 billion and 1.4 million consumers potential. For example, it prohibits vertically integrated structures and limits to 20% the share of capital—in terms of commercial and scientific licenses—held by foreign entities.

Mexican legalization officials wanted to emphasize social justice. The proposed law It thus provides preferential access to licenses for rural Mexican communities that have long been affected by prohibition. «The idea is not to reject the money simply because it comes from foreign investors. What we reject is a foreign industry taking advantage of Mexico’s low-cost labor and land but taking the profits out of the country,», explains Zara Snapp, co-founder of the RIA Institute, in *El País*.

According to Ricardo Monreal, the vote was postponed precisely «to combat any external or outside influence on the legislative branch.» He also announced that the Senate’s Political Coordination Council would support the work of the Health and Justice committees: «We will take this very seriously because we do not want the bill to be subject to pressure or altered by private interests.».

However, some people, such as Lisa Sanchez, director of the association «Mexico United Against Crime,» do not see the point of this strategy. “The Mexican Senate will not yield to external pressure, which is why it is delaying cannabis regulation. Wouldn’t it be much more effective to regulate based on the national interest in order to put an end to this pressure?” she wrote on Twitter.

That he @senadomexicano No will not give in to external pressure and will therefore postpone the regulation of marijuana. Wouldn't it be much more effective to regulate based on the national interest in order to put an end to that pressure? Or is there too much at stake for the person who drafted the Menchaca opinion?

— Lisa Sánchez (@lismarybaby) October 30, 2019

A new extension

The Supreme Court convened on November 1, the date on which the previous deadline expired. At that time, it had the choice between issuing a declare the law generally unconstitutional or grant an extension. The first option would have invalidated the relevant articles, despite the absence of regulations, thereby effectively authorizing the personal cultivation and use of cannabis, but not its sale.

According to the Excelsior newspaper, six out of eleven judges had voted in favor of this first option. However, the text had to be approved by at least eight judges to be adopted. Ultimately, The court has ruled calling for a new «exceptional and non-renewable» extension of the deadline, citing the complexity of the legislative work involved in the issue of legalization. 

Regarding the Senate vote, according to the newspaper La Jornada, it would be postponed until the first weeks of November. However, given the new deadline, it is likely that it will be postponed again. At the same time, the idea of legalizing all drugs is being discussed by certain stakeholders who want to put an end to the cartels' illicit trafficking once and for all.