Such legislation takes a further step, building on last year’s Decree 811 creating a licensing scheme and legalizing export of commercial marijuana, after allowing its use for scientific and medical purposes in 2016 with Law 1787.

Signed February 20, the new law enables domestic production and marketing of non-psychoactive cannabis products, and further defines import and export rules.

“This resolution allows, defines and establishes all the mechanisms and procedures for the industrial use of the cannabis plant in sectors such as food, beverages, alcoholic beverages and dietary supplements, defining, of course, that these uses have to do with the non-psychoactive component,” said Colombian President Ivan Duque.

“There has already been progress in credits for small and medium-sized producers. These credits continue to be developed through the Agrarian Bank, where cannabis producers are also provided with all the issues of foreign exchange management, monetization and marketing from Colombia,” The president continued.

Colombian Health Minister Fernando Ruiz Gómez added that the regulation is important for the safe development of the legal cannabis industry, including oversight by Colombia’s food and drug regulatory agency INVIMA (Instituto Nacionál de Vigilancia de Medicamentos y Alimentos).

“The different sanitary provisions that must take place by INVIMA, with good manufacturing practices, and all labeling and packaging requirements, are fundamental for all the progress of the industry,” said Dr. Gómez.

“This opens the possibility, with the components of the cannabis plant and its non-psychoactive derivatives, of producing dietary supplements complementing the existing dietary supplements in Colombia, in order to advance in the entire process of supporting nutrition and support to people who require dietary supplements”.

Cannabis Industry Pleased

Bill Petron, CEO of PharmaCielo (TSXV: PCLO) (OTCQX: PCLOF), a Colombian cannabis producer with Toronto headquarters commented on the news, saying in a statement: “The passing of Regulation 227 is a historic development for the Colombian cannabis industry, opening the large and growing global dried flower market as well as multiple CBD-based opportunities, to Colombian producers. The Colombian government has consistently demonstrated its desire to build this industry into a global leader, and in our opinion the announcement makes Colombia the most export-friendly and competitive jurisdiction in the world.

Dried flower accounts for up to 50% market share in most mature cannabis markets globally and represents a massive opportunity both for the Colombian industry, and PharmaCielo. With scalable cultivation and processing capacity in place, a structural cost advantage, and the sophistication to ensure consistently high-quality products, PharmaCielo is positioned to capture market share against current international exports from markets like Canada.

The government’s revised approach to the quota system will both ensure speed to market, as well as greater efficiency throughout the sales process. We expect 2022 to be a very exciting year of growth for PharmaCielo, as we launch and expand dried flower exports, bringing global patients access to high quality, affordable medical cannabis products.”

Above photo: Wilson Ruiz Orejuela, Minister of Justice and Law, and Juan Gonzalo Botero, Deputy Minister of Agricultural Affairs of the Ministry of Agriculture and Rural Development join President Ivan Duque at the podium and health minister Dr. Fernando Ruíz Gómez announcing the legislation.