Mexico Missed Its Deadline – Don’t Miss Yours
No one ever said stoners were punctual, but we really ought to hold politicians and investors to a higher standard.
October 31 was the court-appointed deadline for Mexico to pass marijuana legislation, but the government missed it and the country’s Supreme Court issued an extension.
Mexico now has until April 30, 2020, to pass marijuana reform legislation.
Hopefully, it won’t take that long — and really, it shouldn’t.
There’s already a framework in place.
The Senate submitted a bill last week that would allow adults 18 and older to use, possess, and purchase cannabis from licensed retailers, and grow up to four plants for personal use. It also mandated that 20% of licenses go to economically disadvantaged people, and outlined provisions providing for testing and quality control.
Unfortunately, it was stalled by outside lobbying interests, civil rights groups, and infighting.
Nevertheless, Ricardo Monreal, the ruling MORENA party’s leader in the Senate, is optimistic the kinks will be worked out this month — well ahead of the new deadline.
That would be prudent.
With 130 million people, Mexico would be the largest legal market for cannabis in the world, topping Canada.
Its current annual market value is $2 billion, but that figure is likely to balloon substantially as legalization takes effect.
The cannabis industry could also support 50,000-75,000 jobs, reduce drug-related crime, and save millions on enforcement costs.
With so much to be gained, you’d think more countries would be rushing to move into the marijuana market.
After all, Canada registered a record $97.28 million in cannabis retail sales in August. And it raked in $625.3 million in licensed-store revenue in the 10 months since legalization legislation was passed.
And that’s just with 500 stores in all of Canada, and limited products.
Indeed, the first year of cannabis legalization only allowed for flower and oils to be sold. Sales of edibles and derivatives will launch in December.
That will put countries like Mexico and the United States even further behind.
They don’t seem to understand that this is a race. There are companies up in Canada right now perfecting their processes and learning on the fly. They’re sucking up talent and experience, giving them an edge on whatever competition eventually arises abroad.
And competition is coming.
Thailand is building Southeast Asia's largest medical marijuana facility and considering legislation that will allow individuals to grow up to six cannabis plants for medical use.
Its government is looking to be the main producer of medical marijuana, with the Government Pharmaceutical Organization aiming to have a million five-milliliter bottles of cannabis oil available by February.
Last year, Zimbabwe became the second African country after Lesotho to legalize marijuana for both scientific and medical use.
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And now, there’s a pilot project underway to grow industrial-grade hemp on prison grounds in Harare. One of the motivations for the government to permit hemp cultivation is that it could be a substitute for tobacco, which makes up more than half the country's total exports.
No doubt, hemp and its cannabidiol-based products could be a huge opportunity for the country to expand and diversify its export revenue. It could also lead to its products infiltrating North America and other parts of the world that have been slower to act.
This isn’t a game. It is one of the world’s most rapidly-evolving industries, and any delay — be it weeks, months, or years — will prove costly to those who stand still.
That includes the United States with its fractured, lazy, and unfocused leadership.
It also goes for investors.
I know Marijuana stocks haven’t had the best year. Many have taken a step back since catapulting well beyond their value.
But that’s what we in the industry call a “buying opportunity.”
This is the perfect chance to get in on pot stocks without overpaying for them. It’s the point of maximum return on investment.
So if you want to move fast and take advantage, you should check out Jimmy Mengel’s latest report.
Jimmy is editor of both The Crow’s Nest and The Marijuana Manifesto.
He’s the strongest marijuana investing expert out there, with a peerless track record.
He knows the U.S., Canadian, and global cannabis markets better than anyone.
And he hasn’t lost money on any of the 88 investing recommendations he’s made.
So make sure you’re signed up with him if you’re not already.
Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of The Wealth Warrior, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's page.
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