Mexico Senate pushes to legalize recreational marijuana. The bill’s final draft will be presented on October 17, 2019. Mexico will be the third country to legalize recreational marijuana after Canada and Uruguay.
Benefits to Mexico
It will reduce black market activities.
Taxpaying businesses will enter the segment.
It will boost Mexico government tax revenue. According to Biz Latin Hub, legalisation will add $1.2 billion in tax revenue for Mexico and as well save up to $200 million in enforcement cost
The projection is that Marijuana legal market will be valued at $12.0 billion by 2029.
The industry will promote ancillary activities that would create employment.
It is almost quite natural that while solving a problem, some problems are created. Therefore complete marijuana legalisation in Mexico will pose a problem to US cannabis producers. North American marijuana farmers could face strong competition from Mexican cultivators. Mexico’s climate is more favourable in growing marijuana together with low cost of production because of cheaper labour.