Uruguay prepares to take a big step by legalising the cannabis trade

It appears that the South American country is determined to show the world that things can change, that nothing is set in stone and that another approach to cannabis is possible. The process is shaping up in typically Uruguayan fashion - slowly but surely. Step by step and very cautiously, Tabaré Vázquez's government is establishing parameters for the country's new cannabis industry. Thirty-four international companies are already clamouring to be involved in this new industry before it has even begun.

But… how have they done it? Let's take a quick look at the key points in the process.

What is the current situation?

In order to set up a legal system for the manufacturing and supply of marijuana, Mujica's government approved some new legislation in December 2013 that focused on minimising the risks of cannabis for health purposes. Better controls result in a higher quality product. By eliminating the element of secrecy, consumers have access to more information and minimum standards for consumption can be implemented.

The law allows marijuana to be grown for personal use and states that users can have upto six psychoactive plants and the equivalent of upto 480 grams per year.

However, since Tabaré Vázquez's government inherited the initiative after coming to power, the country has been cautious with regards to the statement it is making as it is all to easy to broadcast a message which ends up promoting or apologising for the substance. Uruguay now finds itself in a delicate, relatively uncharted territory.

Measures have already been taken as part of the process: "We have started to put mechanisms in place to launch the cannabis industry. With regards to manufacturing cannabis for medical purposes, the Ministry of Public Health is updating its protocols to determine which type of cannabis is suitable for each illness," says Milton Romani, secretary of the Uruguay National Drug Board.

The country currently has two state greenhouses which are growing the marijuana plants that will supply cannabis to 50 pharmacies located all over Uruguay.

How will this project take shape?

The starting pistol for this legislation will be fired in July, marking the beginning of a pilot project that will involve 50 pharmacies which have already signed up. This trial is expected to lead to a second phase which will see the number of pharmacies double. It seems that the Uruguayan government aren't willing to leave anything to chance and have taken care of every last detail of this innovative project.

In the meantime, users are scrambling to sign up so that they can purchase cannabis legally. To do this, they will need to have their personal details and fingerprints registered on a system which is protected by "habeas data" law in order to guarantee security and privacy. Each user will be able to purchase 10 grams of marijuana per week.

Out of the 22 companies that submitted a bid, two were eventually chosen and they will be able to produce 4000kg of the controversial green substance per year. This will be supplied to pharmacies at a cost of US$0.90 per gram, and they in turn will sell it to consumers at a price of US$1.17 per gram. Every pharmacy will be able to keep two kilograms in stock. "In the beginning, demand could well exceed the amounts that have been forecast, but we expect to implement an incremental strategy," explains Romani.

In a bid to avoid encouraging the use of cannabis, pharmacies will not be allowed to have it on display in the shop. By implementing this measure and others, the government hopes to make the public aware that the purpose of this project is to control the substance in order to minimise health risks, rather than to encourage cannabis use under any circumstances.

New, unforeseen possibilities are opening up

Although the project is being rolled out with a great deal of rigour and planning, it is only natural for alternatives and options that were not considered in the first place to arise. Despite the fact that the original purpose of the project did not include research and the use of cannabis for medical purposes, certain companies which specialise in this industry have already shown interest in being part of Uruguay's new system. One of these is a major firm from Israel which has specialised in developing marijuana for medicinal purposes for quite some time. "Obviously this is one of the co-benefits of the law and it contributes to health from a different angle, opening doors that would have been unexpected in the beginning," says Romani.

Slowly but surely, Uruguay is on the path towards the full legalisation of marijuana, something which is a dream for many and a reality for others. In the meantime, Europe and the United States are watching warily from the sidelines as the legal framework of cannabis changes little by little. Canada, Uruguay… the list of countries that have legalised cannabis is growing ever longer and it is a new, emerging industry which is here to stay.