Argentina is making a bold move in the global hemp market, simplifying regulations and streamlining its hemp industry through Resolution 1/2024. This new framework, signed by Ignacio Ferrari, director of the Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME), sets the stage for Argentina to become a major player in the international hemp market.
The new regulations take a simplified approach, distinguishing between agricultural and industrial activities. ARICCAME, which oversees hemp and cannabis operations, has been restructured to improve efficiency and effectiveness. The agency’s new leadership has expanded powers to issue licenses and coordinate with other regulatory bodies to ensure compliance with the new regulations, first reported El Planteo.
Argentina’s Hemp Potential: A Global Powerhouse
Argentina already boasts a strong agricultural presence, known for its extensive production of soybeans, meat, and corn. This agricultural prowess makes it a potential major exporter of hemp, offering competitive prices for seeds, fibers, and oils. As the Argentine hemp industry gains momentum, it could significantly impact global prices, benefiting industries like textiles and pharmaceuticals. This move could also create stiff competition for U.S. hemp producers as Argentina’s scale and efficiency could meet growing global demand at a lower cost.
To learn more about Argentina’s thriving cannabis industry and the opportunities ahead, consider attending El Planteo’s CannaB2B event in Buenos Aires on November 4th. Sponsorship opportunities are now open.
Key Licensing Changes and Fees
One of the most significant changes introduced by Resolution 1/2024 is the repeal of Resolution No. 2/2023, which previously governed provisional permits for cannabis activities. Existing permits will remain valid until their expiration date, but new applications must adhere to the updated framework.
The new resolution establishes two types of licenses for industrial hemp production:
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Agricultural License:
This license covers hemp cultivation, transportation, and processing of hemp seeds and fiber. The annual fees vary based on the acreage: * 0-100 hectares: No cost
* 101-500 hectares: $500,000 annually
* 501-1000 hectares: $1,000,000 annually
* More than 1000 hectares: $2,000,000 annually
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Industrial License:
This license governs the commercialization, distribution, import, and export of hemp products, with an annual fee of $1,000,000.Argentina’s strategic move to streamline its hemp regulations signals its ambition to become a dominant force in the global hemp market. With its vast agricultural resources and a simplified licensing system, Argentina is poised to challenge existing market players and create new opportunities for both domestic and international businesses.
