Colombian Government Passes CBD Regulation
Regulation 227 aims to make the country’s cannabis industry more competitive by allowing the export of dried flower and other CBD based products
Colombia is positioning itself as a comer in the global cannabis market. The latest move, allowing GACP certified CBD producers to export their product globally, is just another sign of the same. It also comes almost 8 months after the government also allowed the export of GMP grade medical cannabis flowers.
This now positions Colombia as a country poised to export other Central and South American countries and north (to Canada). The country is already a player in the European market, shipping cannabis to the UK and multiple countries in the EU, including Germany.
How legitimate is the CBD Market for International Export?
Colombia and other countries in Central and South America may be price competitive when it comes to the EU-GMP conversation, however, the jury is still out when it comes to CBD of the GACP kind.
On one hand, the fact that CBD regulations are on the normalization side (see both France and Germany), imported CBD flowers and extract is still a dodgy proposition. There is currently a de facto ban on the import of CBD in Germany right now because of this. Hemp is also a subsidized crop here, so entering this part of the market remains a ferociously competitive and regulation-strewn proposition.
That said, there is always France.
However, Colombia is not the only country, in or outside of Europe now gunning for these markets.
The question, as it always is, is one of price.
What the entre of Colombia into the global cannabis really means is that prices, in both GMP quality and that bound for “other” purposes, are headed down.
And that, both for the medical market and the budding recreational one, is actually very good news.
Cannabis As Global Commodity
This is not to say that the entire cannabis commodity supply chain is suddenly de-kinking. Companies have been built in the German market alone by knowing how to arbitrage this most fickle of commodities. Those days are far from over yet.
However, knowing that Colombia is open and ready for business and where to talk to the manufacturers (in Europe) means that suddenly sourcing cheaper, regulated, and registered cannabis is no longer such a pain, much less expensive.
Bottom line? Colombia has made the transition from “illicit drug capital” to “cannabis exporter to the world” in a few fairly easy and smooth jumps.
Be sure to book your tickets to the upcoming International Cannabis Business Conference events in Barcelona, Berlin and Zurich!