Updated 05:51 AM EST, Wed, Jan 27, 2021

Mexico a Tempting New Business Opportunity for Entrepreneurs Looking to Cash in on Medical & Recreational Marijuana

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Mexico has become a tempting business venture for legal cannabis now that the legalization of medical and recreational marijuana is nearing.

Plenty of top weed entrepreneurs, such as medical marijuana growers and pot private equity companies, are considering business opportunities in the country after a Supreme Court decision hinted at the drug's legalization, Reuters reported (via Yahoo! News). Cannabis is still illegal in the Mexican market and is still being controlled by drug cartels.

"Me personally, I'm not afraid to go to Mexico," said Daniel Sparks, BioTrackTHC's head of government affairs, as quoted by Reuters. The firm is based in the United States and is a provider of marijuana supply-chain software.

Sparks said that Mexico's drug cartels would likely lose interest in a legal marijuana market, especially if it attracted respected pharmaceutical and tech companies.

"I am not so optimistic to think that a cannabis business in Mexico would not encounter opposition or violence from the cartels," he added, as reported by the news outlet. "However, their profit margins are being eroded daily, monthly and yearly by the continued expansion of medical and recreational marijuana programs in more and more U.S. states."

Cannabis private equity firm Privateer Holdings estimated that Mexico's legal medical and recreational marijuana market could be worth $1.7 billion annually, Reuters further reported.

"It shows North America ... is moving in the same direction, and that's more than just symbolic: it's indicative of what will happen at a global scale," said Brendan Kennedy, Privateer Holdings' chief executive, as quoted by Reuters. "Mexico is an interesting investment opportunity."

Products that companies could provide include marijuana plants for medical treatment, cannabis-based medicines, pot-themed social media websites, and supply-chain software, the news outlet listed. The latter is a way for regulators to track suppliers and inventory.

Mexicans, as well as President Enrique Peña Nieto, oppose the legalization of marijuana. However, the Mexican leader said that his government is open for a national debate regarding the issue. Peña Nieto's Institutional Revolutionary Party, or PRI, has submitted a bill for medical marijuana regulation, Reuters noted.

The PRI's bill only permits imported cannabis, Reuters added. That has disappointed some people, including Mexico City Mayor Miguel Angel Mancera. He argued that any legislation should encourage a domestic medical marijuana industry in the country.

Over 100,000 individuals have been killed in Mexico's drug wars in the past decade, Reuters reported. Potential U.S. and international investors chose to remain silent for fear of attracting unwanted attention from cartels. These firms could decline to operate in Mexico if it means they would be in competition with drug gangs, Kennedy added.

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