Proximity to major markets places Paraguay in a strategic position to lead cannabis production in South America
The Paraguayan government has generated great expectations in the cannabis sector with its recent announcement of the expansion of the legal framework for the industrial use of the plant, allowing unlimited use of THC derived from cannabis. This measure not only benefits Paraguay´s domestic market, but also has significant implications for the entire region, especially for Brazil, the largest consumer market in South America.
Recognized as one of the most advanced countries in cannabis regulation, Paraguay stands out for its strategic location in the heart of South America, offering unique logistical advantages. Its proximity to major markets, such as Brazil, places the country in a privileged position to lead the production and export of cannabis in the region.
Market potential in Brazil
One of the companies authorized in Paraguay to produce, industrialize and commercialize cannabis, International Market S.A., is optimistic about the possibility of legal expansion in the country. According to Federico Kuster, a company representative, the approval of the bill that will allow the production of cannabis for adult use will open the doors to international markets, especially Brazil, which has decriminalized the possession of up to 40 grams of marijuana or the self-cultivation of 6 female plants for personal consumption, as per a decision by the Supreme Federal Court, but does not have a legal framework for its production and commercialization.
"We are extremely eager to take the next step and produce THC to serve the Brazilian market, which is the largest in the region. We also have the capacity to serve other markets, such as Argentina, Uruguay and several countries around the world. We are just waiting for the approval of our bill to produce cannabis for adult use in Paraguay and export it globally," said Kuster.
Impact on the domestic market and quality assurance
In addition to the interest in international markets, Kuster highlighted the importance of meeting the local demand for cannabis in Paraguay, a need currently not met legally. "We are very excited because we will be able to meet a large domestic demand for cannabis for adult use, which currently depends on the illegal market. Many consumers seek flowers for therapeutic or recreational purposes. With the approval of our law, we will be able to offer quality products through authorized dispensaries and with strict controls that guarantee safety,” assured the company representative.
Kuster also emphasized that this quality guarantee will be extended to Brazilian consumers and those from other markets who choose to import cannabis from Paraguay.
A regional and international opportunity
The bill, currently being processed in the Paraguayan Congress, is not only of interest to Paraguay, but also to neighboring countries and other international markets. Legalizing cannabis for adult use could position Paraguay as a leader in the export of the plant, strengthening its role as a strategic supplier in the region.
The development of this legal framework promises significant economic benefits for Paraguay and also proposes a model for other countries seeking to regulate the cannabis market. With a solid production infrastructure and a regulatory framework in place, Paraguay is ready to make the most of this historic opportunity, consolidating itself as a reference in the cannabis industry in South America.
Source: https://sechat.com.br/noticia/paraguai-se-posiciona-como-futuro-fornecedor-estrategico-de-cannabis-para-o-brasil
Paraguay positions itself as a future strategic supplier of cannabis to Brazil
