This story originally appeared on Benzinga
On Wednesday evening, the President of the Republic of Panama, Laurentino Cortizo, signed an Executive Decree approving Law 242, which regulates the medicinal and therapeutic use of cannabis, along with its derivatives, in the Central American country.
Law 242 was sanctioned by President Cortizo in October 2021.
Panama holds the potential of becoming a cannabis hub given its climate, investment-friendly governance framework, and strategic location with large port infrastructure and well-sedimented trade routes. The country is currently hosting LATAM CANNBIZ, currently the largest Latin-American cannabis conference.
What the decree does
The presidential decree creates a regulatory framework that allows the use of monitored and controlled access to medicinal cannabis and its derivatives for therapeutic, medical, veterinary, scientific, and research purposes in Panama as reported by local media. In addition, Cortizo signed a second decree that creates a national directorate for monitoring the administrative and operational activities required for the implementation of Law 242.
This Directorate will be attached to the Ministry of Security (Minseg), will monitor industry-related activities through field visits, and will ensure compliance with the industry guidelines for those interested in producing medical cannabis in Panama. Control includes sanitary registrations.
The decree allows the use of medicinal cannabis by people with a prescription, who will be controlled and supervised through a rigorous and reliable patient registration system.
“The purpose of all this is for Panama to have the best management model for the medical cannabis industry. Our intention is to promote in the medium and long term the establishment of local and foreign companies that can supply the domestic market using raw materials produced in Panama,” Cortizo said.