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From the beginning, marijuana legalization has been a tough sell in the country. Read the other chapters here or download the full PDF. A December Cifra poll found that that 64 percent of Uruguayans opposed marijuana legalization, 10 percent had no opinion, and just 26 percent approved. In response, Mujica put the measure on hold, calling for a longer period of debate in the country. The initiative was revised over the following months, and a far more comprehensive version was introduced in the Chamber of Representatives the lower legislative house in November. Further changes were added as the bill gained the backing of congressmen in the ruling Frente Amplio FA coalition. Unlike its predecessor, the updated bill does not allow the state to have a direct hand in marijuana cultivation or its sale. Instead this will be left to private entities, which will be regulated by a new government agency. The specifics of the bill set it apart from other marijuana legalization initiatives around the world. Download full PDF version of the bill below in Spanish Unlike in the Netherlands, where cannabis cultivation is still technically banned, this will legalize and regulate every step in the process of marijuana production and distribution. In that sense, it is closer in scope to the recent legalization of marijuana in Colorado, where adults are allowed to purchase the drug from licensed shops as well as grow up to six plants for personal use, and the development of a regulatory framework for commercial cultivation is underway. The first of these is home cultivation, in which — like in Colorado — individuals can possess up to six plants in their homes, with a maximum annual yield of grams. Third, the bill authorizes the state to grant licenses for private enterprises to grow marijuana for commercial purposes, though only the government can lawfully purchase this harvest. The registry will be private, not made available to potential or current employers. The bill also establishes strict penalties for giving the drug to minors and driving under the influence of marijuana. The logic behind the bill is straightforward. Marijuana use has been effectively decriminalized in Uruguay since , when a law was passed allowing judges to use their discretion in cases where individuals possess small amounts of illicit substances intended for personal use. The state allows individuals to use the substance, but forces them to buy it on the black market. According to Fernandez, the current government has taken a more relaxed attitude to small-scale marijuana growth, but it was not always that way. Before , it was not uncommon for those arrested with a dozen cannabis plants to face a year in jail, at least. By regulating marijuana, the government hopes to free up police resources to focus on growing insecurity and traffic in more harmful substances, as well as hit the pocketbooks of criminal networks profiting from marijuana sales. According to the estimates of the Uruguayan Association of Cannabis Studies AECU , an organization of experts on cannabis growth, roughly 80 percent of the marijuana smoked in Uruguay comes from Paraguay. The cannabis buds are harvested, dried, and then pressed into bundles either with a hydraulic press or by placing the harvest in bags or between sheets of plastic and burying it in shallow pits. This process is largely done by cultivators in rural areas in eastern Paraguay, who sell the pressed marijuana in bulk to traffickers in the area. These traffickers, in turn, make roughly 35 dollars for every kilo they move, according to Vaz. While some of this product is flown directly to Uruguay on small private planes, most marijuana makes its way into the country by land via Brazil or Argentina. Still, both numbers are small compared to the markets in neighboring Brazil and Argentina. For example, the JND estimate is less than half of the marijuana seized in successful raids by antidrug agents in Argentina last year 54 tons. Exactly how much of this marijuana enters Uruguay from Argentina and how much comes in from Brazil is a matter of debate. In and , Uruguayan officials seized roughly two tons every year 1. According to police, the vast majority of this was seized along the border with Argentina, at customs stations on the three bridges that span the Uruguay River or in the port of Montevideo. Police officials, and most drug experts, believe these are the most common routes for marijuana entering the country. Policing this border is a nearly impossible task. The northeastern border with Brazil is a 1, kilometer-long stretch of land that lays almost entirely unguarded. Rivera has thrived as a result of its location. In the photo of Rivera above, at right is Uruguay, at left is Brazil. Because of the fluid and porous nature of the border there, it is also popular among illicit smugglers. According to Antonio Aguirre, a representative to the Rivera province legislature, this has always been the case, and locals see smuggling as part of the culture. For many the border is an artificial line. Regardless of its entry point, in economic terms the Paraguayan marijuana will be the main competition for the government. In order for the regulation bill to work, the state will have to make the marijuana sold in pharmacies more attractive to users than the imported product, available on street corners in cities and towns across the country. This is no easy task. According to Juan Vaz, purchasing 25 grams of marijuana in Montevideo costs the equivalent of between and dollars. But cannabis experts and activists from elsewhere in the country consulted by InSight Crime suggest this varies considerably depending on location. Obtaining this price point may be the difference between a successful and an unsuccessful bill. Assuming it does not increase significantly, at that price it would definitely undercut the market in Montevideo, home to some 1. That is sure to take a bite out of the profits of drug smugglers, and make the Uruguayan market much less appealing to them. But in the event of any major fluctuation in price, the youth thought to be top consumers of the marijuana may simply opt for the cheaper product, regardless of the quality. It is in these areas that the government hopes to beat the black market in quality rather than price. Compared to the dry, imported Paraguayan product, the state-sold marijuana will be safer and of higher quality. The bill specifically bans legal cultivators from pressing marijuana, a process that is believed to make cannabis less potent, as well as leave it more susceptible to bacteria and fungi. Of course, the IRCCA may alter the price when the bill goes into effect, depending on the associated production and administrative costs. Effective regulation of the marijuana market will require cultivators of all sizes to take precautionary measures to prevent their crop from falling in the wrong hands. For household growers, this is a matter of keeping their six plants indoors or behind locked gates. For membership clubs and licensed commercial growers however, this is a different matter. The future may also bring political pressure for the state to raise taxes on the drug to generate more revenue, which would obviously increase the price and make it less competitive with Paraguayan marijuana. While the bill does not mention any specific taxes on the growth or sale of cannabis, this could change considering the unpopularity of the measure. Polls show that public opinion has not changed on the marijuana issue, with 66 percent of Uruguayans opposing legalization in an April survey. Another argument for leveling taxes on the drug may come from Tabare Vazquez, the former president who is widely expected to win the presidential race in October Excise taxes on cigarettes were a hallmark of a strict, highly successful tobacco regulation law that Vazquez sponsored during his presidency, and he may be more open to leveling taxes on marijuana to discourage its use. If politicians succumb to pressure to limit the scope of marijuana regulation by tampering with the availability or price of the drug in pharmacies, then the initiative will be doomed to failure. Marijuana users are already being forced into a vulnerable position by submitting their names to a federal registry. While this database cannot legally be shared with employers, it provides an undeniable incentive for users to keep buying the drug from their regular suppliers rather than going the legal route. For those that remain willing to purchase from pharmacies, raising the price could be the final straw. As long as the law is implemented well, the proper security measures are followed and the price of the drug is kept low enough to be competitive, the bill will likely drastically reduce the black market for cannabis in Uruguay. Because of its high degree of accountability, its strong state presence and stable government, it is difficult to imagine a better country in Latin America than Uruguay to experiment with marijuana legalization. Subscribe to our newsletter to receive a weekly digest of the latest organized crime news and stay up-to-date on major events, trends, and criminal dynamics from across the region. Donate today to empower research and analysis about organized crime in Latin America and the Caribbean, from the ground up. Skip to content. Stay Informed With InSight Crime Subscribe to our newsletter to receive a weekly digest of the latest organized crime news and stay up-to-date on major events, trends, and criminal dynamics from across the region.

Uruguay’s Marijuana Bill Faces Political, Economic Obstacles

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