With the entry into force of Law 242, which is expected to be regulated in the course of 2022, Panama becomes one of the pioneers in the Latin American region to enter a market that has experienced rapid growth in recent years.

MONTHLY NEWSLETTER THE LAW FIRM OF CENTRAL AMERICA

Through Law No. 242 of October 13, 2021 ("Law 242"), Panama becomes the first country in Central America to legalize the medicinal and therapeutic use of cannabis and its derivatives.

Law 242 regulates the use and controlled access of medicinal cannabis for therapeutic, medical, veterinary, scientific and research purposes; as well as the monitoring and control of import, export, cultivation, production, manufacturing, laboratory analysis, acquisition, storage, transportation, marketing, distribution and final disposal of cannabis seeds and plants and their derivatives.

Among its most relevant elements are the following:

I. Control and Surveillance Authorities:

It is established that all products derived from cannabis, for medical and research purposes, will be subjected to a system of surveillance and supervision by the control authorities.

For the purposes of Law 242, the competent authorities will be:

  • Ministry of Health: entity in charge of issuing licenses that allow the import, export, commercialization, manufacture and sanitary registration of cannabis derivatives, thus exercising administrative and operational control of the activities related to its management and;
  • Ministry of Agricultural Development: it will be the competent authority to exercise administrative control in activities related to the management and use of seeds for planting and growing plants.

Additionally, Law 242 grants specific functions to the Ministry of Public Security, National Customs Authority and the Ministry of Commerce and Industries, for the fulfillment of their objectives.

II.Patient Registry:

Law 242 creates the Registry of Patients Users of Cannabis and its Derivatives for Medicinal and Therapeutic Use, which must include at a minimum, information on the disease and the authorized treating physician, as well as the prescribed dose and frequency of treatment. Said registry will be confidential and the authorities must guarantee the protection, at all times, of the identity and privacy of patients and their conditions.

III.Licenses:

Law 242 establishes a licensing regime, granted only to legal entities duly registered in the Public Registry of Panama, which will be mandatory and will be subject to the observance of special requirements prior to issuance.

In this sense, two types of licenses are recognized, namely the license for the manufacture of medicinal cannabis derivatives and the license for scientific research on medicinal cannabis.

In addition, for the use of seeds and plant cultivation, an authorization must be obtained from the Ministry of Agricultural Development and it will only be issued to authorized licensees.

With the entry into force of Law 242, which is expected to be regulated in the course of 2022, Panama becomes one of the pioneers in the Latin American region to enter a market that has experienced rapid growth in recent years.