The reforms would allow the legal cultivation of marijuana on Mexican soil after decades of violence between drug cartels and authorities.
The new regulation, signed by Mexican President Andres Manuel Lopez Obrador, will now allow pharmaceutical companies to start conducting medical research on cannabis products.
The ongoing cannabis reform includes the recreational use of marijuana and will create the world’s largest national hemp market by population.
The new medical rules state that companies wishing to conduct research must obtain permission from the Mexican health regulatory authority, COFEPRIS, and that research must be conducted in independent and strictly controlled laboratories.
The regulation also sets out rules for sowing, planting, and harvesting hemp for medicinal purposes, allowing companies to legally grow marijuana on Mexican soil.
Foreign marijuana companies from Canada and the United States are looking with interest in Mexico. Many have delayed making investment decisions due to policy uncertainty and have been awaiting publication of the final rule.
Mexican lawmakers are also in the final stages of legalizing recreational use of marijuana, and the bill is expected to pass in the next term of Congress.
The regulation comes several years after Mexico’s Supreme Court ruled that lawmakers must legalize the use of cannabis.
The legislation marks a major shift in a country spoiled by years of violence between rival drug gangs, which have made millions of dollars from illegally growing marijuana and smuggling it into the United States.