Why it matters: The Superior Court of Justice in Brazil is set to rule on whether companies and farmers can plant cannabis in the country for medicinal and industrial purposes, which could open the door to legal cultivation after legislative efforts stalled. Medical cannabis is already legal in Brazil, and last year, the court ruled that patients can grow their own cannabis for medical treatment. The ruling from the appeals court may establish a nationwide precedent on the import of cannabis seeds and planting, and immediate implications include freezing all pending cases regarding permission to plant cannabis until a final decision is made.
What they are saying: The biotech company DNA Solucoes em Biotecnologia is arguing for the right to import and plant cannabis with higher levels of cannabinoids for medicinal purposes. The STJ decision to set precedent on the matter was consistent with Brazilian jurisprudence, said Brazilian lawyer Victor Miranda.
The big picture: Brazil currently allows the sale and production of cannabis products, but companies must import key ingredients. Legal cannabis cultivation could make Brazil a trailblazer on a topic spurned by many in the country’s conservative-leaning Congress.
What to watch: The STJ’s final ruling on cannabis is expected within the next year, and it is unknown whether Brazil’s president, Luiz Inácio Lula da Silva, has a concrete plan for cannabis-specific policy. Watch for response and action from the Brazilian cannabis community and potential developments in Brazil’s drug policy.
My take: Legal cannabis cultivation in Brazil for medicinal and industrial purposes could have a significant impact on the global cannabis industry, given Brazil’s ideal tropical climate and potential to become a leading global supplier. The STJ decision to set precedent on the matter is a positive development for the industry, and I will be watching to see how the final ruling affects policy and business opportunities in Brazil.