Outlook For Cannabis Liberalization And CBD Market Authorization In Laos – Cannabis & Hemp

People’s Democratic Republic of Laos: Outlook on cannabis liberalization and approval of the CBD market in Laos

July 29, 2021

Tilleke & Gibbins

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In recent years, many countries have begun to study the pharmacological effects of the cannabis plant and the economic benefits of cannabis liberalization. Laos’ neighbor Thailand, for example, has been cautious about legalizing cannabis and hemp for medical purposes and to stimulate the Thai economy. Authorities in Laos are also exploring the possibility of opening some of the country’s strict bans on CBD and medicinal cannabis. Little has been done to date, however, and the use, production and commercial use of cannabis – including the cultivation and marketing of hemp products – remain strictly prohibited. Those who market products related to hemp or CBD in Laos currently run the risk of criminal or civil liability.

Legal landscape and enforcement risks

The cannabis plant (Cannabis sativa L.) is primarily known to produce two compounds: tetrahydrocannabinol (THC), a psychoactive substance, and cannabidiol (CBD), a non-psychoactive compound with several beneficial pharmacological effects. A cannabis plant with a relatively high THC content that exerts psychoactive effects is called “marijuana” (Cannabis sativa L. subsp. Indica), while a cannabis plant with very little THC is called “hemp” (Cannabis sativa L. subsp . sativa.). ).

Marijuana and hemp are not defined under Lao law, and the Laotian authorities usually assume that marijuana is synonymous with the cannabis plant, regardless of the amount of THC in the plant. The Narcotics Act No. 10 / NA of December 25, 2007 prohibits the use of narcotics in Laos. The decree for the implementation of the Narcotics Act No. 076 / PM of March 20, 2009 declares the “cannabis plant” to be a narcotic-producing plant, forbids its cultivation and possession and officially places THC on the state’s list of prohibited narcotics. Since CBD is extracted from the cannabis plant, products containing the compound are likely to be banned as well.

The Criminal Code No. 26 / NA of May 17, 2017 prohibits all activities related to the cultivation, trading and possession of marijuana (here everything means cannabis) and imposes a penalty for violations from three months to life imprisonment and fines of 500,000 LAK fixed -200 million (approx. 52-21,200 USD), depending on the type of goods and activity.

Prospects for cannabis liberalization in Laos

In 2019, the Laotian government set up an ad hoc committee to determine whether legalizing hemp cultivation in Laos for medical purposes is feasible and whether the country could benefit from such a policy. With this in mind, the country’s authorities have allowed some local businesses to pilot programs to grow hemp in specific areas, while maintaining the strict general ban on the cultivation and marketing of hemp products.

This change in authorities ‘views on hemp products could demonstrate their interest in diversifying Laos’ sources of income. The country’s efforts to expand its market potential are not surprising, as it has developed trustworthy labels to promote the “Made in Laos” brand and registered geographical indications (e.g., Bolaven Coffee, Khao Kai Noy Reis) to foreigners To conquer markets. The market potential of hemp, the future of the CBD market and the potential impact of these products could lead the Laotian authorities to liberalize cannabis, or at least liberalize the production, extraction and commercial use of CBD in Laos – its economic benefits could outweigh the negative Mitigate the impact of COVID-19 on the Laotian economy.

Globally, the outlook for cannabis and CBD-related products is good as different countries (such as Canada and the US) liberalize regulations for cannabis and CBD-related products. In Europe, based on the recent ruling of the EU Court of Justice and the regional support for the liberalization of restrictions and the commercialization of CBD products, a more tolerant approach towards CBD products could soon be chosen in order not to violate the principle of the free movement of goods in the European internal market .

In Laos, this global trend towards recognizing the positive effects of cannabis, and especially CBD, may inspire the country to encourage the development of high quality CBD-containing products and to revise its legal framework for cannabis and CBD. Manufacturing these products in Laos could potentially bring further economic growth to the country through direct revenue, investments in research and development, building a scientific infrastructure and building local expertise on the subject – all of which could generate sustainable FDI in the future.

The content of this article is intended to provide general guidance on the subject. Expert advice should be sought regarding your specific circumstances.

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