Paraguay Considers Legalizing Recreational Cannabis

LOS ANGELES- Paraguay is evaluating the legalization of recreational cannabis, with the Senate scheduled to vote on a proposal in March 2025. The initiative aims to permit the sale of cannabis in regulated dispensaries, under the supervision of the National Directorate of Health Surveillance and Narcotics, as well as the National Directorate of Tax Revenue.

The proposal includes an economic strategy to attract consumers from Brazil, where the Supreme Court has decriminalized the possession of up to 40 grams of cannabis for personal use. The plan envisions tourists crossing the border to legally purchase cannabis in Paraguayan dispensaries. Currently, Brazilian legislation does not allow cannabis to be transported between countries. However, following the potential reform in March, it is anticipated that transporting cannabis from Paraguay to Brazil may become legal, provided the 40-gram per adult limit is respected.

The measure also seeks to transform Paraguay’s rural economy by encouraging regulated cultivation. Farming families would be compensated approximately $25,000 per hectare (around $10,117 per acre) for legal cannabis cultivation. The raw material would be supplied to factories authorized by the Ministry of Health and subsequently distributed to regulated dispensaries.

In the industrial sector, Paraguay has recently completed its first export of cannabis flowers to Switzerland and is negotiating contracts with Swiss and German companies for monthly shipments ranging from 350 to 400 kilograms, totaling approximately 4 tons annually. These developments position Paraguay as a potential key player in the global cannabis market.

The proposed legislation is pending debate and approval in the Senate. If enacted, Paraguay could become the first South American country to offer cannabis to tourists in a regulated market. The industrial sector continues to grow, solidifying the country’s role in cannabis production and exports.