The signature of President Carlos Alvarado to Law No.10113 entitled "Cannabis Law for Medicinal and Therapeutic Use and Hemp for Food and Industrial Use" just legalized medical cannabis in Costa Rica.

The law allows for access and use of cannabis and its derivatives for medicinal and therapeutic use. This order caters to the fundamental right to health of the entire population.

“The signing of this law demonstrates the confidence in the capacity for dialogue of all the actors involved and in the political will so that these solutions are taken expeditiously to benefit the people who need medicines made with these products and at the same time promote and support agricultural production,” Alvarado said.

This is the second time that Congress has approved the cannabis legalization law. In January, President Alvarado had vetoed part of the original text in aspects related to domestic cultivation for self-consumption of cannabis and its products or by-products.

The new law does not allow self-cultivation and self-consumption of the cannabis plant for medicinal uses. But it does authorize the production and commercialization of hemp for industrial and food use.

"This new law strengthens the possibilities that citizens have to take advantage of the medicinal uses of Cannabis," said Daniel Salas, Minister of Health. "We appreciate the affirmative action of the deputies that today allows us to have a new law in the protection of public health and for the therapeutic benefit of patients."

The law has the goal of promoting economic development through the production, industrialization and commercialization of hemp and medicinal cannabis and its derivatives products.

Companies producing or marketing marijuana products must pay a 1% special tax on profits. The resources generated from that tax would be used for programs to support producers of medicinal cannabis and industrial hemp. It also finances research on the use of the plant. As well as to cover expenses on operations and programs to fight the illegal market.

Of the total number of companies authorized to cultivate the plant, 40% must be granted to small businesses or individual entrepreneurs.

Companies producing marijuana for industrial, medical or therapeutic purposes can operate within Industrial Trade Zones, which would allow them to receive the incentives, benefits and conditions that these business zones offer.