How will legal cannabis firms navigate Mexico’s business risks?

The Mexican senate is expected to take up cannabis legalisation this month and big international firms are eager to profit from the country’s market. But will corruption and extortion be part of the cost of doing business?

Mexico City, Mexico – Legal cannabis is coming to Mexico, and many foreign investors are chomping at the bit. Mexico has been inching closer and closer to full legalisation ever since its Supreme Court of Justice ruled in 2018 that banning the drug was unconstitutional. In January, the country’s health ministry laid out regulations for its use for medical purposes. Now, a bill to legalise recreational use by people over the age of 18 is in the hands of the country’s Senate of the Republic, which is expected to vote on it this month.