Vanuatu has become one of the first countries in Oceania to allow companies to cultivate cannabis for medicinal and industrial purposes, after the government enacted a law allowing the import, cultivation, processing and export of this plant.
The new law was signed into law on the 9th of this month by the Minister of Agriculture, Nako Natuman.
Individuals or businesses wishing to legally cultivate cannabis for medical and industrial purposes in Vanuatu will be able to apply for a license as soon as the regulations come into force. They will have to submit a number of documents in their license application, such as proof of at least 10 years’ experience, a business plan and proof of land ownership or a copy of the lease.
The experience requirement means that only foreign companies in the country already working in cannabis, such as some companies from the United States or Canada, will be able to obtain a license.
As a first step, the government made available five licenses valid for 10 years, two for the cultivation of medical cannabis and three for industrial hemp, to be renewed each year upon payment of a tax of 10 million vatus (nearly of €79,000).
According to the director general of the Vanuatu Ministry of Agriculture, Moses Amos, the number of licenses could increase once the government fully understands how this activity works.
Mr Amos, who is also chairman of Parliament’s advisory committee on medical cannabis and industrial hemp, told local broadcaster VBTC that these policies are aimed at encouraging foreign investment in the country.
“The government is particularly focused on alternative resources that we can use, and one of them is industrial hemp and medical cannabis,” he said. “It is a potential resource that we can use and develop into an export product and at the same time bring money into the country. »
Vanuatu, which until recently criminalized cannabis entirely, decided to change its relationship with the plant after partnering with an American medical cannabis company.
In March 2019, Phoenix Life Sciences opened its first clinic in the country to test a cannabis-based drug on patients with diabetes. In 2020, the company reached an agreement with the government to use its products to treat cancer and autoimmune diseases in hospitals.
Shortly thereafter, the government sought to amend its Dangerous Drugs Act to allow the commercial cultivation of cannabis: the amendments were enacted in 2021.
