Thailand Positioning Itself as A Global Player in Cannabis

Editor’s note – This article was written by Kight Law attorney Anthony Traurig. Anthony spoke at the Asia International Hemp Expo & Forum (AIHEF) earlier this month and is excited about Thailand’s emerging cannabis market. This is his report. -Rod

Thailand is positioning itself as an emerging player in the global trade of cannabis. I had the privilege of having a front row seat to the excitement surrounding the opportunities in cannabis that are before Thailand, as I participated at AIHEF last week.

The event brought stakeholders from across the globe to share their expertise. There were strong contingents from the United States and Japan, while regional stakeholders from Malaysia and Mongolia took part, hoping that those nations would follow Thailand’s lead in Asia.

Thailand legalized the entire cannabis plant – regardless of THC concentration – in a dramatic change in 2022, while also legalizing extracts with up to 0.2% THC. The reform was a seismic shift for a country which had a reputation for drug-testing tourists for cannabis use in previous years.

In legalizing cannabis, the Thai government saw a tremendous economic opportunity while also stressing the many medical benefits of cannabis, in which it has a rich tradition dating back centuries. Although the government supported the medical uses of cannabis, the law that legalized the cannabis plant made no restrictions on its use, leading to thousands of dispensaries popping up across the country selling cannabis products without a prescription.

The government has been uniquely engaged with industry stakeholders, as was evident at the AIHEF. Representatives from the Thai Ministry of Health and the Department of Thai Traditional and Alternative Medicines (DTTAM) spoke at the event and expressed the government’s firm understanding of the medical and economic benefits of the cannabis plant. Industry groups, including the Thai Industrial Hemp Trade Association (who organized the event) and the National Industrial Hemp Council of America also participated.

The topics discussed at the AIHEF ranged from the many industrial uses of hemp to cannabinoid hemp to medical cannabis.

I had the honor of speaking on a panel about global trends in the regulation of cannabis, accompanied by other industry experts, including the Deputy Director-General of the DTTAM.

I spoke about the many opportunities in the global cannabinoid market, including in countries like Germany, Australia, Israel, and Poland, to name a few. I emphasized the importance of cannabis operators to diversify their business, so as not to be susceptible to having their business crippled by a single new regulation. This can be done by diversifying the markets that they operate in, the product formats that they offer, and the regulatory frameworks in which they operate. I highlighted the ways that Kight Law is able to help in this regard and assist companies looking to expand their business internationally.

Gearing up for exports

One of the themes of the event that was made clear both by government officials and cannabis companies in attendance is the desire to reap the economic benefits of cannabis through exporting it. It is important to note that imports into Thailand are very limited and are only allowed for a few exceptional purposes.

A few companies have already begun exporting cannabis from Thailand, namely to Japan and Australia, but the process is still very much in its infancy. Some issues are still likely to need to be ironed out – such as GACP and GMP compatibility – particularly when looking to enter the European market.

Most of the many cultivators and manufacturers that I spoke with expressed a desire to export and were in the process of obtaining Thai GACP or GMP certification. Few companies, though, had already obtained certification. This suggests that Thailand is still many months away from staking a significant share of the global cannabis trade market, but it likely will in due time.

Thailand is positioning itself well to be an export market for medical cannabis. It boasts the ability to harvest four times per year with low production costs. It is also an outlier in Asia in terms of its forward view on cannabis regulation and trade. It could become a major supplier in countries like Japan and the Philippines, should the latter push through reforms currently under consideration. In the short term, Thai exporters are likely to focus on Australia, New Zealand, and trying to get into Europe.

Reforms coming?

Much of the regulatory discussions at the event centered on a couple proposals that have been presented recently by the Ministry of Health.

The draft Cannabis and Hemp Act, proposed in September, would regulate cannabis broadly, including licensing, allowed usage, and exporting. This version would not explicitly prohibit recreational cannabis if the products comply with specific regulations based on their product format. Earlier versions sought to limit cannabis to strictly medical and scientific purposes, but political maneuvering by the Bhumjaithai Party, which spearheaded legalization after the ouster of the former Prime Minister in August, led to more permissive language being included in the proposal.

The Cannabis and Hemp Bill has been approved by the Cabinet but must still go before the Parliament. Many local stakeholders are skeptical, though, that the bill will pass in its current form.

Notably, government officials focused their comments on the industrial and medical uses of cannabis while avoiding mentioning recreational use.

The second proposal under consideration is a bill that would regulate the production, sale, import, and export of cannabis extracts, including licensing and purposes for which they may be done. If approved, the proposal would provide much-needed clarity about how and when extracts may be used and traded.

The AIHEF was a strong showing both by the Thai government and many industry stakeholders that Thailand will soon be a significant global player in the cannabis trade and a leader in a region with tremendous long-term potential.

If you are interested in understanding how to expand your cannabis business internationally or the global opportunities that might be advantageous to your business, please do not hesitate to contact Kight Law Office.

December 14, 2024

Kight Law attorney Anthony Traurig is a legal consultant on the global regulation of cannabis. Residing in Barcelona, Spain, Anthony has advised clients on expanding into international markets for many years as a Senior Legal Analyst at CannIntelligence. (He continues working with them as a Senior Advisor.) Anthony has worked with companies of all sizes and from all corners of the globe helping them identify enticing markets to expand into, understand requirements for market entry, and track the latest developments in the global cannabis sector.