Aruba requires urgent economic diversification
The corona crisis exposed the soft underbelly of a country which is almost fully reliant upon one industry as its sole source of income, i.e. tourism. Aruba requires urgent economic diversification. Attempts to reopen the refinery failed which left us with an evident alternative: the demonstrably lucrative industry of Cannabis and Cannabis-derived products. The Aruba government appears to be considering a shift toward the latter, more specifically Medicinal Cannabis, as an additional source of income.
Secondary legislation introduced
In December of 2019, certain Ministerial Regulations were issued in regards to Cannabidiol (CBD).
The Ministerial Regulation AB 2019 no. 83 excludes CBD products with no more than 0.2% THC (Tetrahydrocannabinol, the main psychoactive ingredient in Cannabis that causes the ‘high’ effect) from the legal definition of a narcotic as defined by the Aruba Ordinance on narcotics (Landsverordening verdovende middelen), effectively making said products legal.
Concurrently, two other ministerial regulations (AB 2019 nos. 82 and 84) were issued which label CBD products with a maximum of 0.2% THC as a medicine or as a supplement, respectively. Aforementioned distinction is relevant, because a medical prescription is only required for medicine as defined in the Ordinance on the provision of medicine (Landsverordening geneesmiddelenvoorziening). Supplements, if not considered medicine, may be sold over the counter without a prescription.
Above-mentioned regulations were in line with a report dated July 3rd, 2019 from the Ministry of Tourism Public Health and Sports and approved by the Council of Ministers (Startnota Medicinale Cannabis), which acknowledges the therapeutic benefits of Medicinal Cannabis and aims to provide patients in Aruba with the option to choose for alternative medicine, including Medicinal Cannabis.
Request for Expression of Interest (REOI)
On March 2nd, 2020, the Minister of TPHS issued a so-called Request for Expression of Interest (REOI) and announced the intention to issue a limited amount of licenses to legally cultivate Cannabis in Aruba.
The REOI was not intended as a public bid for licenses. Third parties were solely invited to express their interest into forming part of the Medicinal Cannabis industry of Aruba. The parties would enter into a commercial relationship with a government entity for which certain minimum requirements apply.
Interested parties should, among others:
- comply with the legal framework as well as certain certification and sustainability requirements.
- comply with the location requirement, i.e. the facility should be located in a zone designated for in- or outdoor agriculture or industrial/pharmaceutical processes in conformity with the Spatial Development Plan for 2019 (ROP 2019) and the draft Spatial Development Plan with Regulations (ROPV).
- Provide information on the manpower for the first 3 years of production.
- Provide information on the expected revenues for the government treasury in the form of license fees, inspection and certification fees, other revenues for the government entity (e.g. dividend payments) and tax revenues.
The deadline for filing was on April 6th, 2020 at 8 P.M. However, everything including the REOI has been kept on the back burner since the start of the crisis back in March. It could be argued that the deadline was deferred due to the crisis.