In response to fears around public security, and despite public opposition, the Uruguayan government legalised recreational use of cannabis in 2013.[1] The government-controlled market is regulated by the new cannabis regulatory agency (the IRCCA) and advertising is prohibited in all its forms.

Uruguayan citizens and permanent residents (not tourists) who are 18 years or older and want legal cannabis have to register for use and choose one method of:

  • Home growing (limited to six plants with a total annual production not exceeding 480 grams);
  • Cannabis social clubs (with limits for the number of members and plants) or
  • Purchasing from an authorised pharmacy that is supplied by licensed producers (limited to 10 grams per week or 40 grams per month).

Implementation of the law has been slow, with sales at pharmacies only commencing in 2017. The government has full control over large-scale cannabis production, limiting licenses to companies who can grow recreational cannabis (so far five) and limiting the number of pharmacies that are authorised to sell it (so far 17). There is strict separation of production and supply. Only raw plant material with a maximum THC content of 9% is available for legal purchase at a fixed price set by the government – no edibles, oils, concentrates or alternative products can be sold. Driving under the influence is a criminal offence with a zero-tolerance THC threshold if drivers are tested. Wherever it is illegal to smoke cigarettes (e.g. enclosed public areas) it is also illegal to smoke cannabis.

Very few studies of the impacts of legalisation in Uruguay have been undertaken, so little is currently known about the public health or social impacts of legal recreational cannabis. The IRCCA reports (in Spanish) on cannabis statistics quarterly. Due to supply issues and reluctance of people who use cannabis to register for use, approximately 90% of cannabis is still sold through an illegal trade but an increasing proportion of users are served through the legal market for some purchases (54% as of Jan 2019).[2] Of those who do register, purchase through pharmacies is the preferred method, followed by home grow then social clubs, for registered users.[3] Frequent users rely on multiple methods to access cannabis, with the illegal cannabis trade remaining because of supply shortages and tourists wanting access.

The evidence so far indicates that rates of lifetime cannabis use continued on the same increasing observed before legalisation: from 5.3% in 2001 to 20.0% in 2011 and to 33.6% after legalisation in 2016. Cannabis use in the last 12 months also increased from 1.4% (2001) to 8.3% (2011) to 15.4% (2016).[4] A study found no evidence that cannabis legalisation impacted rates of adolescent cannabis use or their perceived risk of cannabis, but that it increased their perception of cannabis being available.[5] A single study found a correlation between increased traffic fatalities and legalisation of cannabis, but had many limitations, including that it did not test for THC levels in drivers, did not have a credible control group, and has not been replicated.[6]

There is significant opposition to legalisation, with people believing that the new cannabis law will worsen public security conditions, serve as a gateway to the use of harder drugs, and will be ineffective at stopping illegal drug trafficking[7] – however, people who use cannabis overwhelmingly support the current regulation even though many of them are reluctant to register.[8] People who use cannabis perceive social clubs positively, but there are concerns that genuinely social cannabis social clubs may be losing ground to quasi-dispensary clubs.[9]

How does this compare to Aotearoa New Zealand’s proposed law?

Compared to Uruguay’s government-controlled legal cannabis market, Aotearoa New Zealand’s proposed regulatory system for legal cannabis will be more commercial. The not-for-profit aspects of Uruguay’s cannabis social clubs may be able to be mirrored in Aotearoa New Zealand’s licensed consumption premises, but a distinct difference is that our proposed law does not allow for an organisation to grow cannabis of behalf of customers.

Aotearoa New Zealand’s purchase and home grow limits and maximum potency are higher than those in Uruguay and there are no limits on annual production from home grow or requirements for user registration. Compared to Uruguay’s strict limit on product types, Aotearoa New Zealand’s proposed law allows a wide range of products, including edibles, oils, creams, etc. Aotearoa New Zealand will not have a fixed price as regulated in Uruguay, but will have an excise tax. While Uruguay’s age limit to purchase cannabis mirrors that for alcohol, Aotearoa New Zealand’s does not.

Person's hands holding a cannabis leaf-shaped placard that says 'legalise Urugauy 2012'

References

[1] Cerdá et al., “Uruguay’s Middle-Ground Approach to Cannabis Legalization,” The International Journal on Drug Policy 42 (2017); Kilmer, “How Will Cannabis Legalization Affect Health, Safety, and Social Equity Outcomes? It Largely Depends on the 14 Ps,” The American Journal of Drug and Alcohol Abuse 45, no. 6 (2019/11/02 2019); Obradovic, “From Prohibition to Regulation: A Comparative Analysis of the Emergence and Related Outcomes of New Legal Cannabis Policy Models (Colorado, Washington State and Uruguay),” International Journal of Drug Policy (2019)

[2] Obradovic, “From Prohibition to Regulation: A Comparative Analysis of the Emergence and Related Outcomes of New Legal Cannabis Policy Models (Colorado, Washington State and Uruguay),” International Journal of Drug Policy (2019)

[3] Pardal et al., “Uruguayan Cannabis Social Clubs: From Activism to Dispensaries?,” International Journal of Drug Policy 73 (2019)

[4] de Drogas, “Vi Encuesta Nacional En Hogares Sobre Consumo De Drogas, 2016,” Informe de investigación (2018)

[5] Laqueur et al., “The Impact of Cannabis Legalization in Uruguay on Adolescent Cannabis Use,” International Journal of Drug Policy 80 (2020)

[6] Nazif-Munoz et al., “The Association between Legalisation of Cannabis Use and Traffic Deaths in Uruguay,” Addiction (2020)

[7] Cruz et al., “Saying No to Weed: Public Opinion Towards Cannabis Legalisation in Uruguay,” Drugs: Education, Prevention and Policy 25, no. 1 (2018)

[8] Boidi et al., “Cannabis Consumption Patterns among Frequent Consumers in Uruguay,” International Journal of Drug Policy 34 (2016)

[9] Pardal et al., “Uruguayan Cannabis Social Clubs: From Activism to Dispensaries?,” International Journal of Drug Policy 73 (2019)