Caribbean cannabis industry: the regulation and export story behind the headlines

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Summary: Several Caribbean nations have been building legal cannabis industries focused on regulated domestic sales, medicinal products, and eventual exports. Producers argue that over‑regulation keeps most demand in illicit markets, while policymakers and researchers point to potential benefits ranging from medical uses to agricultural research.

This is primarily an industry and regulation story: how a region with long cultural association with cannabis is trying to convert that legacy into legal economic activity—while navigating US and international rules.

What was reported (key facts)

From the BBC report:

  • Antigua and other Caribbean nations have legalized or decriminalised aspects of cannabis production and sale over the last decade.
  • Legal markets often require medical authorisation cards and have high compliance overhead.
  • Producers say domestic overheads and restrictions can leave most sales in illicit markets.
  • Antigua’s authorities have tried a “transition” approach for illegal growers (education and pathways to legal participation rather than prosecutions).
  • Jamaica established frameworks and is exploring export procedures subject to import permits and foreign laws.
  • There is interest in exports, especially if US policy continues to evolve (though federal legality remains a barrier).

Why this is not just “legalisation” but market design

A legal cannabis market has multiple design choices:

  • who can grow (licensing)
  • where it can be sold (dispensaries, lounges)
  • who can buy (medical vs adult-use)
  • product standards and testing
  • taxation levels

If regulation is too strict or taxes too high, the illicit market often remains dominant.

The report cites estimates that in some markets a large share of consumption still comes through illicit channels. That is a common outcome when legal supply is expensive and access is restricted.

The Caribbean’s potential advantage: climate and cultivation knowledge

Producers argue the region has:

  • favourable climate
  • established cultivation knowledge
  • unique strains

Those are real advantages in agricultural production.

But modern legal markets also require:

  • consistent quality control
  • lab testing
  • packaging standards
  • traceability

This is where “traditional knowledge” has to be matched with industrial discipline.

Research and medicine: why policymakers emphasise this angle

The report references university research into potential benefits of cannabis.

For governments, a medical/research framing can:

  • reduce political backlash
  • create legitimacy for regulation
  • open pathways for higher-value products (extracts, pharma, wellness)

It also shifts the narrative from “recreational drug” to “regulated health and science.”

Exports: the US shadow over Caribbean policy

A central theme is that US law shapes Caribbean policy.

Even if US states legalise recreational use, federal law can still block:

  • imports
  • banking and payments
  • international trade

So Caribbean export ambitions depend on:

  • the legal status in the destination market
  • import permits
  • product standards and certifications

The report suggests producers see potential if US scheduling and policy shifts continue.

Social justice and historical context

The report notes that cannabis criminalisation historically harmed communities (including Rastafarians in Antigua).

Legalisation and expungement policies can be seen as:

  • economic opportunity
  • partial remedy for past enforcement harms

But social justice goals can clash with market realities if:

  • licensing is expensive
  • compliance favours large companies
  • small growers can’t transition

That’s why Antigua’s “training and transition” approach is notable: it tries to pull people into the legal economy rather than simply punishing them.

The business challenge: compliance vs profitability

Legal producers face costs illicit dealers don’t:

  • staff
  • rent and security
  • testing
  • regulatory paperwork
  • licensing fees

If the legal product cannot compete on price or convenience, the market stays illegal.

So the success of legalisation depends on whether regulation is designed to:

  • protect health and safety
  • while still enabling a viable legal industry

What to watch next

  1. Regulatory liberalisation: changes that expand legal access without removing safety standards.

  2. Export frameworks: formal procedures, permits, and destination agreements.

  3. Illicit market share: whether legal supply gains meaningful market share over time.

  4. Research outputs: whether medical/agricultural research produces new products or best practices.

  5. Inclusive participation: whether small growers can transition into legal markets.

Bottom line

The Caribbean cannabis story is less about cultural stereotypes and more about industrial policy: building a regulated market that is safe, economically viable, and inclusive.

Whether it succeeds will depend on regulation design and international trade realities—especially US federal law.

Sources

n English