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Law 242 of 13 October 2021 legalized medicinal cannabis and subjects the import, cultivation, acquisition and marketing of cannabis seeds and plants to licences granted only to legal entities registered in Panama, with the Ministry of Agricultural Development (MIDA) controlling authorizations for seeds destined for planting. Law 464 of 2025 recognized hemp at up to 1% THC and legalized hemp-derived CBD, again through regulated channels. Unlicensed purchase, possession or gifting of viable seed remains punishable under the Penal Code's drug provisions, and there is no recreational market.
