What U.S. Cannabis Rescheduling Means for International Trade

By Mariana Larrea Arias

On December 18, 2025, President Donald Trump signed an executive order directing federal agencies to reclassify marijuana from Schedule I to Schedule III of the Controlled Substances Act.¹ If implemented through the required administrative process, the move could mark a significant shift in U.S. cannabis policy with implications extending well beyond domestic borders.

The decision has been compared to the United Nations’ 2020 vote to remove cannabis from its most restrictive classification.² For the international cannabis industry, however, the most consequential implication is not what this means for U.S. state markets, but how it may affect international trade.

For the first time since prohibition, the United States could establish a legal basis to participate in regulated international cannabis commerce. That potentially includes imports, exports, and bilateral trade arrangements within medical and pharmaceutical frameworks. For cannabis-producing countries in Latin America, Europe, and other regions, the signal alone is significant.

At the same time, the policy shift highlights the fragmented nature of U.S. cannabis regulation. Just five weeks earlier, on November 12, 2025, President Trump signed legislation sharply restricting hemp-derived products.³ These parallel developments underscore why international stakeholders must carefully distinguish between policy direction and regulatory execution.

What Actually Happened: Three Policy Shifts in Two Months

To understand the current landscape, three distinct federal actions matter:

November 12, 2025 — Hemp Restrictions:
New federal legislation limits legal hemp products to 0.4 milligrams of total THC per container and bans synthetic cannabinoids such as delta-8 and delta-10. Industry estimates suggest the measure could eliminate up to 95% of the existing $28 billion U.S. hemp market.³

December 18, 2025 — Marijuana Rescheduling:
An executive order directs the Attorney General to complete the administrative process required to move marijuana from Schedule I to Schedule III.¹

December 18, 2025 — CBD and Medicare Policy Direction:
The same executive order instructs federal agencies to work with Congress on regulatory frameworks for CBD products and to explore potential Medicare coverage pathways for seniors, including reimbursement mechanisms beginning as early as April 2026, subject to legislative and agency action.¹

The apparent contradiction reflects policy prioritization rather than reversal. Hemp restrictions target intoxicating products sold through largely unregulated channels, an issue raised by state attorneys general and public health authorities. Rescheduling, by contrast, reflects federal recognition of medical cannabis’s therapeutic potential, particularly for chronic pain management among older adults, a key demographic for CBD use.

Legal Definitions: Cannabis, Marijuana, and Hemp

For international readers, U.S. cannabis policy is best understood through its legal distinctions.

Cannabis refers to the plant species (Cannabis sativa L.), botanically uniform across varieties.

Marijuana under U.S. federal law refers to cannabis and its derivatives classified as controlled substances—currently Schedule I—subject to rescheduling under the executive order.⁴

Hemp is legally defined as cannabis containing no more than 0.3% delta-9 THC by dry weight.⁵ Hemp has been federally legal since 2018, though recent legislation has narrowed permissible product categories.

These parallel legal tracks explain why marijuana may move toward medical legitimization while hemp-derived intoxicants face new restrictions.

Historical Context: The U.S. Follows a Global Trend

The United States is not acting in isolation. In December 2020, the UN Commission on Narcotic Drugs voted to remove cannabis from Schedule IV of the 1961 Single Convention, acknowledging recognized medical value.²

Mexico moved earlier. Amendments to the General Health Law in 2017 legalized medical cannabis with up to 1% THC.⁷ Subsequent Supreme Court rulings between 2017 and 2021 established that absolute prohibition was unconstitutional.⁸ By 2021, Mexico issued comprehensive medical cannabis regulations through COFEPRIS.¹⁰

Seen in this context, U.S. rescheduling represents part of a broader international progression rather than a unilateral shift.

The Regulatory Process: What Happens Next

The executive order does not itself reschedule marijuana. It initiates an administrative process involving multiple agencies:

DEA final rulemaking, following review of the May 2024 proposed rule and nearly 43,000 public comments⁹
Administrative hearings to evaluate scientific and medical evidence
Publication of a final rule, effective 30–60 days after issuance
FDA development of medical cannabis standards, including manufacturing, labeling, testing, and prescribing frameworks
DEA registration systems for Schedule III handling
State-level implementation, determined individually
Banking and tax adjustments, including resolution of Section 280E implications

This process will take time. While final rules may emerge in 2026, Schedule III classification establishes a medical regulatory framework—it does not legalize adult-use cannabis at the federal level.

The International Trade Implication

For the global cannabis industry, the most significant implication of Schedule III classification is its potential effect on cross-border trade.

As a Schedule I substance, marijuana cannot legally be imported or exported. Schedule III status creates a legal pathway—subject to DEA licensing, FDA oversight, and treaty compliance—for regulated medical cannabis and cannabinoid trade.

If implemented, this would allow for:

Importation of cannabis materials and products into the U.S.
Exportation of U.S.-produced medical cannabis products
Participation in bilateral or multilateral trade arrangements
Greater regulatory clarity for cross-border investment flows

This would not constitute open cannabis trade. Any international commerce would remain tightly controlled. Nevertheless, the shift would allow the U.S. to formally engage with existing global medical cannabis markets.

Countries such as Colombia and Uruguay have exported cannabis-derived products since 2018–2019.¹¹ These jurisdictions already operate within international compliance frameworks, offering potential entry points as U.S. policy evolves.

Mexico as a Case Study

Mexico illustrates the gap between regulation and implementation. Despite having medical cannabis regulations in place since 2021, the industry remains in development. Licensing pathways exist, but building infrastructure and supply chains takes time.

What Mexico offers is regulatory clarity, pharmaceutical capacity, lower operating costs, and strategic geographic positioning—advantages shared by several Latin American producers.

What This Means for International Stakeholders

U.S. rescheduling will not be immediate, nor will its effects be uniform. Regulatory development, state adaptation, and financial system adjustments will unfold over years, not months.

Still, the trajectory is clear. For countries with established medical cannabis frameworks, the potential to engage with the U.S. market—whether through exports, imports, or investment—moves from theoretical to plausible.

The contradiction between tightening hemp restrictions and advancing marijuana rescheduling reflects the complexity of U.S. drug policy rather than inconsistency. For international markets, the key question is no longer whether the U.S. will engage globally, but how—and which jurisdictions are positioned to participate as the world’s largest cannabis market enters the international conversation.

About the Author

Mariana Larrea Arias is a Mexican attorney specializing in cannabis, life sciences, and regulatory law. She is the founder of MLA Legal and Consulting Boutique in Mexico City and advises international clients on cross-border cannabis commerce. She teaches regulatory law at Tecnológico de Monterrey and UNAM.

References

The White House. (2025, December 18). “Increasing Medical Marijuana and Cannabidiol Research.” Executive Order. Available at: https://www.whitehouse.gov/presidential-actions/2025/12/increasing-medical-marijuana-and-cannabidiol-research/
United Nations. (2020, December 2). “UN Commission Reclassifies Cannabis, Yet Still Considered Harmful.” UN News. Available at: https://news.un.org/en/story/2020/12/1079132
Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026. Pub. L. No. 119-37, § 781 (2025).
Controlled Substances Act, 21 U.S.C. § 802(16) (2018).
Agriculture Improvement Act of 2018 (Farm Bill), Pub. L. No. 115-334, § 297A, 7 U.S.C. § 1639o (2018).
U.S. Hemp Roundtable. (2025, November). “Statement on Hemp Provisions in Government Funding Bill.” Press Release.
Decreto por el que se reforman y adicionan diversas disposiciones de la Ley General de Salud. Diario Oficial de la Federación (June 19, 2017).
Suprema Corte de Justicia de la Nación (SCJN). (2021). “Elimination of the Absolute Prohibition of Ludic or Recreational Consumption of Marijuana.” Amparo en Revisión 1163/2015. Available at: https://www.scjn.gob.mx/
Drug Enforcement Administration. (2024, May 21). “Schedules of Controlled Substances: Rescheduling of Marijuana.” Federal Register, 89 FR 44597. Available at: https://www.federalregister.gov/documents/2024/05/21/2024-11137/schedules-of-controlled-substances-rescheduling-of-marijuana
Secretaría de Salud. (2021, January 12). “Reglamento de la Ley General de Salud en Materia de Control Sanitario para la Producción, Investigación y Uso Medicinal de la Cannabis y sus Derivados.” Diario Oficial de la Federación.
PharmaCielo. (2019, August 19). “PharmaCielo’s Very First Commercial CBD Export from Colombia Lands in Europe.” Press Release; Uruguay XXI. (2024, March 18). “Uruguayan Cannabis Exports Diversified Products and Expanded Markets.”

This article is from an external, unpaid contributor. It does not represent IgniteIt’s reporting and has not been edited for content or accuracy.

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