President Morales, a former coca farmer, is a renowned supporter of the legalisation of the coca leaf chewing and heads a federation of coca farmers.
At the signing held Wednesday, he said the law would regulate the revaluation, production, circulation, transportation, marketing, consumption, research, industrialization and promotion of coca in its natural state.
“It was time to bury Law 1008, which sought to eliminate coca in Bolivia,” President Morales said, referring to a U.S.-led 1988 law which sought to limit production and impose harsh penalties for illegal coca cultivation.
“That is why this is a historic day.
“This law guarantees coca for life, this is our struggle.”
Bolivia is currently the world’s third largest producer of coca, behind Colombia and Peru.
While the expansion is expected to increase production, it is likely to further increase competition between farmers in Bolivia’s already saturated market.
