The European Commission is probing the Italian government’s recent moves to clamp down on the trade of CBD and hemp flowers. This action follows multiple complaints from stakeholders who believe such measures may breach EU regulations. The Italian government’s decision, driven by its far-right leadership, has raised significant concerns, especially since Italy plays a crucial role in the European industrial hemp and CBD markets.
Italy’s move to ban CBD and hemp flowers
Prime Minister Giorgia Meloni’s administration has devised a two-pronged strategy to eradicate the legal market for hemp flowers within the EU. Despite being non-psychoactive, industrial hemp flowers are used for CBD production and marketed in Italy under the term “cannabis light,” appealing to those seeking cannabinoid benefits without psychoactive effects. If this amendment passes, it could dismantle Italy’s CBD and hemp flower market by cutting off their primary sources.
In addition to the legislative measure, a decree implemented on August 5, 2024, has already attempted to classify CBD as a narcotic substance, effectively banning any products containing CBD meant for internal consumption. This regulatory effort underscores the Italian government’s stringent stance against CBD.
Legal and economic implications
One of the main arguments opposing Italy’s efforts is that they conflict with European Union laws on the free movement of goods and fair competition. Canapa Sativa Italia, representing the hemp industry, filed an official complaint with the European Commission, asserting that Italy’s actions violate the EU’s Common Agricultural Policy and threaten fair competition within the European market.
Adding to the complexity, the European Court of Justice (ECJ) ruled that hemp extracts, including leaves and flowers, should not be classified as narcotics. This ruling emphasizes that these extracts, including CBD, are legal and marketable within the EU. As a result, many EU member states, including France and Italy, have had to revise their national legislation to align with this decision.
Potential consequences for various industries
The current prohibition proposal in Italy, if enacted, could have significant consequences for several industries reliant on CBD products. However, in 2021, the inclusion of CBD in Cosing, the European database for cosmetic formulations, was approved, indicating that the ingredient is safe and legal for use in cosmetics. This approval contrasts sharply with the proposed bans, adding another layer of controversy.
European Commission’s response
The European Commission’s investigation is closely monitored by hemp and CBD industry stakeholders. Valentina Palmisano, an Italian Member of the European Parliament, expressed satisfaction with the Commission’s commitment to this issue. She pointed out that the amendment contradicts the ECJ’s 2021 ruling and opposes EU regulations that support the legal trade and production of hemp flowers and CBD products.
The Commission’s inquiry will consider complaints from numerous Italian actors claiming that the government’s actions could harm the EU hemp industry as a whole. Should the investigation conclude that Italy’s proposed ban conflicts with European legislation, it might prevent the implementation of these restrictive measures, protecting both Italian and European CBD markets from further disruptions.
While Italy’s government pursues stringent measures against CBD and hemp flowers, the European Commission’s investigation offers industry advocates a glimmer of hope. Whether or not Italy’s proposals stand, the decision will undoubtedly have a lasting impact on the future landscape of the European CBD market.