Compensation and Equity

Italy’s Lower House Passes Controversial Ban on Low-THC Hemp Products




Article on Italian Hemp Ban

Italian Lower House Votes on Controversial Hemp Ban

On September 14, 2024, the Italian lower house made a significant decision to ban the sale and distribution of low-THC hemp flowers and products, often referred to as ‘cannabis light.’ The vote passed with a narrow margin of 157 to 109, sparking considerable debate and controversy within the country. This new legislation has far-reaching implications not only for the Italian market but also for the broader European Union.

Scope and Impact of the Ban

The ban encompasses a wide range of activities related to hemp products. It restricts the import, transfer, processing, and distribution of hemp inflorescences in various forms, including semi-processed, dried, or shredded products. Additionally, it includes products derived from these inflorescences, such as extracts, resins, and oils. This comprehensive ban represents a significant blow to the industry, which employs approximately 15,000 workers and has an estimated value of around €500 million.

Many industry stakeholders argue that this measure violates European Union laws concerning the free movement of goods and the non-narcotic status of CBD, as established by the 2020 EU Court ruling. This perceived infringement on EU law has fueled further discontent and led to calls for interventions from higher authorities to address these legal inconsistencies.

Government’s Stance and Industry Response

The ban aligns with the Meloni government’s ongoing efforts to crack down on the ‘cannabis light’ industry. However, it has faced opposition from within the coalition itself, especially from Forza Italia, which advocates for a more pragmatic approach to regulating the sector. Despite these internal disagreements, the government has moved forward with the legislation, prompting significant backlash from various stakeholders.

The Italian courts have previously suspended similar decrees due to a lack of scientific evidence supporting the classification of CBD as a narcotic. These legal precedents, combined with recent challenges, continue to question the validity and rationale behind the ban. Protests and press conferences organized by the hemp industry underscore the economic and social damage that this legislation could cause.

Economic and Global Consequences

Beyond the immediate job losses and business closures, the ban poses broader economic consequences. It threatens the existence of around 3,000 businesses involved in the hemp sector and restricts the production of diverse hemp-derived products such as cosmetics, herbal medicine, and food supplements. The full economic impact is yet to be seen, but the signs are undoubtedly worrying for those invested in the market.

On an international scale, the ban could disrupt the rapidly growing global cannabidiol (CBD) market, where Italy plays a significant role, particularly within Europe. The burgeoning CBD industry, projected to expand significantly in the coming years, could face setbacks due to reduced contributions from one of its largest European players.

This controversial legislation serves as a critical juncture for the Italian hemp industry and its future. Stakeholders and observers alike will be watching closely to see how legal challenges, regulatory adjustments, and market responses unfold in the wake of this significant development.