Brussels has delayed addressing Italy’s restrictive measures on industrial hemp and CBD, with stakeholders warning that the holdup is stifling the country’s growing hemp industry, following a March 17 debate in the European Parliament.
The discussion involved members of the Petitions Committee, the European Commission’s Directorate-General for Agriculture, and Mattia Cusani, President of Italian trade group Canapa Sativa Italiana.
The conflict centers on two key Italian measures that have raised alarms among hemp advocates: a proposed amendment to the country’s Security Law and a decree that classifies oral CBD products as narcotics. The amendment, still under consideration in Italy’s Senate, would ban the production and trade of hemp flowers and derivatives, even those with THC content below the EU’s permitted 0.3% threshold.
CBD ≠ drugs
The decree, enacted last August, equates CBD with narcotic substances and restricts its sale to pharmacies with non-repeatable prescriptions. However, the decree was temporarily suspended by the Lazio Regional Administrative Court in September.
In the Parliament yesterday, Cusani argued that the measures violate the EU’s free movement of goods and fair competition laws.
“The courageous hemp traders, who abide by the rules every day and ensure a transparent and safe market, should not fear the state but receive its support,” he told lawmakers.
National and European hemp associations petitioned Brussels last autumn, urging the European Commission to intervene and emphasizing that the restrictions hinder the development of a thriving hemp sector in Italy.
Timely debate
The debate is especially timely, as the European Parliament’s Petitions Committee has shown strong support for the petition, with key MEPs pushing for action.
While the committee decided to send a formal letter of complaint to the Italian government, a step that further pressures Rome to reconsider the proposed regulations, the lack of immediate action from the European Commission leaves the situation unresolved, and Italian businesses in limbo. The letter of complaint gives Rome 90 days to respond.
The stakes are high: Italian hemp industry groups estimate that the restrictive measures could force up to 3,000 businesses to close, jeopardizing 15,000 jobs. These businesses, which include CBD retailers as well as producers of hemp-based cosmetics, food supplements, and herbal medicine, have invested heavily in hemp production under the assumption that Italy would adhere to EU regulations.
“We are not talking about drugs or drug dealers but about a serious supply chain that follows rigorous scientific standards,” said Flavio Tosi, a Forza Italia MEP, who has also voiced concerns about the economic impact of the restrictive measures. He said last month that the proposed amendment to Italy’s Security Law would hurt thousands of farmers and businesses, many led by young entrepreneurs who have invested heavily in the hemp industry.
Vague on CBD
The European Commission’s representative, Oliver Sitar, acknowledged the importance of hemp fiber applications but remained vague on the Commission’s stance regarding the use of CBD, emphasizing that public health concerns – managed by individual member states – could potentially allow for exceptions to EU single market rules. “The assessment is still ongoing,” Sitar remarked, indicating that no formal action can be taken until the Commission completes its evaluation.
The cautious approach is frustrating stakeholders, who argue that the Commission is failing to protect the legal hemp industry from disruptive national policies that contradict EU law. European Court of Justice rulings have affirmed that member states cannot impose national restrictions on the cultivation of industrial hemp unless there is clear scientific evidence supporting health concerns. These legal precedents further strengthen the argument that Italy’s proposed measures violate EU law.
‘Unjust, unreasonable’
While the Commission hesitates, stakeholders are growing impatient. “Italy’s regulations are unjust and unreasonable,” Palmisano said during the Parliament debate. “They ignore European jurisprudence and the enormous potential of this sector in terms of jobs, sustainability, and innovation.”
Forza Italia, traditionally a conservative party, has shown some support for the industrial hemp sector, but Tosi warned that the proposed ban would ultimately push consumers to unregulated markets, undermining public safety and opening doors for illegal trade.