France's Council of State, the country's highest court, has overturned the government's ban on hemp flower, ruling that the prohibition was disproportionate and lacked solid evidence of harm. The decision, made on December 29, 2021, follows the legalization of hemp-derived products containing 0.3 percent THC or less in France on December 30, 2021.
The court stated that the harmfulness of other molecules present in cannabis flowers and leaves, particularly CBD, has not been established. In fact, evidence suggests that CBD has relaxing properties and anticonvulsant effects, without causing psychotropic effects or dependence.
Concerns Over Distinguishing Hemp from Cannabis
Despite allowing hemp flower with the latest court ruling, concerns were raised regarding how the government plans to separate hemp from THC-rich cannabis, which are nearly indistinguishable to the naked eye. The Council of State considered that the THC level could be controlled by means of rapid tests.
The court's decision aligns with previous rulings by the European Court of Justice in November 2020 and the Court of Cassation in June 2021, which found the ban on CBD in France illegal based on the principle of free movement of goods within the European Union.
Potential for Significant Economic Growth
The ruling has significant implications for the French hemp industry, which experts say could bring €1.5 to €2.5 billion in annual turnover and create 18,000-20,000 jobs. France is currently home to around 2,000 CBD shops, with an annual turnover estimated at around €500 million, more than half of which comes from flower alone.
The French gray market for CBD was about €200 million in 2021 and is expected to reach roughly €300 million this year, according to UIVEC, a French extracts trade group. UIVEC also estimated that about 300-500 hectares of hemp were grown for CBD-producing flower in 2022.
As the legislation moves forward, the government is expected to declare hemp compatible with the EU's Common Agriculture Policy, develop a strategy for the industry, and set specific regulations. The new rules are expected to roll out in early 2023, paving the way for an economically sustainable hemp industry in France.
