In Canada, cultivation, processing and selling of industrial hemp defined as Cannabis sativa L. with less than 0.3% of THC in the inflorescences has been legal since 1998 under license from Health Canada (HC). Legalization of this multipurpose crop over two and a half decades ago placed Canada in the vanguard of the Western countries keen on developing a new crop sector.
In October 2018, the Cannabis Act was introduced in Canada. This legislation legalized the recreational use of marijuana and authorized utilization of whole industrial hemp plants including flowers, leaves and chaff, which enabled development of a non-narcotic cannabinoids segment of the hemp industry. The prospects of drawing revenue streams from all parts of the crop considerably boosted industry stakeholders’ confidence and projections for a steep increase in value of the Canadian hemp industry.
However, the Cannabis Act that was primarily tailored to relax marijuana regulations appeared not to address the needs and expectations of the industrial hemp industry players. In 2023, the government conducted the legislative review of the Cannabis Act to collect feedback on the regulations contained in the original document. The Canadian Hemp Trade Alliance extended 17 recommended amendments to the Act (and Industrial Hemp Regulations), proposed corrections to five inappropriate regulatory interpretation recommendations, and five Additional Regulatory Priorities that are fundamental to provide relief for its members from over regulation from the Cannabis Act and Industrial Hemp Regulations, and inappropriate regulatory interpretations by HC. The most notable proposed amendments and priorities include, increase the allowable THC level for hemp flowers and leaves from 0.3% to 1.0%, move regulatory management of the hemp industry from HC to Agriculture and Agri-Food Canada, transfer variety registration responsibility from HC to the Canadian Seed Growers Association, ensure that varieties allowed for commercial cultivation in Canada remain free from genetically modified material, and engage the Canadian Bankers Association to clearly delineate hemp and cannabis and remove banking and insurance restrictions for licensed hemp farmers and processors.
Despite the excessive regulatory roadblocks, the Canadian hemp industry is making strides to grow owed to the persistent efforts and unprecedented commitment of key industry leaders combined with enthusiasm of the newcomers to the hemp industry in this country. The presentation will provide several examples of recent advancements in making astonishing progress with respect to paving the road to further development in the upcoming times, conceivably enjoying hemp industry friendly regulatory framework.