Now a Canadian Hemp Embargo??
by Arthur Hanks

An alarming development has occurred at the US-Canada border. Only this time it's OUR government who is erecting a trade barrier.

In the last few months, at least three American manufacturers using hemp in their finished products have had product seized at the Canadian border by Canadian Customs. Product has been shipped back at the manufacturer's expense. Some of this product has contained Canadian hemp.

Since legalisation in 1998, Canada's hemp industry has developed (I believe) the highest value and quality hemp grain and by-products in the world. It is recognised that our tough regulatory standards have contributed to these standards. However, now our regulatory standards are getting in the way of doing business.

As it stands, The Industrial Hemp Office requires testing and analysis to certify that all hemp oil and seed sold in Canada or to America tests below 10 parts per million (ppm) of THC. For their part, Dept of Foreign Affairs and International Trade has advised Canadian exporters to claim that their legal hemp oil contains 0 THC in their shipping documents.

However, Health Canada has now recently informed American companies that no American products will be allowed to be sold into Canada, unless they test each "finished batch" of the end product for THC concentration. This test must be performed in America, by a DEA licensed laboratory, using the official analysis protocol that is laid out in the CANADIAN Technical Manual of the Regulations.

Now American manufacturers have protested to the Hemp Office that since they could provide documentation showing that they were using legal Canadian hemp raw materials in their products in diluted amount, they complied with Canadian regulations just as Canadian manufacturers do.

Health Canada hasn't accepted this. They want batch testing.

American hemp manufacturers have also pointed out that the HC's official protocol has only been set for oil, and not for finished products, like shampoos, soaps and lipbalms. Each may require its own protocols. As well, it is also unclear to American manufacturers if the official protocol, as outlined by Health Canada, complies with accepted Good Manufacturing and Business Practices. To conform to these practises, the protocol must be changed.

According to HC, changes to the protocol will be considered under a review process. This review process could take a year or longer.

Batch testing is an additional cost of doing business, potentially onerous. Undoubtedly, the cost will trickle back to Canadian suppliers if American contracts are to be kept. We also risk losing business to European and Asian sources of hemp grain, for if Canada is so difficult to do business with, why do business with us at all? American companies may consider a boycott of Canadian hemp grain and derivatives, slowing (or squashing) the development of this industry further. New customers, who have not yet committed to using hemp, will stay out of the marketplace given the continuing uncertain regulatory environment.

Or maybe the Americans could sue us, for selling "falsely labelled" 0 THC product as we were advised to do by DFAIT. What a mess. Or reinstitute their own hemp embargo.

Does the Hemp Office really think that processing hemp in a foreign company may boost THC content? Hemp of course, is only one ingredient in the finished product, so content should be less, much less.

So, the paradox we are facing is that hemp -- documented as compliant in Canada-- when used as an ingredient in a finished product manufactured in a foreign county, becomes non-compliant. Jace Callaway of Finland once commented to me that HC's stance on hemp was like the Queen of Hearts in Alice in Wonderland, always calling for "New Rules! New Rules!" in her surreal croquet game.

OK, some good news. At the recent Canada's Outdoor Farm Show, Senator Lorna Milne came forward and indicated that she will use her office to help resolve this in our favour.

Milne of course helped move regulations forward in 1997, when she called the Hemp Team in to a Senate finance committee meeting to explain their lack of progress on regulations. The Hemp Team sweated under the spotlight, and we had the Regs in 98 (you can read about it in Hansard or in Commercial Hemp #2 if you have a copy of it).

Health Canada is just fulfilling its mandate to protect the public However, since hemp products do not cause harm, and there is an increasing body of evidence accumulating suggesting that these products do have considerable benefit, Health Canada is clearly overstepping their mandate.

I believe that we can win this argument if we argue on an economic basis. Points of principle will only take us so far, and won't cut through wonky regulations. If we talk about lost or threatened business opportunities, I think our arguments will carry more weight.

What to do: I suggest that Canadian manufacturers and exporters contact at least three parties:

1.. Neils Hansen-Trip at the Hemp Office; ask him about HC's new double standard on finished hemp products. Tell him you are very concerned.
Email: Niels_Hansen-Trip@hc-sc.gc.ca
Tel: (613)954-6524

2.. Senator Lorna Milne. Show her/tell her how HC's new rulings are bad for business and bad for Canadian farmers and the development of this industry.
Email: milnel@sen.parl.gc.ca
Tel: 1-800-267-7362.

If you have a other government contacts, please use them.

3.. Your provincial hemp association (in Ontario www.OntarioHempAlliance.org) or international or national umbrella association if you are a member (the HIA or NAIHC or Canadian Health Food Association) and ask them what they are doing about this issue. The HIA, whose membership consists of some 300 companies internationally, is up on this issue, but would likely appreciate your input. Also, let me know if I can be of any help to your efforts. Feedback is most appreciated.