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2022-10-03 08:53:13

The Good, the Bad, and the Ugly of Brexit on the Cannabis Industry

The news on Brexit is ever-changing, so we will look at what’s going on in the UK now that they are doing things on their own terms.

The CBD and cannabis market has always been slow in the European Union, even before the UK’s divorce.

As of right now, the UK has made it much more difficult to import and export cannabis products like CBD oil.

Covid-19 is making the supply-chain slow to a halt, making it even harder to move CBD and cannabis products through the UK.

CBD and cannabis suppliers worldwide (including Canada and the US) are taking notice of the complicated regulations.

The EU-UK Trade and Cooperation Agreement has forced many suppliers to rethink their business plans.

Let’s review the good, the bad, and the ugly of Brexit on the cannabis industry.

Brexit and CBD

Brexit’s impact on the CBD market is less than stellar -  for the moment.

Currently, children who rely on cannabinoid medication to treat seizures are caught up in the mess. Very few patients can access Bedrocan.

A good thing about Brexit is that the U.K’s Food Standards Agency (FSA) will now accept novel food applications for CBD.

The FSA also mentioned they do not consider CBD a narcotic. Also, the UK’s Home Office thinks CBD shouldn’t be considered a controlled substance.

While the FSA and HO are making movements towards the legalization of CBD and cannabis, the current Brexit trade deal has slowed the free movement of goods with EU members to a halt.

What used to promote CBD market growth is now hindering suppliers across the globe. Why? Because Britain bans the use of cannabis flower tops.

Navigating the muddy waters of CBD in the UK is not easy for suppliers in the EU, let alone for global suppliers and CBD consumers.

The Cannabis Seeds Situation

There is hope for the future of cannabis in the UK.

Still, the complex frameworks, multiple novel food authorizations, and intricate international customs protocols are grinding the cannabis industry to a halt for right now.

When it comes to importing cannabis seeds to the UK, suppliers in the UE, US, and Canada have their hands tied.

To legally ship cannabis seeds to the UK, the invoice with your personal information, the companies information, along with your entire order, is to be posted on the outside of your package for the world to see.

Talk about privacy infringement.

Supply-chain management is becoming more challenging to manage each day.

Yet, CBD is part of the UK’s post-pandemic goal to “build back better”.

The hypocrisy is getting real.

The Good: UK Regulations

Fun fact: The UK is the world’s largest medical cannabis producer and exporter. Ironic, right?

Another neat fact is that the UK has three different food authorities that allow CBD-infused products to be sold after approval.

When the US’s 2018 Farm Bill accepted CBD, the UK government changed cannabis’ schedule from schedule 1 to schedule 2. Meaning, cannabis products may be prescribed to medical cannabis patients.

According to the Food Standards Agency (FSA), CBD is legal and no longer a controlled substance.

The Bad: EU Regulations

No European governments have legalized cannabis for recreational use.

Like the US, the EU’s rules and regulations regarding CBD and cannabis vary from country to country

Even so, recreational cannabis use in Europe is a vast pending market. According to Dinafem, there are an estimated 25 million cannabis users worth 11 billion Euros.

The UK’s break from the EU is just another bridge to cross before we see legalization.

Now that Brexit’s trade agreement with the EU is at its end, supply-chain management has been severely impacted.

At least under the EU, the UK had free movement of CBD goods with other EU countries.

New tariffs, novel food regulations, customs, and shipping have become a lot more complicated.

CBD companies in the UK can’t import the ingredients they need, and in turn, they can’t export their products to European and US markets.

Who pays for these additional costs? Why the consumer, of course.

The Ugly: Imports and Exports

When it comes to CBD products, border authorities and shipping has always been inconsistent. Brexit’s only made it worse.

UK CBD companies and consumers can expect their shipment to be stuck in customs for quite a while.

The lack of clarity and definitive requirements makes it impossible to do business the right way.

The biggest headache? Customs declarations. If you're importing seeds, you now need a certificate of analysis (COA), also known as a phytosanitary certification.

If you are shipping anything into the UK, the new regulations state you must display the package’s contents (along with your address and phone number) on the outside of your package.

Brexit has added another layer to the sh*t cake that is the legal cannabis market in the UK.

However, that’s bound to change with some time. Has Brexit impacted you? We want to hear from you. Leave a comment below, or reach out on Facebook, Instagram or Twitter.

And remember: stay lifted!


About the author: Heather Burton

Heather lives with her husband and two children in beautiful British Columbia. Her passion has always been to enhance the lives of others by helping them reach their business goals.

Content management is her specialty, and writing is what she does best. Working specifically in the cannabis market, Heather strives to help dispensaries, patients, doctors, manufacturers and recreational users by giving them the voice they need. When she is not writing, you can find her anywhere outdoors and away from the screen.

Last Update 2022-10-03 08:53:13
Read 946 Times
Published In Legality / News