A Canadian firm that manufactures and distributes hempen goods to the United States announced plans this week to sue the U.S. government for more than C$20 million ($12.7 million) in damages because of a recently enacted DEA ban on certain hemp food and oil products.
“We are filing this NAFTA action because the DEA, … through its recent ruling, seeks to effectively prevent Kenex from accessing American markets for its hemp food products, on which the firm depends for over three-quarters of its business,” Kenex president Jean Laprise said in a statement. Kenex Limited is Canada’s oldest hemp manufacturing and processing firm, producing an array of hemp seed, food and fiber products. Canada legalized the commercial cultivation of hemp in 1998.
Last October, DEA officials announced new regulations criminalizing the possession and manufacture of any edible hemp seed or oil products – including snack bars, veggie burgers and salad oils – that test positive for trace levels of THC out of concern that such products might inadvertently cause a consumer to test positive on illicit drug tests. By contrast, Canada allows the sale and possession of edible hemp goods as long as they contain amounts of THC below ten micrograms per gram.
Kenex maintains that the DEA’s ban conflicts with the North American Free Trade Agreement (NAFTA) – which recognizes hemp as a legal agricultural commodity – because: “The DEA did not provide any notice and opportunity for U.S. trading partners or foreign companies to provide input into its ruling; the agency did not conduct a risk assessment or offer any other science-based rational for issuance of the rule; the DEA did not seek to minimize impact on international trade; and it has not similarly regulated poppy seeds and their trace opiates.”
A statement by the Canadian government (provided by Kenex) backs the company’s claims, declaring: “There is no evidence that the effective ban on relevant Canadian food products on the U.S. market is based on any risk assessment. Therefore, Canada objects to these measures.”
Last week, the Hemp Industries Association (HIA) and seven hemp food companies filed a brief with the Ninth Circuit Court of Appeals urging the court to enjoin the DEA ban.
For more information, please contact Allen St. Pierre, NORML Foundation Executive Director, at (202) 483-8751 or visit: http://www.votehemp.com.