Did you know that Malta was the first country in Europe to legalize cannabis? About two years ago, Malta became a pioneer in the legalization of recreational cannabis within its borders. In France, the situation is moving toward serious discussions with authorities and decision-makers regarding cannabis and CBD. Until now, possession of cannabis for personal use has been punishable by imprisonment. Not far from France, in the United Kingdom, a Court of Appeal ruling has shaken up the CBD flower market in the country. Will this court decision allow companies to freely market their cannabis flowers to British consumers? Could this legal uncertainty encourage the free trade of these products on the market? The question remains unanswered.
A Look Back at the Events
For some time now, the mayor of London had already begun this shift in stance regarding the cannabis situation in the United Kingdom. The public now views cannabis differently. It represents an emerging economic opportunity. The medical applications of cannabis are indeed promising. The state’s finances are in dire straits. Absolutely everything pointed to the state riding the wave of cannabis’s success to boost the economy.
The mayor of the capital is taking the first steps toward legalizing cannabis. His first strategic move was to commission a study aimed at lifting criminal penalties against cannabis production and processing companies. The goal here is to attract major players in the sector to the region in order to foster the growth of this industry. The mayor stated in public remarks that he intends to establish a special commission to oversee standards and regulations concerning narcotics. In particular, he plans to closely monitor new laws regarding cannabis during his next term in office.
In interviews with local television stations, he reaffirmed his political stance and accused law enforcement of wasting resources on cannabis rather than on other, more devastating drugs. Following his remarks and public statements, the British government was quick to reprimand him for his controversial actions. In particular, he is accused of overstepping his authority as mayor. According to them, the decriminalization of cannabis is a matter of state that is beyond his purview. Despite these attacks, the mayor refuses to admit defeat and points out that his primary strategy was to bring the issue of cannabis to national attention. That goal has been achieved, as the entire country has heard about this incident and the debates are trending online.
According to one source, more than two-thirds of Londoners are in favor of decriminalizing cannabis in the city. They are reportedly open to the idea of strict regulation of the sale of the plant and its derivatives for medical and recreational purposes. The most significant indicator to note is the increase in the market capitalization of the cannabis industry across the entire archipelago. The market capitalization of cannabis companies has risen by nearly 250%. Attracted by this opportunity, major agribusiness lobbies also want a piece of the pie.
An unprecedented opportunity for the government's public funds
A well-known independent consulting firm in the United Kingdom has estimated that the country’s cannabis industry is expected to be worth approximately 1,900 billion pounds over the next two years. It’s a real gold rush for industry insiders. Like other nations before it, the United Kingdom is expected to benefit from the colossal economic windfall from cannabis once the plant is officially legalized. Some U.S. states that have decriminalized the over-the-counter sale of cannabis have collected massive tax revenues after just seven fiscal years. According to the experts’ report, cannabis sales have fallen by more than 50% in one year.
The current U.S. president is now considering fully decriminalizing cannabis nationwide. As a result, all previous criminal convictions have been overturned. After an extremely devastating pandemic, the United Kingdom is now focused on recovering from its losses and implementing rigorous development strategies. Furthermore, from an economic standpoint, decriminalizing cannabis would allow the government to save considerable funds in terms of police, judicial, and penal resources.
Current Situation
The Court of Appeals has publicly ruled on the cannabis case and reached a conclusion that is as dramatic as it is historic. According to the Court of Appeals, as long as the THC concentration in hemp flowers remains strictly below 0.2%, they will in no way be considered a drug. This is an unexpected and unhoped-for turnaround for all supporters of the cannabis industry. Nevertheless, it is not yet time to celebrate. In fact, experts state that even though CBD-rich hemp flowers are not considered a drug with psychotropic effects, their sale is not necessarily permitted.
On the other hand, this legal uncertainty will surely encourage many businesses to open shops without fear of legal repercussions. A few years ago, before this issue gained such prominence, a news story made a strong impression. A CBD flower dealer was arrested by law enforcement. The defendant attempted to smuggle an entire shipment of CBD flowers into the country. Under normal circumstances, the owner would have faced a prison sentence and a hefty fine. Against all expectations, he was represented and acquitted by a renowned and dedicated attorney.
To exonerate the CBD flower retailer, she raised an important point regarding European regulations on the sale of Sativa containing 0.2 percent CBD. According to her attorney, this European directive predated the British restrictions on cannabis. Since her argument was entirely reasonable and consistent, the retailer was found not guilty. This case and the woman’s testimony had a massive impact on the decision of the Court of Appeal, the highest court in the United Kingdom. As a result, other businesses involved in similar cases can now use this precedent to defend themselves against any lawsuits lacking a solid foundation.
The implications of this decision
Upon closer examination of this unprecedented case, several points must be highlighted. First, it is important to note that the United Kingdom has permanently withdrawn from the Eurozone—that is, from the European Union—since the end of the historic year of 2020. The CBD flower retailer was therefore fortunate to benefit from the protection afforded by the European Union’s legislation on the commercialization of cannabis.
Unfortunately, this means that from now on, any company involved in a legal dispute after that date will not receive the same outcome as the previous retailer. If the case goes to court, this same line of argument cannot be repeated because its very foundations no longer hold legal weight. Experts firmly assert that since the United Kingdom is no longer a member of the European Union, it is now a sovereign nation. In other words, Europe no longer has control over policies regarding the marketing and trade of goods. Thus, intuitively, companies that were subject to legal proceedings identical to those described in this case (prior to Brexit) have the right to assert their claims before the British courts.
Conclusion
After reviewing the facts, it is true that this case ultimately failed to advance the cause of companies selling cannabis, which were found guilty after Brexit. Nevertheless, all is not lost, and this case has helped shift the tide in favor of cannabis decriminalization. The impact of this decision should not be overlooked. The British court publicly and unequivocally stated that cannabis with a THC concentration of less than 0.2% cannot be considered a narcotic.
In short, following this line of reasoning, if other cases similar to that of the retailer arise in the future, the courts will have to take several key factors into account. They will have to prove that there is tangible and sufficient evidence to charge the defendant. Next, they will have to confirm that the health and safety of the public was endangered. Finally, and most importantly, CBD flowers with a THC concentration below 0.2% are agricultural products just like any others. Thus, the courts will have to justify why a business should be charged based on substances that are publicly recognized as harmless.
In fact, while the United Kingdom is gradually moving toward legalizing CBD flowers, it’s important to note thatin France, the sale of this cannabidiol product is permitted provided it contains no more than 0.3% THC.
