Canadians Not High on U.S. Hemp Ban, Sue
Aug. 2 -- The drug war is boiling over into a trade dispute along America's northern border.
A small Canadian company is using the 1994 NAFTA treaty to sue the U.S. government, claiming restrictions on hemp-containing foods have devastated their business.
"Under international law they actually have the obligation to compensate the people whose business they're taking," said Todd Weiler, the lawyer representing Kenex, the company bringing the suit.
In 1999, U.S. Customs agents impounded a shipment of Kenex hemp birdseed and issued recalls on other shipments by the company.
Kenex expected to file papers today under Chapter 11 of the NAFTA treaty, claiming the United States had illegally undermined its ability to do business in the country.
The company is seeking at least $20 million in compensation. The next step in the dispute is the appointment of outside arbitrators to decide the case.
U.S. State Department officials said they could not comment on the matter until they had seen the allegations filed by Kenex.
Seeking a ‘Zero Tolerance’ Policy on THC
The dispute stems from the Drug Enforcement Agency's decision to consider foods containing even trace amounts of THC, the psychoactive chemical in marijuana, controlled substances. The DEA announced its policy in February 2001, saying it was simply clarifying its longstanding position on THC and marijuana.
Proponents of hemp — which is made from the stalks of low-THC, high-fiber breeds of the marijuana plant — tout it as an extraordinarily versatile and environmentally friendly product that has little to do with marijuana smoking.
Health food producers sell hemp products including granola, ice cream, burgers, cheese, chips and chocolate bars. Hemp fiber is also used to make clothing, backpacks, and paper goods, and advocates praise the plant's oil for its nutritious qualities.
Kenex and other hemp companies say — and the Justice Department agrees — the products contain far too little THC to produce any psychoactive effects.
