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EU's Dynamic Alignment Draft Mandates Pose Risks for UK CBD Businesses

Strategic Insights

— 2 min read

The European Commission's draft mandates on "dynamic alignment" for new SPS rules in the UK could have significant implications for the country's CBD businesses. The draft mandates, published on July 16, require the UK to adopt the full EU SPS rules, including those on food safety, animal/plant hygiene, and labeling standards, in exchange for access to the EU market. Experts warn that the potential drawbacks for CBD businesses could be substantial, particularly if the sector is not exempt from the dynamic alignment.

Key Takeaways:

  • The EU's dynamic alignment draft mandates could lead to the UK adopting full EU SPS rules, including those on CBD novel foods, which could result in significant implications for the sector.
  • Managing partner of food law consultancy Legal Foods, Mark Tallon, warned that the UK will become a "rule taker, not maker" under the draft mandates, and highlighted concerns about CBD novel foods, which are currently pending approval.
  • Eoin Keenan, co-founder and CEO of Goodrays, believes that an exception will be made for the CBD industry, and that CBD Novel Foods applications will have secured authorization before the draft mandates are formalized.
  • Luca Bucchini, chairman of the European Specialist Sports Nutrition Alliance (ESSNA), noted that the draft mandates could lead to smoother and faster flows with the EU, resulting in cost savings for businesses and consumers.
  • Trade associations are working with government bodies to address key issues and determine how dynamic alignment will work in practice, and are urging UK-based companies to engage through their associations to ensure their concerns are heard.
  • The UK's decision to leave the EU has been criticized by experts, who argue that it has led to a lack of benefits for the country's businesses, including those in the CBD sector.

Statistics:

  • 16 July: The European Commission published its draft mandates on `dynamic alignment' for new SPS rules in the UK.
  • Over 50% of the CBD industry's costs are due to increased paperwork and regulatory compliance.
  • May 2025: The UK's Novel Foods process saw a significant increase in applications, with companies awaiting the final formal licensing step.
  • 6-12 months: The next key period for determining which issues will be exempt from dynamic alignment and how it will work in practice.

Sources:

  • European Commission: `Draft mandates on dynamic alignment'
  • Mark Tallon, managing partner, Legal Foods: Interview with NI
  • Eoin Keenan, co-founder and CEO, Goodrays: Interview with NI
  • Luca Bucchini, chairman, European Specialist Sports Nutrition Alliance (ESSNA): Interview with NI

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