HS Code:
True hemp (Cannabis sativa L.), raw or processed but not spun, includes tow and waste of true hemp, such as yarn waste and garnetted stock. This product category falls under HS Code 5302. True hemp is primarily used for industrial purposes, including the production of textiles, ropes, paper, and biocomposites. Unlike marijuana, true hemp has low THC content and is cultivated for non-recreational use. Global trade in this category is influenced by regulatory frameworks, environmental policies, and increasing demand for sustainable materials.
Total Trade Volume
Approximately $150 million USD
Data from 2022
Source
United Nations Comtrade Database and International Trade Centre (ITC)
$45 million USD
30% of total trade of total trade
Increasing
$30 million USD
20% of total trade of total trade
Stable
$20 million USD
13% of total trade of total trade
Increasing
$15 million USD
10% of total trade of total trade
Stable
$10 million USD
7% of total trade of total trade
Increasing
Average Rate
3.5% ad valorem
Highest Rate
10% (applied by certain developing countries with protective agricultural policies)
Lowest Rate
0% (under free trade agreements like EU internal trade or specific WTO commitments)
Rising demand for sustainable materials
Increased interest in hemp as an eco-friendly alternative to synthetic fibers and traditional crops like cotton, driving trade growth in Europe and North America.
2021-2023
Regulatory liberalization in key markets
Easing of hemp cultivation laws in countries like the United States (post-2018 Farm Bill) and Canada has boosted production and export potential.
2018-2022
Technological advancements in processing
Innovations in decortication and fiber extraction have reduced costs, making hemp more competitive and increasing trade volumes.
2020-2023
The European Union's Green Deal has prioritized sustainable agriculture, providing subsidies for hemp cultivation as a low-impact crop, boosting production in member states like France and Italy.
January 2023
Expected to increase EU exports by 15-20% over the next five years.
Following the 2018 Farm Bill, the USDA has streamlined hemp cultivation regulations, leading to a surge in domestic production and reduced reliance on imports.
October 2022
Likely to shift global trade patterns as the US becomes a net exporter in the coming years.
China has invested in large-scale hemp processing facilities to cater to growing international demand for industrial hemp products, maintaining its position as a key exporter.
March 2023
Strengthens China's market share, potentially pressuring smaller exporters.