The share of European Union in global used clothing exports is estimated to continue growing in the next few years as collection rates continue to rise. 

Currently, EU accounts for over a third of global used clothing exports, as per a report by the United Nations Economic Commission for Europe (UNECE) and the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). Exports of used clothing from the region has tripled from 550,000 tons to 1.7 million tons over the past few decades, adds the report. .

However, despite this, the region is yet to adopt a design-led circular economy approach to clothing. Though it introduced key policies such as the EU Circular Economy Action Plan (CEAP) adopted in 2020, the EU Strategy for Sustainable and Circular Textiles in 2022, and the EU Ecodesign for Sustainable Products Regulation in 2023, these are yet to yield significant large-scale solutions to textile waste issues, shows the report. 

Tatiana Molcean, Executive Secretary, UNECE, says, to foster circularity, traceability and sustainability in the industry. exporters and importers need to introduce new policies.

Many countries in Latin America including Argentina, Brazil, Colombia, Mexico, and Peru, have already banned clothing imports to protect prevent clothing dumps. Conversely, Chile imposes no tariffs or quantity restrictions on imports, requiring only sanitization through fumigation. This policy has made Chile one of the top 10 importers of used clothes globally and the leading importer in Latin America. 

However, three-fourths of these imports are non-reusable, with 30,000 tons now polluting 30 hectare of the Atacama Desert, posing health risks to local communities.

While the trade in second-hand garments provides employment and income for national and migrant populations in Chile, the environmental and social issues must be addressed. The report recommends, EU and Chile need to jointly create robust regulatory frameworks to mitigate the impact of second-hand textile trade. 

Jose Manuel Salazar-Xirinachs, Executive Secretary, UNECLAC proposes, the two companies should pioneer innovative approaches to set new global standards for the trade of used textiles with a focus on sustainability and social responsibility.

Additionally, the report recommends, international trade agreements, such as the 2023 Interim Trade Agreement between the EU and Chile, should be amended. 

This agreement could serve as a model for other bilateral trade agreements between the EU and other countries to enhance cooperation and sustainability in the used textile trade, the report adds.