EU textile associations call for clarity and faster reforms

With the industry facing significant global market turbulence, Brussels-based EURATEX and Danish Fashion & Textile (DM&T) are jointly urging the EU to restore regulatory clarity to protect the bloc’s 1.3 million jobs and 200,000 textile businesses.

“In these uncertain times, we need the EU as a stabilising factor,” said Thomas Klausen, CEO of DM&T.

“Predictability is essential for investments,” added Dirk Vantyghem, director general of EURATEX. “We have no time to lose if we want to safeguard the competitiveness of our industry.”

Circular Economy Act

The industry is pushing for swift progress on the upcoming Circular Economy Act, which aims to harmonise waste rules and create an EU-wide market for secondary raw materials like textile waste. Standardised end-of-waste criteria would replace today’s fragmented national regulations, reducing costs and barriers to cross-border recycling.

Union Customs Code Reform

The industry is also calling for the closure of the customs duty de minimis loophole, which allows parcels under €150 to enter the EU duty-free—a rule that benefits ultra-fast fashion platforms such as Shein and Temu while putting EU producers at a disadvantage. With 4.6 billion low-value parcels arriving in 2024 (91 per cent from China), European textile associations want a higher handling fee and faster elimination of the €150 threshold to ensure fair competition.

Waste Framework Directive

The industry urges rapid ratification and implementation of the revised Waste Framework Directive, which will harmonise Extended Producer Responsibility (EPR) schemes for textiles across the EU. Current fragmentation discourages recycling investments, and with textile waste projected to rise by 25 per cent to 8.5-9 million tons by 2030, delays could exacerbate the problem.

Green Claims Directive

The EU’s anti-greenwashing legislation has stalled due to disagreements over its scope, particularly regarding micro-enterprises. This uncertainty discourages companies from promoting legitimate sustainability efforts, a phenomenon known as ‘green hushing’. Industry groups are urging the Danish Presidency to broker a compromise, ensuring clear rules to rebuild consumer trust.

Mercosur Free Trade Agreement

Finalising the EU-Mercosur deal would grant European textile producers duty-free access to markets that currently impose tariffs as high as 35 per cent. The agreement could save EU exporters €4 billion annually, providing a crucial advantage over Asian competitors who still face these trade barriers.

India Trade Negotiations

While trade talks with India present opportunities, the industry stresses the need for balanced terms to prevent an influx of cheaper imports without securing fair access for high-value EU technical textiles.

Energy Union Acceleration

High energy costs remain a critical challenge, with EU industrial electricity prices 2.5 times higher than those in the US. Industry groups advocate for extending the AggregateEU energy procurement model to electricity and hydrogen, enabling long-term, cost-effective supply contracts. Without action, Europe risks losing energy-intensive manufacturing capacity permanently.

REACH Revision

The proposed overhaul of REACH raises concerns that overly restrictive rules could push dyeing and high-performance coating processes outside the EU. The industry urges a pragmatic, science-based approach to avoid relocating key production stages—and the skilled jobs they support—beyond Europe’s borders.

The Stakes for Europe

Denmark’s textile sector alone contributes €11.7 billion to national GDP and supports 96,000 jobs, underscoring the industry’s economic significance. However, regulatory delays—from the stalled Green Claims Directive to sluggish REACH negotiations—are already dampening investment and consumer confidence.

Under the banner ‘A Strong Europe in a Changing World’, Denmark’s presidency must balance security and sustainability goals with industrial realities. As Vantyghem notes: “Although the EU cannot solve all challenges alone, we expect the Danish Presidency to show leadership.”

The coming months will determine whether Europe’s textile industry moves towards competitive sustainability or continues to relocate beyond the bloc.

ALCHEMPro News Desk (IL)