Everything you need to know about doing business in a transformed European Union

The European Union remains the biggest regional market for many textile manufacturers around the world, but it is a market on the cusp of major change.

This is because of the upcoming EU Textile Strategy being developed by the European Commission (EC), which forms part of the broader Green Deal programme of environmental measures aimed at making the 27 countries within the union completely carbon neutral by 2050.

“In five years from now, textile trading in the EU will be completely transformed as the bloc moves from being an open market to a much more demanding one,” observes Dirk Vantyghem, director of the Brussels-based textile and clothing industry body Euratex. “The EU’s Textile Strategy will introduce sixteen separate pieces of legislation that companies have to comply with, and this new framework of rules and regulations will see the market move from being based solely on free trade, to free-but-fair trade.”

Webinar series

Navigating the new challenges and opportunities of this ambitious programme is the focus of a new four-part series of webinars, EU Textile Strategy 2030 and its Business Impact, that has been developed in cooperation with the European Commission for ITMAconnect users.

An introduction to the series featuring three European specialists – Marie-Helene Pradines, the EC’s head of tourism and textiles, Karolina D’Cunha, its deputy head of waste to resources, and Alessandra Moser, policy advisor to member of European Parliament – was launched live on 16 May. All five modules are now available to view on-demand at goto.itmaconnect.com/agenda/ondemand/.

Among key points emphasised is that with the Green Deal, the EU is aiming to lead by example and establish a new growth strategy for European textile manufacturers that is based on a digitalised economy and new rules and standards.

“The EU Textiles Strategy is paving the way for a new type of industry,” says Marie-Helene Pradines. “It is based on the guiding principles of eco-design and an end-of-life producer-financed system, with digital enforcement at the borders of EU member states, completely transparent information to consumers that is free of greenwashing, and the removal of impact from today’s global textile manufacturing supply chain.”

Social dimension

In addition to addressing environmental issues, there is also a social dimension, and already, in April 2024, the European Parliament has approved new legislation prohibiting the sale and import and export of goods made using forced labour. Should a product be found to have been manufactured using forced labour, it will be prohibited from entering the EU market and shipments will be halted at the borders of member states.

“A key goal is to put an end to the exploitation of workers, particularly of women,” says Alessandra Moser. “It is essential to promote fair wages and safe working conditions worldwide.”

EPR for waste

Another fast-approaching major change is that from January 2025, all post-consumer textile waste generated in EU member states will have to be separately collected and sorted and this will be paid for by fees levied on manufacturers via nationally-set Extended Producer Responsibility (EPR) schemes.

According to Karolina D’Cunha, the EPR schemes will be based on ‘eco-modulation’, in which the fees are reduced for manufacturers who are able to demonstrate either the durability of their products, provide environmental certifications or incorporate recycled materials into their collections. Such a national scheme is already in operation in France and is likely to provide key guidance to other EU countries in implementing their own.

Moser added that one of the main concerns of manufacturers to the proposed EPR schemes within the EU is guaranteeing a level playing field with outside competition. “Very strong measures will have to be taken to ensure that what goes onto the EU market is in compliance,” she said.

Digital product passport

By 2030, every textile product for sale in the EU will need a digital product passport (DPP) which will most likely take the form of a scannable QR code or some other tag.

The DPP, once accessed, will include information about a product’s origins, material composition, supply chain, sustainability, recyclability and possibly much more, gathered from a range of sources.

Full programme

Four further webinars in the EU Textile Strategy 2030 and Its Business Impact series are now available to view at ITMAconnect.

These separately address in depth the issues of:

Recordings of the masterclass are available on ITMAconnect on-demand for subscribers. If you are not a subscriber, register for an ITMAconnect visitor account now for just €25 (plus applicable VAT). To find out more about the masterclass, click here.

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