The articulating role of international trade in the circular economy in fashion: challenges and opportunities

Circularity in the used clothing trade would generate important benefits by extending the useful life of those garments that are in good condition, allowing people to purchase clothing at an affordable price, generating local employment, and reducing CO2 emissions and waste generation by substituting the production of a new garment. However, in some cases, exports of second-hand garments generate negative impacts on the destination markets. This occurs when the exported products are of poor quality, i.e. they are not able to meet the needs for warmth, or do not meet the climatic conditions of the destination country. Unwanted second-hand clothing then ends up in landfills or burns along with other waste, generating pollution.

The costs associated with the classification, order, transportation and hospitalization of the garments determine the profitability of the used clothing business. The most complex and labor-intensive process is the classification of garments according to their status (usable or non-usable), quality (brand, design, materiality, etc.) and type (pants, jacket, etc.). This is how the garments with the highest cost and quality are those classified at origin at a higher level compared to those that are not classified or classified at a low level. The international trade in second-hand clothing is subject to an average import tariff of 19.2% (OEC, 2018), discouraging the repair or treatment of imported clothing in the destination country, and regulated by regulations that prohibit its Entry into some countries for health reasons or protection of local industry or the environment.

In this scenario, it is urgent to analyze and discuss the facilitating role of international trade in the circularity of clothing worldwide and the creation of new incentives to reduce environmental impacts, particularly in the Atacama Desert in Chile.

Objectives: Debate with the main stakeholders, companies, government and social organizations:
a) the role of international trade in the circularity of clothing at the global level
b) the creation of new incentives to reduce environmental impacts, particularly in the Atacama Desert in Chile

Parallel Event
Thursday, April 27, 18:00 - 19:30 PM
Celso Furtado Room, ECLAC

Zoom: Link to register

Program is attached.