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EU legislators push for new mandatory legislation for the clothing industry.

2017-10-03

The European Union's legislative bodies are pushing for new mandatory legislation for the garment industry. On May 19, 2017, the Council of the European Union published "Conclusions on Sustainable Garment Value Chains," aiming to prevent human rights violations and encourage companies to take socially responsible actions to ensure the garment industry complies with international standards concerning labor rights and environmental protection. Furthermore, the Council encouraged the European Commission to temporarily suspend preferential trade treatment for trading partners who violate labor and human rights commitments. The Council further requested the Commission to improve traceability in the textile industry, emphasizing the need to track chemicals used in the garment manufacturing process and worker exposure to toxic substances. The Council reached these conclusions after the Commission published an approved working paper on April 24, 2017. In the working paper, the Commission proposed several EU measures on "establishing sustainable value chains in the garment industry through EU development actions." The working paper outlines various measures to achieve a fairer, safer, and more environmentally friendly garment manufacturing industry. The European Commission's recommendations focus on: 1. Economic empowerment for women; 2. Guaranteed wages for fair work and living; and 3. Transparency and traceability in value chains. The third point is particularly noteworthy due to the highly decentralized nature of production chains, which often subcontract different stages of the manufacturing process to companies in distant countries. Following the approval of the Commission's working paper, the European Parliament passed a non-binding resolution on April 27th by a majority vote, requiring the Commission to convert the working paper into a genuine legislative proposal. The European Parliament believes that the legislative proposal should include measures to promote the following: 1. Labor rights and human rights in the textile industry; 2. Sustainability, traceability, and transparency in value chains; 3. Rational consumption; 4. Providing customers with information on whether purchased textiles meet EU standards; 5. Corporate social responsibility and binding due diligence measures; and 6. The use of environmentally friendly and sustainably managed raw materials. Similar to the Commission's working paper, the European Parliament supports incentives for private manufacturing companies investing in more sustainable and equitable supply chains. For detailed information on the "Sustainable Value Chain Conclusions in the Apparel Industry," please refer to the attached file: Garment Value Chains st09381.en17.pdf. Source: Hong Kong Trade Development Council Economic Research (2017-06-02) (Compiled by PIDC). Attachment file: Garment Value Chains st09381.en17.pdf

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