European Garment Industry Demands Action Against Asian E-Commerce Giants

European clothing manufacturers have signed a joint letter urging the European Union to take action against the impact of Asian e-commerce platforms like SHEIN, TEMU, and AliExpress on the market and local employment.

Key Concerns and Arguments

• Unfair Competition: Industry leaders, including Yann Rivoallan (Chairman of the French Women’s Ready-to-Wear Federation), argue that China is flooding the market with “disposable” low-cost goods to keep its own factories running, creating an uneven playing field.
• Job Losses: In France alone, competition from these platforms is estimated to have destroyed nearly 50,000 jobs over five years. Over 14,000 jobs were lost in just the past two years, leading to many store closures in both major and mid-sized cities.
• Environmental & Health Impact: Pascal Canfin, a member of the European Parliament’s Environment Committee, called the situation a “scandal,” citing concerns over user safety, health, and the massive amount of textile waste generated by fast fashion.
• Quality Issues: Experts warn that a €5 T-shirt is a poor investment for consumers because it lacks durability and only lasts a few washes, suggesting it is better to buy higher-quality, longer-lasting goods.

The “Duty-Free” Loophole

The core of the frustration lies in tax and tariff regulations:

• In 2024, approximately 4.6 billion parcels valued under €150 entered the EU market (about 145 parcels per second).
• 91% of these came from China, primarily through SHEIN and TEMU.
• Because these parcels are valued under the €150 threshold, they are currently exempt from customs duties, a loophole that local European companies (who must pay tariffs on imports) find unfair.

Industry Demands

The joint appeal—supported by Euratex and industry federations from France, Italy, Spain, Germany, and Portugal—calls for:

1. Stronger Tariff Barriers: Immediate EU-wide action to close tax loopholes.
2. Increased Investigations: Accelerated probes into the business practices of SHEIN and TEMU.
3. Systemic Reform: Unified European enforcement to protect the environment and the local job market.

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