The rise of fast fashion led to a sevenfold increase in the global used clothing trade in the last four decades. Globally, more than 80 per cent of clothing (and 62 per cent in the EU) ends up as waste, destined for landfills or incineration. This is not only extremely wasteful, but also poses severe environmental and health hazards. A joint report by UNECE and ECLAC provides a detailed analysis of the second-hand clothing trade between Europe and Chile and shares policy recommendations.
According to UN Comtrade data, the top exporters of discarded clothes in 2021 were European Union (30%), China (16%), and the United States (15%) whereas the top importing regions were Asia (28%, predominantly Pakistan), Africa (19%, notably Ghana and Kenya), and Latin America (16%, mainly Chile and Guatemala).
The rise of low-cost synthetic fibres and trade liberalization accelerated offshoring of clothing manufacturing to low-wage labour markets. These trends led to mass production of inexpensive garments, mainly made from blended fibres which are difficult to separate and recycle. Consequently, reuse and recycling remain scarce, particularly in developed countries.
“When did we normalize throwing clothes away?” questions Lily Cole, Climate Activist and Advisor to UNECE. “As the world, mostly the Global North, has produced and consumed fashion at an unrelenting rate, a handful of countries, mainly in the Global South, have become cemeteries for the world’s unloved clothes.”
In Europe, only 15-20 per cent of disposed textiles are collected and of what is collected, about half are downcycled. Only one per cent of collected textile is recycled into high value outputs, such as new clothing. Out of the 55 per cent of collected clothes classified as reusable, only 5 per cent hold value in the EU second-hand markets, whereas 50 per cent derive value in export markets.
Over the past two decades, used clothes exports tripled in the EU, rising from 550,000 to 1.7 million tons annually. Today, Europe (including the United Kingdom) accounts for over one third of global used clothing exports, a share likely to increase as textile collection rates are expected to rise.
While the circular approach in clothing remains in its early stages, key policy initiatives have been introduced, including the 2020 adoption of the EU Circular Economy Action Plan (CEAP), the 2022 EU Strategy for Sustainable and Circular Textiles, and the 2023 implementation of the EU Ecodesign for Sustainable Products Regulation. However, these policies are yet to deliver the large-scale upstream solutions capable of tackling the systemic challenges of textile waste.
“The global used clothing market and its negative impacts are constantly growing. The textile industry must adopt more sustainable practices and foster traceability, circularity and sustainability. UN/CEFACT policy recommendations and standards will support this transition,” stressed UNECE Executive Secretary Tatiana Molcean.
In Latin America, many countries have introduced import bans on second-hand clothing to protect industries and environment from large-scale textile dumpling.
In contrast, Chile applies no tariffs nor quantity restrictions and only require used clothing import to undergo fumigation. As a result, Chile has become the world’s top 10 and the leading importer of used textiles in Latin America, receiving 126,000 tons of textiles in 2021. Forty per cent of these imports arrive via the port of Iquique, where clothes are manually sorted—mainly by women—into different quality categories.
The environmental and social impact of this practice has been severe, especially given that 75 per cent of all imported used clothes are deemed non-reusable. An estimated 30,000 tons of textile waste now covers 30 hectares of the Atacama Desert, causing severe pollution and posing health risks to nearby communities. At the same time, the trade provides employment and generates formal and informal income for national and migrant workers across Chile, especially in established stores and open-air markets.
“To address the environmental and social issues of used textile trade, the EU and Chile must work together on creating robust regulatory frameworks. Innovative approaches could be explored to regulate and reduce negative impacts by setting global standards for the trade, focusing on sustainability and social responsibility," highlights UNECLAC Executive Secretary, Mr. José Manuel Salazar-Xirinachs.
The joint UNECE/UNECLAC report outlines a series of targeted recommendations to address the environmental, social and economic challenges posed by the global second-hand clothing trade.
1. Embed circular economy principles in design. Set mandatory targets for fibre composition to improve quality, durability, repairability and recyclability.
2. Implement an Extended Producer Responsibility system by holding producers accountable for the product lifecycle impact, including the end-of-life management.
3. Invest in sorting and recycling products through financial incentives.
4. Adopt digital product passports to ensure traceability and accountability.
5. Promote consumer awareness through education campaigns on sustainable choices and responsible disposal practices.
1. Enhance customs procedures and digital traceability by improving customs and administrative measures at the port and by using the UN/CEFACT traceability standard to ensure digital traceability.
2. Adopt a Circular Economy Strategy for Textiles.
3. Foster public-private alliances for recycling projects through tax incentives and funds to support entrepreneurship, innovation and job creation for vulnerable groups, particularly in the Tarapacá region.
4. Strengthen the legal framework for waste management
5. Implement a Regional Solid Waste Control Plan by increasing inspections of landfills, clean points, and dumpsites to increase enforcement capacity of regional health authorities.
6. Accelerate the adoption of the Chilean draft law on environmental quality of soils.
The report also recommends modifying international trade agreements to better address sustainability challenges. For example, the 2023 Interim Trade Agreement between the EU and Chile, which includes a dedicated chapter on Trade and Sustainable Development, serves as a strong foundation for enhanced bilateral cooperation. The report suggests using this agreement as a template for future bilateral trade agreements between the EU and other partner countries.30
30 UNECE, ECLAC (2024). Reversing direction in the used clothing crisis: Global, European and Chilean perspectives. United Nations.
United Nations Economic Commission for Europe
Palais des Nations, Geneva
