April 20, 2024
Apparel, Fashion, Retail

US Bill Aims To Incentivise Fashion Reshoring & Circularity

A new US trade bill aims reduce reliance of textiles and apparel on Chinese imports and support domestic industry, while also boosting circular fashion offering US $14 billion in incentives.

The Americas Trade and Investment Act seeks to encourage reshoring and near-shoring of manufacturing supply chains with a heavy footprint in China.

It also aims to close a tax loophole that allows e-commerce giants like Shein and Temu to ship millions of clothing to the US annually without paying any duty.

The new bill includes billions of dollars of incentives for companies involved in circular fashion and includes resale platforms, textile waste sorting facilities and recyclers.

The bill offers more than $14 billion in federal incentives for businesses involved in the circular fashion space, with an idea to support an entirely new industry in America focused on textile recycling.

“If passed the bill would give a shot in the arm to the circular fashion economy,” said Rachel Kibbe, ED of trade lobby group American Circular Textiles.

“It’s the first bipartisan bill to contemplate fashion and the first time in history [textile] circularity has been contemplated at all at a federal level,” she added.

The proposed legislation includes a 15 percent tax reduction for businesses involved in collection, reusing, renting, repairing, sorting, processing or recycling textiles.

It also includes $10 billion in loans and $3 billion in grants to support manufacturing and reuse and recycling programmes, while $1 billion has been earmarked for research and development.

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