EU Textile Industry Pushes for Higher Parcel Levy to Drive Circularity

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Just one week after the European Commission established a handling fee of 2 euros for small parcels arriving from third countries, Europe’s textile and clothing industry has made its position clear: that figure needs to go up — significantly. Industry representatives are calling for the fee to be raised to 10 euros per parcel, arguing that the current charge falls well short of what is needed to level the playing field and make textile circularity a genuine reality across the continent.

The demand was formally put forward at the European Parliament in Brussels on September 30, during a debate titled ‘Making Circularity in Textiles Viable in Europe: Transparency, Recycling, and Industrial Competitiveness’. The session brought together representatives from the Portuguese and European textile sectors, European institutions, and organisations working in circularity, recycling, and innovation.

The Case Against the 2-Euro Fee

César Araújo, president of ANIVEC — Portugal’s National Association of the Clothing, Apparel and Fashion Industries — led the charge against the current levy. He described the 2-euro handling fee as wholly inadequate and presented data illustrating the sheer scale of the challenge: approximately 2.7 billion small parcels entered the European market in 2023, rising to 4.1 billion in 2024, and reaching close to 6 billion in 2025.

In Araújo’s assessment, the now-dismantled ‘de minimis’ regime was a key enabler of this surge, facilitating a massive influx of products — particularly through Asian e-commerce platforms — into the EU market without adequate checks or costs.

“This is not about customs duties. It is about fair competition, product safety, taxation and consumer protection,” Araújo stated during the Brussels debate.

He further argued that the revenue generated by a higher parcel levy should be directed toward funding the human and technological resources necessary to inspect the hundreds of millions of parcels entering Europe each year. He also called for enhanced monitoring of imports and a closer examination of the impact of the Generalised System of Preferences, with the aim of enabling the EU to respond swiftly to any trade imbalances.

European Textile Industry: Sustainability Cannot Come at the Cost of Jobs

At the core of the Brussels debate was a fundamental tension: how can the European textile industry transition to a more sustainable, circular model without placing the full financial burden on European producers, while competitors from outside the bloc operate under far less stringent conditions?

Araújo addressed this directly, stating that green ambitions cannot be achieved by hollowing out domestic production. “Europe cannot become greener or cleaner by losing its industry. If production simply moves to another part of the world, emissions will not disappear. European jobs will disappear,” he said.

The European textile industry currently comprises around 200,000 companies and supports approximately 1.2 million jobs. Araújo’s message was unambiguous: the sector is not seeking protection from competition but rather assurance that competition operates on fair terms.

Practical Tools for Making Textile Circularity Work

The debate also turned to the practical instruments available to support the EU textile circularity agenda. Discussions covered the Digital Product Passport, eco-design requirements, and Extended Producer Responsibility (EPR) schemes, alongside the considerable logistical challenges involved in the collection, sorting, and recycling of textile waste.

Araújo outlined three priorities he considers essential for making circularity economically viable within the European textile industry. First, the creation of a functional market for recycled fibres. Second, formal recognition of the value of recycled materials produced in Europe. Third, an EPR scheme equipped with eco-modulation mechanisms capable of rewarding products that are more durable, more repairable, have a smaller carbon footprint, and incorporate a higher share of recycled materials.

He also raised the question of labelling, arguing that the ‘Made in Europe’ designation should go beyond indicating place of production to also communicate the conditions and methods used during manufacturing — giving consumers a more complete picture of the products they purchase.

In his closing remarks, Araújo called for European-level support for recycled fibres, the establishment of eco-modulation mechanisms to encourage investment in sustainability, and the development of a dedicated European solution for textile waste. He urged that the European Union’s next budget cycle allocate specific resources toward supporting the transformation of the sector.

Who Was in the Room

The Brussels debate was moderated by journalist and event host Jack Parrock and included contributions from several key figures across the industry and circularity space: Mário Jorge Machado from EURATEX; Marc Puyuelo from Coleo; Eva Moalic from Refashion; and Miguel Gonçalves from Nau Verde. It was the second such meeting organised in Brussels in 2026, with organisers indicating their intention to remain active contributors to the European conversation on competitiveness, sustainability, and the future of the European textile industry.

LUSITANO Project: Investing in Textile Transformation

On the innovation front, the LUSITANO Project is working to drive structural change across the Portuguese textile value chain — from fibre to finished garment. The initiative brings together 17 partners and represents a total investment of 111.5 million euros. Its focus spans the adoption of advanced technologies, including artificial intelligence, as well as the development of sustainable and circular production solutions for yarns, fabrics, knitwear, and garments made from natural and recycled fibres.

The project is coordinated through CENIT — the Centre for Textile Intelligence — a Portuguese non-profit association whose principal member is ANIVEC. CENIT conducts strategic work in internationalisation, innovation, and communications for the Portuguese textile and clothing sector. Through its MODAPORTUGAL strategy, the organisation works to strengthen the international standing of an industry defined by its blend of tradition, creativity, sustainability, and technology.

The broader message from Brussels was consistent: the path toward EU textile circularity must be built on fair trade conditions, meaningful financial instruments, and policy frameworks that support — rather than undermine — the European textile industry’s capacity to lead the transition.

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