In a letter addressed to European Commissioner Jessika Roswall, who oversees Environment, Water Resilience and a Competitive Circular Economy, the coalition argued that the new Ecodesign requirements should not rely on restrictive definitions that primarily assess materials based on recyclability or a limited set of lifecycle indicators.

Instead, MTLC believes future legislation should acknowledge the broader environmental, social and economic contributions of renewable natural materials by evaluating them through a wider range of sustainability indicators.

Representing more than 80 organisations from across the natural fibre and renewable materials value chain, the coalition said the criteria-based approach for textile Ecodesign rules would provide a more balanced assessment of sustainably sourced renewable materials.

According to MTLC, sustainability evaluations should extend beyond product end-of-life considerations and include factors such as responsible farming practices, soil conservation, efficient water management, biodiversity protection and the welfare of rural communities. The coalition maintains that these criteria would offer a more comprehensive understanding of a material’s overall environmental impact instead of creating a fixed ranking of fibre types.

MTLC also urged the European Commission to ensure that both renewable and synthetic textile fibres are assessed using the same transparent and consistent sustainability standards. It argued that comparable evaluation methods are essential for establishing fair competition across the textile industry.

The coalition further stated that future regulations should consider the complete lifecycle of textile materials, including the origin of raw materials, sourcing practices, production impacts and end-of-life performance, enabling objective comparisons between different fibre categories.

The proposal has gained support from the Brazilian Association of Cotton Producers (ABRAPA), an active member of MTLC that continues to engage with European policymakers during the development of the new legislation.

ABRAPA believes the European Union’s sustainability framework will have implications far beyond the region, as the bloc’s regulations are likely to influence textile standards and market expectations worldwide.

The association stressed that science-driven and comprehensive assessment methods are necessary to ensure natural fibres receive equal consideration alongside synthetic alternatives within the new policy framework.

Commenting on the issue, Lisa Ventura, Head of International Partnerships at ABRAPA, said; “Brazilian cotton proves that scale and sustainability can go hand in hand. As the global textile sector evolves, sustainability frameworks must be built on credible, science-based methods that ensure a level playing field for all materials.”

The collaborative initiative combines textile recycling with AI to tackle one of the sector’s biggest challenges—finding sustainable uses for donated clothing that cannot be resold or reused. The project focuses on converting unusable textiles into valuable products while also modernizing donation sorting through artificial intelligence.

According to Western University, more than 43 million pounds of donated goods were received across Ontario’s Great Lakes region during the last fiscal year. While many items are resold or repurposed, a significant volume remains unsuitable for reuse, leaving organizations with limited alternatives other than disposal in landfills.

To address this growing issue, Goodwill joined forces with researchers from Western University and Fanshawe College, combining expertise in sustainable materials, recycling technologies, and intelligent automation.

Scientists from Western’s Institute for Chemicals and Fuels from Alternative Resources (ICFAR), working alongside Fanshawe’s Centre for Research and Innovation, are using pyrolysis to transform discarded clothing into biochar. The thermal conversion process breaks down mixed-fibre textiles—including materials containing dyes and chemical additives—into a carbon-rich product suitable for environmental applications.

Biochar is widely recognized for improving soil quality by enhancing nutrient retention, increasing water-holding capacity, and supporting beneficial microbial activity. Preliminary findings suggest that biochar produced from discarded textiles may promote healthier plant growth compared with untreated soil.

Explaining the challenge of textile recycling, Heejin Lee, a postdoctoral research associate at Fanshawe College collaborating with ICFAR, said:

“Textile waste is often difficult to recycle using conventional methods because it’s a mixture of different kinds of fibres with dyes and additives. That means many textiles end up in landfills.”

Researchers are also exploring enzyme-based recycling techniques capable of breaking down natural fibres such as cotton and hemp into sugars that could serve as raw materials for future industrial processes. The team noted that a large proportion of donated textiles across North America still ends up in landfill once resale opportunities have been exhausted.

Alongside its textile recycling with AI initiative, Western University is developing an intelligent sorting system designed to improve how donated goods are processed. At present, most items are inspected and sorted manually, making the process both labour-intensive and susceptible to reusable products being discarded.

The AI-powered platform uses smart cameras positioned along a conveyor belt to identify, classify, and monitor donated items in real time. The technology is intended to assist workers by flagging reusable products and reducing the likelihood of valuable materials being mistakenly sent to landfill.

Discussing the system, Professor Min Xia from Western University’s Faculty of Engineering said:

“Cameras will help to identify the items, and if they miss them, the system will give the workers a signal to easily identify them. Then again at the end of the conveyor, there will be another camera to guarantee nothing ends up in the landfill that shouldn’t.”

Since the textile recycling project began more than four years ago, the partnership has successfully diverted approximately 5,000 pounds of clothing waste from landfill. The research team has also applied for federal funding to expand the programme and develop solutions for the remaining volume of unsellable textiles.

The AI-enabled sorting system is expected to become operational within the next year, with researchers continuing to refine both the automation platform and textile recycling technologies to further reduce landfill waste and strengthen circular economy practices.

The advisory follows a decision by US Customs and Border Protection (CBP) to introduce new postal entry requirements after indefinitely suspending the $800 de minimis exemption, which previously allowed many low-value imports like apparel and other fashion goods to enter the country without customs duties.

Under the revised framework, the Entry Type 13 postal entry system will become the primary mechanism for processing international postal imports. Businesses exporting to the US are expected to adapt their operations and strengthen customs compliance to ensure uninterrupted trade.

CBP introduced the Entry Type 13 postal entry system to align postal imports with other commercial import channels. The initiative is designed to improve customs duty collection on shipments that were previously exempt, enhance shipment screening through expanded data reporting, strengthen intellectual property enforcement, and combat the misuse of postal networks for narcotics smuggling.

The interim regulation came into effect on July 24, 2026, ending the long-standing duty exemption for international postal parcels. While the International Mail Duty Worksheet (IMDW) remains available as a temporary filing option, carriers must now submit additional shipment information, including carrier identification codes, package counts, and declared duty amounts.

A further phase of the changes will take effect on October 24, 2026. From that date, shipments involving partner government agencies, trade remedy measures, or duty-free claims will no longer qualify for IMDW processing. Instead, these consignments must be filed through the Entry Type 13 postal entry system or entered as standard commercial imports requiring detailed Harmonized Tariff Schedule (HTS) classifications and comprehensive product descriptions.

The updated rules also introduce greater administrative requirements, as every Entry Type 13 filing must be submitted by a licensed customs broker acting as the Importer of Record. This is expected to increase compliance responsibilities for both UK exporters and their US importing partners.

Industry observers believe the new system will become the standard route for processing postal shipments at scale once the October deadline takes effect.

The regulatory changes are also expected to increase logistics costs, reduce service efficiency, and create additional uncertainty across international supply chains, potentially affecting both importers and end consumers. The transition could prove especially challenging because many postal operators and logistics providers are still adapting their systems to accommodate the new requirements.

The changes come at a difficult time for UK exporters. According to a UK government factsheet, exports of goods to the United States declined by 10.3%, equivalent to £6.8 billion ($9.06 billion), over the past year.

Although the UK’s services sector has continued to record export growth, merchandise exporters are facing mounting pressure from changing trade regulations and rising compliance obligations. The introduction of the Entry Type 13 postal entry system is expected to add further operational complexity for businesses serving the US market.

To remain competitive, exporters are being encouraged to partner with experienced logistics and customs specialists that can help navigate the evolving regulatory environment, minimize disruptions, and ensure compliance with the new US import requirements.

The Registry provides infrastructure for registering unique product identifiers and required metadata, while detailed passport data remains decentralised. Textile and apparel are among the priority product groups expected to use Digital Product Passports as product-specific rules are introduced.

Digital Product Passport Registry Opens for Testing

The Digital Product Passport is intended to improve access to reliable product information, strengthen traceability across supply chains and support compliance in the EU Single Market. Businesses can already test the registration process through a secure user interface or an application programming interface, helping them prepare before product-specific obligations take effect.

The European Commission said the current testing phase should support a smoother rollout. However, the launch of the registry does not yet introduce Digital Product Passport requirements for textiles. Those obligations will depend on future product-specific rules and transition periods. The Registry launch came one day after the ESPR ban on destroying unsold apparel, clothing accessories and footwear began applying to large companies.

For the apparel sector, the overall direction is becoming clearer, even though the detailed requirements are not yet final. The European Commission has identified textiles and apparel as a priority area in its 2025–2030 ecodesign work plan.

Its sustainable and circular textiles strategy also sets out a 2030 vision in which products placed on the EU market are more durable, easier to repair and more readily recyclable, with greater use of recycled fibres. Textile-specific measures and related data requirements are still being developed.

Apparel Components May Require Greater Traceability

As textile-specific ecodesign measures are developed, brands may need to consider more than the main fabric. Buttons, buckles, fasteners, eyelets, patches and other trims can affect how long a garment lasts, whether it can be repaired and how easily materials can be separated for recycling.

Depending on the final requirements, product passports could eventually include information about trim materials, recycled content, suppliers, care compatibility and replacement options. For fashion brands, garment manufacturers and product-development teams, this may place greater emphasis on apparel components during sourcing.

Teams may need consistent evidence covering durability, repairability, traceability and claims relating to recycled content or environmental impact. Some garment trim manufacturers, such as Frameless Asia Pacific, already offer sustainable trims made from GRS-certified recycled metals, biodegradable plastics, and natural materials like corozo.

As the detailed requirements are still being developed, brands should not assume that a single certificate will demonstrate compliance. Specifications, test results and chain-of-custody records may all be relevant.

Technical Skills and RMG Sector Automation Challenges

A primary factor contributing to the female labor decline is the rapid implementation of RMG sector automation. New machinery requires specific technical skills that many female garment workers currently lack. A report from FSG in 2022 indicated that nearly one-third of women in the sector have incomplete primary education, compared to 18 per cent of their male counterparts. This educational gap limits their ability to operate advanced equipment such as flat lock, overlock, and button-hole machines, which are becoming standard in automated production lines.

Safety Concerns and Night Shift Restrictions

Beyond technical skills, safety considerations also influence hiring patterns. As factories move toward 24-hour operations, employers often prefer male workers for night shifts due to safety concerns regarding women traveling or working late hours. This preference further contributes to the overall female labor decline in the RMG sector, as women are less frequently trained or considered for roles that require round-the-clock availability.

Economic Pressures and Operational Instability

The Bangladesh garment industry is also facing external pressures that impact employment. Political uncertainty, banking challenges, and a decrease in international orders have led to factory closures. In some instances, these circumstances are utilized to reduce the number of female staff. Additionally, rising living costs near industrial hubs are prompting older women, particularly those with children, to leave their positions and return to rural areas, as sustaining a household on current wages becomes increasingly difficult.

Working Conditions and Garment Worker Rights

The physical and psychological environment of the workplace remains a critical factor for retention. Reports describe 12-hour workdays in cramped, poorly ventilated spaces, leading to recurring health issues like respiratory problems and skin allergies. Furthermore, garment worker rights are a central concern, as many employees lack health insurance. High levels of verbal abuse and harassment are also reported; an Icar report noted that 80 per cent of women workers have witnessed or experienced sexual violence or harassment in the workplace.

Moshrefa Mishu, president of the Garments Sramik Unity Forum, noted that while the industry has grown, the conditions for workers have not improved proportionally. She emphasized that women remain among the lowest-paid contributors despite being the historical backbone of the sector. The combination of technological shifts and harsh workplace realities continues to reshape the female labor in RMG sector participation rates.

Strategic Partnerships with Major Fashion and Outdoor Brands

Prominent fashion labels, including Musinsa Standard and Umbro, have already released T-shirt lines utilizing the Huvis Duraron-Cool Fiber this summer. These products are specifically designed to ensure breathable and comfortable wear during periods of extreme heat, establishing them as essential summer clothing items. Furthermore, the outdoor brand National Geographic has expanded the application of these functional materials into footwear and equipment, specifically targeting areas of the body that require constant temperature regulation. While initially focused on the bedding industry, the material is now becoming a staple in everyday fashion and sportswear.

Evolution of Specialized Textile Technology

The journey of this specific cooling fiber began in 2022 when the company developed Korea’s first polyethylene material specifically optimized for garments. This breakthrough in textile technology allowed the material to maintain its moisture-wicking and quick-drying properties while matching the structural strength of polyester. These improvements have streamlined the manufacturing process, making it more efficient for high-volume knitting and weaving. As the apparel market continues to demand higher performance from fabrics, these technical advancements ensure that summer clothing remains functional and durable.

Global Market Outlook and Quality Standards

Looking ahead, the company plans to broaden the application of its functional materials into the realms of workwear and innerwear. There is also a concentrated effort to enter international markets, particularly in regions where high average temperatures drive a consistent demand for temperature-regulating textiles. CEO Kim Seok-hyun emphasized that the company will continue to refine the qualities required by the apparel market, such as color rendering and wearing comfort, to ensure the brand remains a leader in the functional textile space. By focusing on both cooling performance and durability, the aim is to set a new standard for summer-specific textile technology.

Analysis of Production Dynamics

Operating metrics reflect a stable outlook for the industry. Currently, the total backlog held by companies ensures approximately 3.5 months of production. Furthermore, the Production Capacity utilization rate for the sector was recorded at 79.7%.

Sector-Specific Growth

When analyzing individual segments relative to the first quarter of 2026, the domestic market showed growth or stationary trends across all categories, with spinning and weaving experiencing the most pronounced increases. In international markets, the Italian  Textile Machinery sector saw positive growth, specifically within the weaving, knitting, and finishing segments.

Outlook for Third Quarter 2026

Looking ahead, companies anticipate that sales volumes for the third quarter of 2026 will remain largely stable compared to the previous period. The industry maintains a cautious stance regarding the domestic market, while expectations for foreign markets remain balanced between growth and decline, reflecting a sense of cautious optimism.

Industry Perspectives on Market Stability

Marco Salvadè, president of ACIMIT, noted that despite ongoing international uncertainty, it is encouraging that the indicator remains positive in foreign markets, especially considering that approximately 80% of total Order Intake originates from outside the country. The domestic landscape presents a different scenario, as it is currently influenced by comparisons with the strong second quarter of 2025 and the introduction of the 2026-2028 hyper-depreciation incentive. Launched in June, the impact of these incentives on overall Production Capacity and investment remains to be seen as the market continues to adjust to the new policy framework and shifts in Market Demand.

According to the state energy corporation, Petrobangla, the disruption was caused by a spark detected within the terminal’s control systems. The subsequent LNG terminal outage forced an immediate cessation of operations to facilitate repairs and ensure safety. Consequently, the manufacturing sector is grappling with a severe factory gas shortage, leading to significant operational delays and reduced industrial output.

Industrial Production Faces Significant Slowdown

The impact is most visible in the manufacturing sector, where many units report textile production cuts of up to 40%. Business leaders in the garment industry state that the current factory gas shortage makes it impossible to maintain full capacity or meet standard production timelines.

As the Bangladesh Gas Supply Crisis continues to affect the national grid, Petrobangla remains focused on restoring the terminal to full functionality. For now, the reported textile production cuts highlight the sector’s vulnerability to energy supply instabilities caused by the unexpected LNG terminal outage. The reduction in the Bangladesh gas supply remains a critical concern for factory owners striving to maintain export commitments during this period of energy instability.

Performance-Driven Industrial Fabrics

Industry reports indicate that the Technical Textiles Market is on a trajectory for significant growth, with valuations projected to reach $241.5 billion by 2035. This expansion is supported by a compound annual growth rate of 6.2 percent. Driving this demand are sectors such as automotive, healthcare, defense, and construction, where there is an urgent need for thermal resistance, chemical stability, and superior mechanical strength.

Advancements in Production Technology

Innovation in manufacturing is changing how these materials are created. Breakthroughs in 3D weaving, non-woven electrospinning, and 3D knitting allow for the production of complex structural geometries without seams. Currently, 3D weaving represents the largest segment of this industry, accounting for 23.4 percent of the total market share.

The Rise of Smart Textiles and Wearable Technology

A distinct, rapidly evolving segment within the broader industry is the emergence of Smart Textiles. Moving beyond simple moisture-wicking properties, these materials now feature embedded electronics, conductive yarns, and carbon nanotubes. This Wearable Technology captures biometric data, such as heart rate and muscle fatigue, or harvests kinetic and thermal energy to power micro-sensors.

Market Projections for Electronic Fabrics

Data suggests that the market for Smart Textiles will see explosive growth, potentially reaching $67.62 billion by 2035. This represents a significant leap, driven by the integration of IoT devices and a heightened consumer focus on health and wellness. These Performance Materials are increasingly found in specialized athletic wear and medical monitoring garments, effectively bridging the gap between clothing and electronic hardware.

Commitment to Sustainable Innovation

As the industry scales, manufacturers are placing a heavy emphasis on Sustainable Innovation. There is a concerted effort to move away from petrochemical reliance through the use of bio-fabrics derived from mycelium, algae, and hemp. Furthermore, advanced chemical recycling processes are now being deployed to handle complex blended fibers, ensuring that the production of these high-tech materials does not compromise environmental standards.

Sector-Wide Adoption

The need for resilience is also pushing innovation in personal protective equipment (PPE) and construction materials. With stricter global safety regulations in mining and manufacturing, companies are investing in fabrics that offer enhanced protection while maintaining comfort. As research and development continue to accelerate, these materials are expected to become even more deeply integrated into both industrial and consumer daily life.

According to the Cotton Development Board (CDB), Bangladesh currently produces just over 224,000 bales of cotton lint annually, supplying only around 16–17% of the industry’s requirements. To bridge this gap, authorities have set phased production targets of 500,000 bales by 2030 and 1.9 million bales by 2050. Achieving this Bangladesh cotton production target is expected to reduce the country’s heavy reliance on imported raw cotton while improving supply chain stability.

Bangladesh’s garment and textile industry consumes approximately 9 million bales of cotton each year, making it one of the world’s largest cotton importers. Annual imports currently range between 7.5 million and 8 million bales. During FY2025–26 alone, the country imported nearly 7.3 million bales valued at around Tk45,000 crore.

Officials estimate that reaching the interim goal of 500,000 bales by 2030 could save nearly Tk800 crore in foreign exchange every year by lowering import requirements. The Bangladesh cotton production target is therefore expected to strengthen both the country’s trade balance and raw material security.

To achieve these objectives, the government plans to introduce higher-yielding hybrid cotton varieties, expand cultivation into new agricultural zones and continue providing financial incentives to growers. While cotton is currently cultivated on roughly 45,000 hectares, the CDB believes as much as 200,000 hectares could potentially support cotton farming.

Expansion efforts will primarily focus on char lands, the Barind region and suitable plains in hilly districts where food crop cultivation remains limited. Officials say this approach will allow cotton acreage to increase without affecting national food production.

For FY2026–27, the government has allocated Tk20 crore to encourage cotton cultivation. Around 25,000 smallholder farmers across 26 districts will receive quality seeds, fertilisers and pesticides to grow cotton as an intercrop on one bigha of land.

In addition, authorities are integrating cotton growers into the national farmer card programme while exploring carbon trading-linked financing to improve farmers’ access to credit and encourage wider cultivation.

According to Md Rezaul Amin, Executive Director of the Cotton Development Board, cultivating cotton on one bigha requires an investment of approximately Tk15,000, while farmers can generate close to Tk60,000 by harvesting around 15 maunds of seed cotton. He also noted that every kilogram of domestically produced cotton reduces import expenditure by roughly $4, highlighting the economic benefits of expanding local production.

Researchers at the Cotton Development Board added that climatic conditions across more than 32 districts are favourable for cotton cultivation. They also believe that introducing genetically modified cotton varieties in the future could significantly improve yields, helping Bangladesh reduce import dependence while strengthening the competitiveness of its textile and apparel sector.