Selling textiles to EU & US: a compact guide to mandatory sustainability regulations

The textile industry is central to everyday life and in many sectors. However, the growth of textile production and consumption has intensified environmental impacts, with increased waste and use of natural resources. In the eastern markets, such us in the south America, where textile production is mostly concentrated, the sector is among the contributors to water and soil problems. The spread of “fast fashion” has accelerated consumption and reduced the lifespan of garments, promoting unsustainable purchasing patterns, and this is a highly sensitive topic in EU, as well as in the United States.

Challenges include the use of nonrenewable resources, such as synthetic fibers, and the dispersion of microplastics. Globally, the textile sector also has critical social issues, such as child labor and unfair conditions, affecting women the most.

For purchasing textiles, European Union (EU) and US regulations and guidelines focus on several key aspects, including traceability, environmental sustainability, production ethics and consumer safety. These aspects are governed by regulatory requirements, and supported by incentives and funding that help companies comply with the imposed standards. Let’s look at the main points.

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European Union (EU) regulations and obligations

Regulations on sustainability and traceability

1. EU TEXTILE STRATEGY (2022)

On March 30, 2022, the European Commission launched the “EU Strategy for Sustainable and Circular Textiles,” aimed at ensuring that by 2030 textiles placed on the European market are durable, repairable and recyclable, made from recycled fibers and free of harmful substances. The strategy aims to counter “fast fashion” and provide consumers with quality, long-lasting products.

The European Parliament, in a resolution dated June 1, 2023, endorsed the strategy, but called for further measures for a faster transition to sustainable models. Key actions include:

1. Sustainable design: introduce ecodesign rules to ensure that textile products are durable and recyclable, involving stakeholders to define the necessary sustainability features
2. Consumer empowerment: a new directive will protect against deceptive trade practices and limit the use of terms such as “sustainable” to only certified products
3. Digital Product Passport: this tool will provide detailed data on the sustainability of each product, helping consumers make informed choices and facilitating recycling and repair
4. Hazardous Substance Reduction: promote a Safe and Sustainable-by-design approach to reduce the use of hazardous chemicals in textile products
5. Extended Producer Responsibility (EPR): starting in 2025, legislation will require producers to finance textile waste management, incentivizing them to reduce waste and design more sustainable products.

This strategy, in synergy with existing legislation, represents a comprehensive plan to foster a sustainable, circular and competitive textile sector aligned with the goals of the European Green Deal.

2. REACH REGULATION (REGISTRATION, EVALUATION, AUTHORISATION AND RESTRICTION OF CHEMICALS)

The REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) Regulation is the EU’s main legislation to protect human health and the environment from the risks posed by chemicals. This is achieved through early and thorough identification of the intrinsic properties of chemicals, taking measures such as phasing out or restricting substances of very high concern.

REACH places responsibility on industry to manage the risks associated with chemicals and to provide information on their safety. Therefore, manufacturers and importers are required to collect information on the properties of their chemicals and register them in a central database at the European Chemicals Agency (ECHA). ECHA is the central point of the REACH system: it manages the necessary databases, coordinates the detailed evaluation of the information provided, and maintains a public database where consumers and professionals can consult information on the risks of chemicals.

3. LABELING AND TRACEABILITY

To sell textile products in the EU, they must comply with established labeling requirements.

The label must specify:

1. the composition of the fabric with the percentages of each fiber in descending order
2. a clear and legible text
3. the distinction between textile composition and other information (such as care instructions).

The label must be on all products with at least 80 percent textile fiber by weight (clothing, upholstery, curtains, etc.) and translated into the official languages of the EU countries where they will be sold.

Only a fabric made entirely of a single fiber may be called “100 percent,” “pure,” or “all,” such as “100 percent cotton.” Only the fiber names listed in the annex to the EU regulation are allowed. Alternatively, new fiber types can be requested.

For sustainability recognition, you can also apply for the EU Ecolabel.

Ethical and regulatory obligations

• Sustainable Sourcing Directive: includes ethical standards to protect workers’ rights by restricting imports from countries with unfair labor practices.
• Mandatory Due Diligence: the EU Corporate Sustainability Due Diligence Directive (2024/1760) is an initiative to promote responsible business practices. This legislation introduces legal obligations for large companies, obliging them to identify and manage negative impacts on human rights and the environment within their operations and supply chains. The main objective is to align corporate strategies with the transition to a sustainable economy and to strengthen human rights protection globally. From 2023, a regulation has been proposed for companies above a certain size to ensure due diligence in the supply chain, ensuring that suppliers respect human rights and workers’ rights.
• Green Claims Directive: with a new law on environmental claims, the EU is taking action against greenwashing to protect consumers and the environment. Ensuring that environmental labels and claims are credible and reliable will enable consumers to make more informed purchases and will increase the competitiveness of companies committed to the environmental sustainability of their products and activities.The Green Claims Directive requires companies to avoid misleading environmental claims (greenwashing) on textiles, and requires them to support claims with verifiable data.

Funding and grants

• LIFE Program: funding for projects related to sustainability and the circular economy, including those in the textile sector.
• European Innovation Council (EIC) and Horizon Europe: provide grants and funding for innovation and research, including sustainable textiles projects and advanced manufacturing technologies.
• European Structural and Investment Funds (ESIF): European Structural and Investment Funds (ESIFs) are EU regional policy financial instruments aimed at reducing inequalities between advanced and less developed regions by promoting economic, social and territorial cohesion. They finance enterprises and SMEs that adopt sustainable practices and promote the production of environmentally friendly textiles.

IF YOU ARE A FASHION OR FURNITURE COMPANY…
The importance of a production chain that is fully committed to sustainability and adheres to regulations is evident. This extends to the creation of the fabrics that will form the garments. Therefore, it is crucial for fashion and furniture companies to ensure that suppliers adopt solutions in line with standards and that are traceable. Specifically, concerning the focus of our magazine, it is essential to engage with producers, whether national or foreign, who understand and genuinely implement these practices. We know that one of the biggest environmental impacts in fabric production is wastewater. Reliable producers are those who return water to nature (or reuse it in their processes) completely free of any toxic substances. How can you identify such companies? We covered this in a previous article.

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United States (U.S.) regulations and obligations

In the United States, regulations are more decentralized, with environmental and traceability obligations varying at the federal and state levels, but there are regulations governing safety and business practices in the textile industry.

Federal and state regulations

1. TOXIC SUBSTANCES CONTROL ACT (TSCA)

The Toxic Substances Control Act (TSCA) of 1976 gives the U.S. Environmental Protection Agency (EPA) the authority to require reporting, recordkeeping, testing, and the imposition of restrictions on chemicals and their mixtures, including with respect to textiles.

2. FAIR LABOR STANDARDS ACT (FLSA)

Ensures compliance with labor regulations by prohibiting child labor and regulating working hours and wages for those employed in the textile industry. The Fair Labor Standards Act (FLSA) establishes rules on minimum wage, overtime pay, record keeping, and youth employment for private sector and federal, state, and local government workers in the United States. Workers covered by the law are entitled to a minimum wage of at least $7.25 per hour (as of July 24, 2009). For hours worked over 40 per week, there is an increased wage equal to at least one and a half times the regular wage.

3. CALIFORNIA CONSUMER PRIVACY ACT (CCPA) AND OTHER STATE REGULATIONS

Regulations for supply chain transparency and to limit the use of toxic chemicals in textile products sold in specific states, such as California.
The California Consumer Privacy Act (CCPA) of 2018 grants consumers more control over personal data collected by companies, establishing new rights for California citizens. Among these rights:

• right to know what personal data is collected, used, and shared by companies;
• right to have one’s personal datadeleted (with some exceptions);
• right to object to the sale or sharing of one’s data;
• right to non-discrimination for exercising one’s CCPA rights.

This law is a milestone in privacy protection for California consumers.

Labeling and traceability

• Federal Trade Commission (FTC): the FTC requires textile products to be labeled with information on fiber content, origin, and country of manufacture.
• California Transparency in Supply Chains Act: requires large companies to disclose their efforts to eliminate forced labor in the supply chain.

Funding and Incentives

• Small Business Innovation Research (SBIR) Program: offered by the federal government, provides funding for research and development, including sustainable textile innovation projects.
• USDA Rural Development Program: supports rural businesses, including textile projects, in implementing more sustainable technologies.
• State-level tax incentives: some states offer tax incentives for companies that adopt sustainable practices, such as recycling materials and using environmentally friendly fibers.

Deadlines and goals

Federal and state requirements tend to have different timelines.
Sustainability goals related to textile production and consumption vary, but generally align with environmental sustainability goals for 2030 or 2035.

CONCLUSIONS

Global textile industry navigates tightening EU and US regulations

Area	Obligation	Regulation	Deadline
EU	Sustainability and traceability	EU Textile Strategy, REACH	2025-2030
EU	Labeling	Textile Labeling Legislation	In force
EU	Due diligence	Due Diligence Act	2024-2025
USA	Chemical safety	TSCA	In force
USA	Traceability and Transparency	FTC Textile Act, CCPA	In force
USA	Labor standards	Fair Labor Standards Act	In force

EU and U.S. regulations are converging toward a greater focus on sustainability and workers’ rights. Textile companies in both Europe and the U.S. must prepare to invest in traceability, innovation, and sustainable practices to remain competitive and comply with emerging regulations.

For Asian and South American textile companies reading us, entering the U.S. and European markets sustainably requires adopting strategies and practices that meet sustainability regulations and consumer expectations in these areas. Water saving and waste management then become staples: investing in technologies to reduce water consumption and sustainably manage textile waste, such as fiber recycling and microfiber reduction, becomes a gateway to new markets.

In every industrial sector, sustainability-related regulations have been developed or are in the process of development. If they want to emerge, suppliers must know and effectively apply these practices in their production cycles, including wastewater treatment and recovery.