Latest news with #EU-Funded
Yahoo
01-08-2025
- Business
- Yahoo
Guatemala Wants American SHC Exports, Report Claims
American consumers generate 17 million tons of textile waste a year, according to an EPA estimation in 2018, with 66 percent buried and 19 percent burned; 14.7 percent is recovered. But how the United States' secondhand clothing exports move through the value chain in transit to Guatemala is actually a net-positive for Central America's largest economy—and its 'impoverished population,' a recent report found. Commissioned by the Atlanta-based clothing wholesaler Garson & Shaw, the report—a 'study of trade, distribution and local impact,' per the title—explored how Guatemala's secondhand clothing (SHC) sector plays a 'critical role' in supporting the country's economy. More from Sourcing Journal EU-Funded Project Makes Lignin Breakthrough in Biobased Research Kantmanto's Women Sellers Are Tired of Dealing With the Global North's Textile Trash UK Secondhand Shopping Will Top $6 Billion, Amazon Reports 'As domestic resale markets in the U.S. continue to develop, the export of SHC functions as a complementary channel that supports the extended use of garments beyond the domestic market,' reads the 'Secondhand Clothing Imports from the United States to Guatemala' report. 'Guatemala has become a prominent destination for such exports, where SHC contributes to meeting consumer demand for affordable apparel, stimulates economic activity in local markets, and provides livelihood opportunities. The findings, conducted by consultancy group Full Cycle Resource (FCR), suggest the 'thriving' reuse marketplaces reduce how much of the United States' textile waste gets burned and/or buried while also promoting local entrepreneurship and circularity to overall keep capital flowing through credential clothing. 'This report is significant because it shifts the conversation from waste to opportunity; it offers concrete evidence that global reuse systems are not only environmentally beneficial but also economically and socially valuable,' said Lisa Jepsen, CEO of Garson & Shaw. 'It highlights the need to integrate international reuse into U.S. waste and circular economy policy.' In 2023, Guatemala imported nearly 290 pounds of SHC under Harmonized System (HS) code 6309—a globally recognized classification for trade in used textiles and clothing—which represented 57 percent of total clothing import volume. Almost all of it—specifically, 98.6 percent—originated from the United States, the secondhand supplier found. 'Given the high level of market concentration, any analysis of quality and waste within Guatemala's SHC sector is largely indicative of the characteristics of United States exports under HS code 6309,' the report reads. 'The continued dominance of secondhand clothing, particularly in terms of affordability and accessibility, reflects its importance for low-income households amid persistent poverty and economic informality.' Within Guatemala's SHC trade are two leading players: the informal market and the formalized one. The former comprises micro-retailers and vendors—also known as pacas—while the latter contains large retail operations, like Megapaca. Either way, the supply chain starts with importers, who either sell unsorted clothing (known as 'rupa cruda' or the aforementioned credential) or sort it for distribution. That clothing is typically sold in three categories: ropa cruda (unsorted), clasificados (sorted clothing) and saldos (secondhand retail pull or retail excess from local markets), the Atlanta supplier said. 'A clear preference exists for importing unsorted clothing bales (ropa cruda), as it allows for local value addition through domestic sorting, pricing, and redistribution across formal and informal channels,' per the report. In turn, it 'avoids increased costs and reduced flexibility that would result from pre-sorting in high-wage countries like the United States.' SHC shipped to Guatemala goes through multiple layers of value extraction by local sorters, retailers and vendors, according to Jennifer Wang, founder of FCR and lead author of the report. FCR specializes in 'capturing' the global textile industry's economic and trade dynamics in an effort to bolster sustainability efforts like transparency and circularity. 'In fact, between 88-92 percent of clothing is sorted for reuse—what we found is that the activity of sorting locally was not only valued but vital,' Wang said. 'It adds economic value, creates jobs and ensures clothing can meet the specific needs of local markets.' Guatemala-based Megapaca—the largest importer and retailer of used clothing in Central America, sourcing primarily from the United States—underscored the importance of the trade. 'Unsorted bales are the backbone of what we do,' said Mario Peña, Megapaca's co-founder and general manager. 'They allow us to create thousands of jobs in our sorting centers and stores, while enabling us to meet demand across diverse markets and income levels.' For the United States, the report recommended that policymakers should strengthen upstream collection systems and improve donation practices. And preserve the option to import to countries like Guatemala to manage SHC flows in ways that maximize local economic and social benefits. For Guatemala, the report recommends recognizing SHC as a platform for women's economic empowerment. The sector surveyed found strong female participation, with nearly 61 percent of traders and about 57 percent of business owners identifying as women—higher than the national average of 27 percent, the supplier of wholesale secondhand clothing found. 'The SHC sector plays a significant role in advancing economic inclusion—particularly for women—by offering accessible pathways to entrepreneurship and income generation in contexts where formal employment opportunities may be limited,' the report reads. 'This disparity underscores the SHC sector's potential as a platform for female entrepreneurship, possibly due to its low entry barrier, flexible working conditions and lower capital requirements.' Per the United Nations Commodity Trade Statistics Database (UN Comtrade), the European Union (30 percent), China (16 percent) and the United States (15 percent) were the leading exporters of discarded clothing in 2021. Asia (28 percent, predominantly Pakistan), Africa (19 percent, especially Ghana and Kenya) and Latin America (16 percent, mostly Chile and Guatemala) were the leading importers of said waste. 'To build truly circular economies, the Global North must recognize its role in supporting reuse systems that work,' Jepsen said. 'By doing so, we can reduce waste at home and contribute meaningfully to sustainability and economic inclusion abroad.'
Yahoo
29-07-2025
- Business
- Yahoo
EU-US Trade Deal Draws Mixed Reviews from Bloc's Leaders
Following President Donald Trump and European Commission President Ursula von der Leyen's announcement Sunday that the U.S. and the European Union had negotiated a trade deal (which will see EU countries subject to 15-percent tariffs), EU leaders have started weighing in on the new way forward for the transatlantic trade agreement. While von der Leyen praised the trade agreement sitting alongside Trump in Scotland, other leaders seem to have a less rosy outlook. More from Sourcing Journal EU-Funded Project Makes Lignin Breakthrough in Biobased Research EU Regulators Accuse Temu of Allowing Sale of Illegal Products US Reaches Trade Truce With EU, May Extend China Tariff Pause François Bayrou, France's prime minister, expressed his disappointment for the trade agreement. 'It is a dark day when an alliance of free peoples, united to affirm their values and defend their interests, resolves to submission,' Bayrou wrote on his X account. Still, other major leaders said the agreement helped divert what could have been a much more serious threat to countries in the 27-member bloc and their respective businesses. Giorgia Meloni, Italy's prime minister, told reporters Sunday at a press briefing in Ethiopia that while she still needed to 'study the details' of Trump and von der Leyen's deal, it's promising that the two nations came to an agreement, noting that 'trade escalation between Europe and the United States would have had unpredictable and potentially devastating consequences.' German Chancellor Friedrich Merz shared a similar sentiment. 'This agreement has succeeded in averting a trade conflict that would have hit the export-orientated German economy hard,' he said in a statement. Trump had previously threatened a 30-percent tariff on goods inbound to the U.S. from EU countries; last week, he stated that the U.S. had 'a 50-50 chance of making a deal with the EU.' That von der Leyen—who had originally fought to see a 10-percent flat tariff rate on most EU goods—kept up negotiations with a frustrated Trump can be considered a win, some EU leaders, including Portuguese Prime Minister Luís Montenegro, believe. 'The EU-U.S. trade agreement brings predictability and stability, vital for Portuguese companies and the economy. It avoids escalation but places new demands on the pursuit of more trade agreements, the reduction of barriers, and the transformative agenda of simplification and cost reduction,' Montenegro wrote in an X post. Maroš Šefčovič, EU trade commissioner, called on both parties to 'keep strengthening our transatlantic ties,' thanking U.S. Trade Representative Jamieson Greer and U.S. Secretary of Commerce Howard Lutnick for their collaboration on the newfound agreement. Some leaders in the EU continue to focus their attention on a free trade environment. Bart De Wever, prime minister of Belgium, called Sunday's understanding 'a moment of relief but not of celebration.' 'I sincerely hope the United States will, in due course, turn away again from the delusion of protectionism and once again embrace the value of free trade—a cornerstone of shared prosperity,' he wrote in an X post. Petteri Orpo, prime minister of Finland, said this agreement should not mark the end of future trade discussions between the bloc and the U.S. 'Work must continue to dismantle trade barriers. Only free transatlantic trade benefits both sides the most,' Orpo wrote in a translated X post. The Trump administration doesn't appear amenable to the prospect of free trade with almost any country across the globe. Much of the president's economic strategy has been built around negotiating new trade deals that guarantee U.S. access to other markets, and bolstering American manufacturing across a variety of industries he sees as key to the country's future success. While Trump heralded last week's deal with Japan as 'the largest deal ever made,' the agreement with the EU has the propensity to impact myriad industries, including fashion and apparel. A lower-than-threatened tariff will see U.S. companies importing European goods—like luxury apparel, footwear and leather—paying less than some may have expected. Still, any increase in cost per unit could deal a blow to companies already struggling to reach price-conscious consumers. According to data from 7thonline, U.S. retailers have shown anxiety about their ability to absorb price hikes brought on by tariffs. Just over one-third of retailers said the only way they could avoid price hikes is with a 0-percent tariff increase, and a further 43 percent said the highest tariff increase they could afford to absorb was 25 percent. Sign in to access your portfolio
Yahoo
29-07-2025
- Business
- Yahoo
US Reaches Trade Truce With EU, May Extend China Tariff Pause
Protracted negotiations with the European Commission have come to an end, with Washington reaching a trade truce with the European Union on Sunday. The 27-member trade bloc will face 15-percent tariffs across a wide range of products and consumer goods, narrowly avoiding the 30-percent duty rate initially threatened by President Donald Trump before Friday's tariff deadline. The president, alongside European Commission President Ursula von der Leyen, announced the framework from his Turnberry, Scotland golf course on Sunday, calling it 'the biggest deal ever made' before walking back his comments slightly. The distinction actually belongs to Japan, which struck a deal with the U.S. last week, he said. More from Sourcing Journal EU-Funded Project Makes Lignin Breakthrough in Biobased Research CK Hutchison Seeks 'Major' Chinese Investor in $23 Billion Port Sale EU-US Trade Deal Draws Mixed Reviews from Bloc's Leaders 'We are agreeing that the tariff straight across for automobiles and everything else will be a straight-across tariff of 15 percent,' Trump added. The EU also agreed to purchase $750 billion in energy from American sources, and plans to invest $600 billion into the U.S. economy, though details on that element of the agreement were not elucidated. The European contingent, by contrast, will completely lower its trade barriers. 'All of the countries will be opened up to trade with the United States at zero tariffs, and they're agreeing to purchase a vast amount of military equipment,' Trump said. Von der Leyen said the dealmaking process was 'indeed very tough.' The trade bloc had been angling in recent weeks for a lower duty rate of 10 percent. 'But we came to a good conclusion for both sides,' she added, noting that finding consensus with the U.S. will bring stability and predictability to the trade relationship, which has been marked by volatility in recent months. 'That's very important for our businesses on both sides of the Atlantic.' 'We've had a very good relationship over the years, but it's been a very one sided transaction, very unfair to the United States, and I think both sides want to see fairness, but it's been a very, very one sided deal that it shouldn't be,' Trump said, reiterating his stance that the trade imbalance between Europe and the U.S. must be rectified. The president noted that tariff letters to other nations that haven't yet struck deals with the U.S. are on the way, to be received by trade partners before Aug. 1. Last week, Trump hinted that Canada might be among them, saying trade officials 'haven't really had a lot of luck' negotiating. Earlier this month, Trump threatened the country with 35-percent tariffs in a letter to Prime Minister Mark Carney. Meanwhile, an exclusive report from the South China Morning Post on Sunday revealed that a short-term resolution for U.S-China trade may be brokered shortly, with an Aug. 12 deadline looming. The Hong Kong-based news outlet wrote that the 90-day bilateral tariff pause, negotiated by D.C. and Beijing trade officials in Geneva in May, is expected to be extended by another three months. Trade talks between the two nations will take place in Stockholm on Monday, sources close to the matter said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
