Latest news with #LisaJepsen
Yahoo
04-08-2025
- Business
- Yahoo
US second-hand clothing exports help combat waste, boost Guatemala's economy
The study, conducted by Full Cycle Resource, shows second-hand clothing exports help divert textile waste from landfill and incineration in the US while generating jobs, entrepreneurship, and drives circular economy practices in the Central American nation. Garson & Shaw CEO Lisa Jepsen said: '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. It highlights the need to integrate international reuse into US waste and circular economy policy.' The US is one of the largest producers of textile waste globally, with a staggering 85% of used clothing ending up in landfills or incinerators annually. As per the report, Guatemala imported 131 million kilograms of used clothing from the US in 2023, which represents 98% of its total used clothing imports. The study found that nearly 90% of these garments are reused within the country. The report notes that second-hand clothing industry in Guatemala is advancing gender equity, with close to 60% of related businesses being women-owned. In Guatemala, imported second-hand clothing are categorised as either sorted, bales that are already categorised by item type and quality or unsorted, which refers to bales that contain a mix of garments in their original collected condition. Unsorted bales are particularly valued as they provide local businesses with opportunities for sorting based on specific market demands, thus creating jobs and adding value to the local economy. Full Cycle Resource founder and lead author of the report Jennifer Wang said: 'Second-hand clothing shipped to Guatemala goes through multiple layers of value extraction by local sorters, retailers, and vendors. 'In fact, 88% to 92% of clothing is sorted for reuse. What we found is that the activity of sorting locally was not only valued but vital. It adds economic value, creates jobs, and ensures clothing can meet the specific needs of local markets.' Central America's used clothing importer Megapaca co-founder and general manager Mario Peña added: "Unsorted bales are the backbone of what we do. They allow us to create thousands of jobs in our sorting centres and stores, while enabling us to meet demand across diverse markets and income levels." Recommendations for US policymakers The report calls for enhancing public education on responsible textile donating and harmonising collection regulations to improve textile collections. It also urges ensuring that new Extended Producer Responsibility (EPR) policies consider global reuse to prevent trade barriers and preserve second-hand garment quality. 'To build truly circular economies, the Global North must recognise its role in supporting reuse systems that work. By doing so, we can reduce waste at home and contribute meaningfully to sustainability and economic inclusion abroad,' Jepsen added. In March, the Secondary Materials and Recycled Textiles Association (SMART) called on the Office of the United States Trade Representative (USTR) to address the restrictions imposed on US exports of second-hand clothing. "US second-hand clothing exports help combat waste, boost Guatemala's economy" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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.'
