These challenges have led to a diminished consumer confidence and a drop in demand for textiles and garments, causing business owners to postpone investment decisions.
The Danish textile and clothing sector contributes DKR87bn ($13.72bn) annually to the GDP and supports 96,000 jobs. The sector represents 6% of Denmark's total goods exports.
Across Europe, approximately 200,000 companies in this sector employ 1.3 million workers and generate €170bn in turnover, marking it as a crucial component of local economies throughout EU regions.
EURATEX director general Dirk Vantyghem said: “Our textile companies face too many uncertainties. While the EU cannot solve them alone, we expect from the Danish Presidency to show some leadership and move forward on these many urgent topics. We have no time to lose if we want to safeguard the competitiveness of our industry.”
The industry urges the Danish Presidency to take decisive action to rebuild confidence in the EU by establishing definite timelines and a clear regulatory framework.
This would enable companies to strategise their investment and operational plans for the upcoming five years.
Some key dossiers outlined for progression:
- Advancing the Circular Economy Act to bolster demand for sustainable textile products and unify the market for textile waste through end-of-waste criteria.
- Expedited reform of the Union Customs Code with immediate and more ambitious measures, such as adjustments to the de minimis threshold and handling fees for online parcels.
- Implementation of the Waste Framework Directive to enable harmonized Extended Producer Responsibility (EPR) schemes throughout the EU.
- Clarification on the Green Claims initiative's future to prevent greenwashing in the fashion sector.
- Prompt ratification of the Mercosur FTA, from which European textile firms are expected to benefit.
- Meticulous oversight of negotiations with India to ensure a comprehensive and balanced trade agreement.
- Swift advancement towards an Energy Union that could lead to reduced energy costs for European manufacturers.
- A revision of the REACH chemicals regulatory framework that enhances transparency, predictability, and discourages company relocation outside of the EU. DM&T CEO Thomas Klausen said: “In these uncertain times we need the EU as a stabilising factor, and this also goes for the Danish fashion and textile industry. It is crucial that the EU creates a level playing field and ensures the predictability, the industry needs to make the necessary investments. We hope that the Danish Presidency will be a key driver in ensuring this.”
