Europe is strengthening its textile trade defenses through a broader regulatory framework that goes beyond traditional anti-dumping duties, as policymakers respond to rising import pressures, growing concerns over industrial overcapacity, and increasing demands for supply chain transparency.
The European Union imported more than €197 billion ($223 billion) worth of textiles, apparel and footwear products in 2024, with China remaining the bloc’s largest external supplier despite ongoing efforts to diversify sourcing. Industry groups say the surge of low-cost imports, combined with weak consumer spending and high manufacturing costs, has intensified pressure on European textile producers.
The shift marks a significant evolution in Europe’s trade policy. Instead of relying solely on anti-dumping investigations, which often take 12 to 18 months to complete, the EU is increasingly combining customs surveillance, sustainability regulations, digital traceability systems and forced-labour compliance requirements to regulate market access.
According to industry estimates, the European textile and clothing sector employs around 1.3 million workers across more than 143,000 companies, making it one of the continent’s largest manufacturing industries.
However, EURATEX reported that textile production in the EU fell by approximately 5% in 2024, while clothing production declined by nearly 8%, reflecting a prolonged industry downturn. Factory closures and job losses have accelerated across several member states as manufacturers struggle to compete with lower-cost imports.
European governments are now urging Brussels to adopt faster and broader trade-defense mechanisms. France, Italy, Spain, the Netherlands and Lithuania recently called on the European Commission to strengthen safeguards against what they describe as unfair trade practices and import surges. The countries argue that existing anti-dumping measures are often too narrow and allow exporters to reroute shipments or shift production to avoid tariffs.
China remains central to Europe’s concerns. According to European Commission data, roughly 75% of ongoing EU anti-dumping and anti-subsidy investigations involve Chinese products, highlighting growing scrutiny of Chinese exports across multiple industrial sectors. European policymakers have repeatedly warned that industrial overcapacity and state-supported manufacturing are distorting global competition.
One of the most significant changes is the growing use of compliance requirements as trade instruments. The EU’s upcoming Digital Product Passport (DPP) will require companies to provide detailed information about product origin, material composition, environmental footprint and recycling characteristics. The system is expected to become mandatory for textiles under the Ecodesign for Sustainable Products Regulation (ESPR) beginning in the coming years.
Also Read: Europe’s Textile Recycling Faces €11 Billion Challenge
Industry analysts believe these requirements could fundamentally reshape global apparel supply chains. Suppliers exporting to Europe will increasingly need to maintain digital records covering raw material sourcing, production processes, chemical usage and labour standards. Products lacking sufficient documentation could face restricted access to the EU market regardless of price competitiveness.
The rise of ultra-fast-fashion platforms has further intensified regulatory discussions. European authorities are examining the growing volume of low-value parcels entering the bloc through e-commerce channels. More than 4.6 billion low-value packages entered the EU in 2024, nearly double the level recorded two years earlier. Policymakers argue that existing customs frameworks were not designed to handle such volumes and may create unfair competitive advantages for overseas sellers.
For major apparel-exporting countries such as Bangladesh, Vietnam, India, Türkiye and China, the new trade environment presents both risks and opportunities. Europe remains Bangladesh’s largest garment export destination, accounting for roughly 50% of the country’s total apparel exports. While stricter compliance obligations may increase operational costs, suppliers with strong sustainability credentials and transparent supply chains could gain a competitive advantage.
Bangladesh currently hosts more than 230 LEED-certified green garment factories, including many of the world’s highest-rated sustainable textile facilities. Industry leaders believe these investments could help exporters align with Europe’s emerging sourcing requirements and maintain access to key markets.
As Brussels prepares further reviews of its trade-defense framework, industry observers expect Europe’s textile trade policy to increasingly combine tariffs, digital traceability, customs monitoring and sustainability compliance. The result could be a new model of market protection where transparency, environmental performance and supply chain accountability become as important as price and production capacity in determining access to one of the world’s largest apparel markets.
