Date: 25/06/2024

EU’s ecodesign regulation seen hurting textiles, footwear exports

The European Union’s (EU) latest ecodesign regulation, which imposes rigorous sustainability criteria on all products within the bloc, will prohibit the disposal of unsold textiles and footwear which can potentially restrict order volumes. The new regulation is likely to impact Indian exporters, especially smaller enterprises. According to Mr Mithleshwar Thakur, Secretary General at the Apparel Export Promotion Council, as the industry adapts to the new ESG (environmental, social, and governance) standards, such sudden changes impact smaller businesses. The new regulation is being seen as a non-tariff barrier and governments have been asked to raise this issue during the free trade negotiations, as these standards could nullify the benefits of tariff reductions being pursued. Although small and medium enterprises have temporary exclusions from the regulations adopted by the Council of the European Union, they are deemed inadequate, as per a report.
Source: Exim News Service: New Delhi, June 24