To curb the harmful effects of fast fashion, France is currently discussing a tax of five euros on every fast fashion item sold. This tax proposal, initiated by French MP Antoine Vermorel Marques and supported by the Horizons group, is a decisive statement against the environmental and social damage caused by fast fashion giants such as Shein and Temu. This is intended to reduce dependence on overseas production and promote local production. But the effectiveness of this idea in fundamentally reshaping the fast fashion landscape is still being tested.
Niki de Schryver is the founder and managing director of Cosh! The sustainability platform Cosh! is committed to sustainable fashion practices, a thriving local economy and a diverse, small-scale retail landscape. The platform is now active in Belgium, the Netherlands, Germany and Spain.
Cosh! supports the spirit of the proposed tax, which is to uncover the hidden costs of fast fashion. Investigations of Shein products, such as those by Greenpeace Germany, have uncovered alarming chemical safety violations and underscore the urgent need for transparency and accountability. Although the tax is a step in the right direction, Cosh! However, it is questionable whether it goes far enough to reduce the ecological and social impacts of fast fashion. The organization highlights the need for more robust legislation to enforce producer responsibility and sustainable supply chains.
With this in mind, Cosh! signed a statement together with Fair Trade Belgium and key Belgian stakeholders in favor of the rapid adoption of the Sustainable Business Due Diligence Directive (CSDDD). This policy is important for creating a level playing field, which is critical to achieving sustainable supply chains. Essentially, it requires companies to take responsibility for their environmental footprint and human rights impacts within their supply chains.
Our concern: This tax could inadvertently enable companies like Shein to view the €5 tax as an absolution for their ecological footprint, potentially reinforcing the status quo. To address this, Cosh! emphasizes that penalties should target the production rather than consumption of substandard goods, thus promoting responsible brands and supporting local craftsmanship, and reinforcing the ethos of laws such as France’s AGEC law , which advocates waste reduction and a circular economy.
The focus of the legislation is on online retail, which has no physical presence in France. The law is intended to protect local companies from competition from fast fashion giants. Cosh! However, calls for a comprehensive strategy that encompasses the full spectrum of fast fashion’s impact beyond the digital market.
There is a nuanced argument that Shein’s dominance could help sustainability by outdoing other fast-fashion companies like Zara or H&M and reducing fast-fashion’s physical footprint in brick-and-mortar retail. This could give traditional retailers some breathing room. The emerging scenario could force a significant shift towards degrowth among European brands and retailers, challenging them to rethink their production and consumption patterns. However, this could shift the challenge more into the digital realm, with unclear implications for local employment and environmental standards.
Cosh! comments on France’s 5 euro tax on fast fashion
Cosh! proposes another forward-looking solution: restricting imports from companies that ignore EU sustainability and employment standards. This could force a reassessment of production and distribution models and encourage companies to localize their activities more. Such measures could stimulate the local economy, raise production standards and improve supply chain transparency.
This tax is an important stimulus for a dialogue about the role of the legislature in shaping a sustainable fashion industry. The challenges ahead for small, responsible brands in complying with new sustainability regulations and communication are significant. Cosh! calls for a systemic, holistic approach to reform and argues that while the €5 tax is a laudable start, it is only the first step in a long journey to dismantle the fast fashion model.
As we think about the wider implications of this tax, it is clear that a collaborative effort from consumers, brands and policymakers is essential to integrate sustainability into decision-making in the fashion industry. Cosh! advocates that the introduction of similar tax measures in other European countries could move the fashion industry significantly towards sustainability and bring it in line with the goals of the EU’s Green Deal. This initiative by France underlines its commitment to securing the future of its important fashion sector and signals a path that, if taken together, could lead to profound, systemic change.
This translated and edited post previously appeared on FashionUnited.com.