In a pioneering move to counteract the detrimental effects of fast
fashion, France has introduced a proposed levy of 5 euro on each fast
fashion item sold. Spearheaded by French MP Antoine Vermorel Marques and
backed by the Horizons Group, this tax proposal is a decisive statement against the
environmental and social havoc wreaked by fast fashion behemoths like SHEIN
and Temu. It represents a crucial effort to pivot from reliance on overseas
manufacturing to bolstering local production. Yet, the effectiveness of
this surcharge in fundamentally transforming the fast fashion landscape
remains under scrutiny.

Cosh! acknowledges the
tax’s role in highlighting the hidden costs associated with fast fashion.
Investigations into Shein’s products, such as those by Greenpeace Germany,
have revealed alarming chemical safety violations, underscoring the urgent
need for transparency and accountability. While the tax is a step in the
right direction, Cosh! questions if it goes far enough to mitigate fast
fashion’s extensive environmental and social impact. The organisation
underscores the necessity for more robust legislation to enforce producer
responsibility and sustainable supply chains.

In light of this, Cosh!, alongside Fair Trade Belgium and key Belgian
stakeholders, has endorsed a statement advocating for the swift enactment
of the Corporate Sustainable Due Diligence Directive (CSDDD). This
directive is essential for establishing a level playing field critical to
achieving sustainable supply chains. Essentially, it mandates that
companies take responsibility for their environmental footprint and the
human rights impacts within their supply chains.

Our concern is that this tax might inadvertently allow companies such as
Shein to perceive the 5 euro tax as absolution for their environmental
footprint, potentially entrenching the status quo. To counter this, Cosh!
emphasises that penalties should target the production rather than the
consumption of substandard goods, thereby promoting responsible brands and
supporting local craftsmanship, further reinforcing the ethos of laws like
France’s AGEC Law, which champions waste reduction and a circular
economy.

The legislation’s focus on online retailers lacking a physical presence
in France is intended to shield local businesses from the overwhelming
competition of fast fashion giants. However, Cosh! calls for a
comprehensive strategy encompassing the full spectrum of fast fashion’s
impact beyond just the digital marketplace.

There’s a nuanced argument to be made about Shein’s dominance
potentially aiding the sustainability cause by out-competing other fast
fashion entities such as Zara or H&M and diminishing the physical footprint
of fast fashion in the brick-and-mortar retail scene. This could offer a
reprieve to traditional retailers. The unfolding scenario could compel a
significant transformation towards degrowth among European brands and
retailers, challenging them to reconsider their production and consumption
patterns. Nevertheless, this could shift the challenge more into the
digital domain, with ambiguous implications for local employment and
environmental standards.

Cosh! weighs in on France’s 5 euro fast fashion tax

Cosh! proposes a forward-thinking solution: restricting imports from
companies that flout EU sustainability and employment standards. This could
compel a reevaluation of production and distribution models, nudging
companies towards more localised operations. Such measures could invigorate
local economies, elevate production standards, and enhance supply chain
transparency.

This tax is an imperative dialogue opener about the legislative role in
sculpting a sustainable fashion industry. The impending challenges for
small, ethical brands in navigating new sustainability compliance and
communication are significant. Cosh! calls for a systemic, holistic
approach to reform, asserting that the 5 euro tax, while a commendable
start, is but the first step on a long journey towards dismantling the fast
fashion model.

As we contemplate the broader implications of this tax, it’s clear that
a concerted effort from consumers, brands, and policymakers is essential to
weave sustainability into the fabric of fashion decision-making. Cosh!
champions the idea that adopting similar fiscal measures in other European
countries could significantly propel the fashion industry towards
sustainability, aligning with the EU’s Green Deal objectives. This
initiative by France underscores its commitment to future-proofing its
significant fashion sector and signals a path that, if followed
collectively, could lead to profound, systemic change.