What's Happening?
Italy has taken a significant step to address the impact of ultra-fast fashion by imposing a levy on low-cost imports. The Italian Senate passed the 'Legge di Bilancio 2026,' which introduces a 2-euro levy on parcels valued under 150 euros from non-EU
countries. This measure targets platforms like Shein and Temu, aiming to regulate the influx of low-cost, low-quality goods. The bill, which still requires approval from the Italian Parliament's Lower House, is part of a broader effort to protect the domestic fashion industry. The move aligns with the EU's decision to close loopholes that have allowed ultra-fast fashion companies to thrive.
Why It's Important?
The introduction of this levy is crucial for the Italian fashion industry, which has been advocating for measures to curb the unregulated entry of low-cost goods. By imposing this levy, Italy aims to protect its domestic market from the negative impacts of ultra-fast fashion, which often undermines local producers with cheaper alternatives. This move also reflects a growing trend in Europe to regulate the fashion industry more strictly, ensuring fair competition and quality standards. The levy could lead to increased costs for consumers and businesses relying on these imports, potentially reshaping the market dynamics.
What's Next?
The bill's approval by the Italian Parliament's Lower House is expected by the end of the year, with no capacity for changes. If passed, the levy will be implemented, potentially leading to a decrease in the volume of low-cost imports. This could encourage consumers to turn to higher-quality domestic products. The EU's similar measures, set to be implemented by 2026, indicate a broader regulatory shift in the region. Fashion industry stakeholders will need to adapt to these changes, possibly by enhancing their value propositions or exploring new markets.
