IWTO at the OECD Forum: Regulatory Pressure Mounts on Fast Fashion

IWTO Secretary General Dalena White attended the OECD Forum on Due Diligence in the Garment and Footwear Sector in Paris, 11-12 February, where discussions on e-commerce pressures, fast fashion regulation, and a new recycling due diligence guide set the agenda for responsible business conduct across the textile chain.

Sessions addressed how global supply chain shocks – from the pandemic and armed conflicts to shipping disruptions, trade tensions, and tariffs – have exposed vulnerabilities in traditional sourcing approaches and heightened risks to responsible business conduct. Climate change and its impacts on textile workers, and decarbonizing the global textile chain, were also central themes.

Here, we give you the key takeaways for the wool industry.

E-Commerce and the Pressure on Supply Chains

The growth of e-commerce and demand-driven business models is reshaping supply chain structures and pushing production stress down the pipeline. This was a key focus of the forum’s second day.

E-commerce now accounts for 30% of global retail sales, with 1.7 trillion USD generated annually through online platforms, according to speaker Professor Sheng Lu of the University of Delaware. Ultra-fast fashion models, driven by algorithms and real-time consumer data, compress production timelines and erode labour conditions and profit margins for manufacturers further down the chain.

France’s government representative, Maylis Souque of the Direction Générale du Trésor, reported that 5.8 billion parcels were re ceived through e-platforms in France last year, with 200,000 inspected at Paris-Charles de Gaulle airport alone. Regulatory action is following: a 2-euro tax on small parcels takes effect this year, and at EU level, the 150-euro customs duty exemption is set to be abolished, with further changes applying from 2028.

France has also referred a draft law on the environmental impact of fast fashion to the EU for comment.

Speakers in the e-commerce session agreed that fast and ultra-fast fashion businesses must adopt risk policies aligned with OECD due diligence guidelines, and that businesses should abide by the rules of the  countries where they trade.

>Implications for Wool

While wool sits firmly outside the fast fashion model, these shifts matter for the wool industry. The tightening regulatory environment around due diligence and supply chain transparency applies across the entire textile pipeline. The competitive pressure of synthetic fast fashion directly affects wool’s market positioning.

The increasing policy emphasis on labour standards and traceability plays to wool’s strengths, underpinning the value of the certification and provenance frameworks the industry has invested in. The abolition of the EU de minimis threshold may also help level the playing field for quality natural fibres competing against high-volume, low-cost imports.

New OECD Guide on Recycling Due Diligence

A key output of the forum was the launch of a new OECD report: Due Diligence on Recycling Processes in the Garment and Footwear Sector. With upcoming textile regulations expected to introduce recycled content requirements, due diligence in recycling is becoming relevant for every part of the recycling production pipeline, including wool’s.

The report addresses risk assessment, worker protection during the transition to circular products, and accountability throughout the recycling value chain, making this a practical resource for IWTO members navigating this evolving landscape.

The full report is available here: https://www.oecd.org/en/publications/due-diligence-on-recycling-processes-in-the-garment-and-footwear-sector_19beec59-en.html