Will a 3-Euro Tariff on Low-Value Imports Benefit Greek Clothing Companies?

European clothing companies face intense pressure from the influx of inexpensive Asian products, a trend that has accelerated in recent years. The post-pandemic era saw a surge in online shopping, coupled with European brands enhancing their e-commerce platforms, often leading to discounted prices. Simultaneously, Chinese e-commerce giants have capitalized on these shifts, launching their own online stores offering low-cost goods to Western consumers.

Further exacerbating the situation are global economic factors like the war in Ukraine, which has driven up inflation across Europe, diminishing consumer purchasing power. This economic climate makes the low prices of Asian goods, particularly from China, even more attractive. The US decision to remove tax exemptions for packages valued under $800 has also made European markets appear more appealing to Chinese companies.

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In other words, EU companies are being led by the EU to increase their production costs to meet all requirements, while every day borders are penetrated by products that do not comply with any environmental protection or sustainability rules.

The clothing sector is particularly hard-hit. While a European-made kimono might cost 90 euros, a similar item from a Chinese platform can be found for as little as 7 euros. This price disparity is difficult for European manufacturers to overcome, especially as they must adhere to over ten EU directives concerning environmental and quality standards, which increase production costs. In contrast, products entering the EU often bypass these regulations.

Theseanidēs, general director of the Association of Ready-to-Wear Knitwear Enterprises (SEPEE) in Thessaloniki, highlighted that packages valued under 150 euros, which constitute the majority of Chinese imports, were previously exempt from duties. This further complicated the competitive landscape. He noted that approximately 30% of the 5.9 billion low-value parcels imported into the EU last year contained clothing, with millions entering Greece. The exact origin of these garments is hard to trace, as Chinese companies often use large warehouses within the EU, obscuring the initial point of import.

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Of the 5.9 billion low-value parcels imported into the EU last year, an estimated 30% contained clothing, and millions of these ended up in Greece.