Italy to apply extra levy on Chinese goods to safeguard its own fashion industry

Italy plans to apply an extra levy on some imported Chinese goods to help protect its fashion industry, government sources told Reuters on Wednesday. The move is aimed at avoiding unfair competition in the market for what is one of Italy’s key industries, the people said, asking not to be named.

“We will present a measure to tackle the ultra fast fashion phenomenon: an invasion of low-cost foreign products that damage our producers and put consumers at risk,” Industry Minister Adolfo Urso said in a statement at the end of a meeting with fashion industry representatives in Rome.

The government plans to intervene by adopting a scheme envisaged in a European Union directive on the so-called Extended Producer Responsibility (EPR), the sources said.

The charge will force manufacturers to cover the costs of collecting, sorting and recycling their products once they become waste. Some of Italy’s top fashion brands are themselves facing pressure to ensure that their subcontractors are in compliance with rules on workers’ rights.

Italian prosecutors have alleged that luxury shoemaker Tod’s failed to adequately oversee its suppliers in order to pursue higher profits. The company – which is not under investigation – said that it complies with the law. Five other luxury brands have already been put under judicial administration for similar reasons in Italy since the start of last year.