US second-hand clothing exports drive waste reduction and economic growth in Guatemala
A new study from Full Cycle Resource sheds light on the positive impact of second-hand clothing exports from the US to Guatemala, demonstrating how these exports are reducing textile waste while contributing to the Central American nation’s economy. This report highlights the importance of textile reuse and its role in supporting jobs, entrepreneurship, and the circular economy in Guatemala.
Reducing Textile Waste
The US, one of the largest producers of textile waste globally, faces a major challenge, with 85% of used clothing ending up in landfills or incinerators each year. In 2023, Guatemala imported 131 million kilograms of second-hand clothing from the US, making up 98% of the country’s total used clothing imports. This process of reusing textiles is not only environmentally friendly but also economically valuable for Guatemala.
According to Lisa Jepsen, CEO of Garson & Shaw,
This report shifts the conversation from waste to opportunity. It shows that global reuse systems provide environmental, economic, and social benefits. The findings stress the need to integrate international reuse into US waste and circular economy policy.
Lisa Jepsen, CEO of Garson & Shaw
The Economic Benefits for Guatemala
The study reveals that nearly 90% of these garments are reused within Guatemala. These clothes are sorted either by quality and item type or remain unsorted. Unsorted bales offer valuable opportunities for local businesses, which sort the clothes based on market needs, creating jobs and adding value to the local economy.
Jennifer Wang, founder of Full Cycle Resource and the study’s lead author, explained, “Sorting second-hand clothing locally is not just valued, but vital. It adds economic value, generates jobs, and ensures clothing meets the specific demands of the local market. Between 88% and 92% of garments are sorted for reuse, making this process essential to the industry.”
Promoting Gender Equity in Guatemala
The second-hand clothing industry in Guatemala is also contributing to gender equality. The report notes that nearly 60% of businesses involved in the industry are women-owned, helping advance gender equity in the local workforce.
Megapaca, one of Guatemala’s leading used clothing importers, also emphasized the importance of unsorted bales. Co-founder Mario Peña stated, “Unsorted bales are the backbone of our operations. They allow us to create thousands of jobs at our sorting centers and stores while meeting diverse market demands.”
Recommendations for US Policymakers
The report includes key recommendations for US policymakers to enhance textile reuse efforts. These recommendations include:
- Educating the public on responsible textile donation
- Harmonizing collection regulations to improve textile collections
- Ensuring Extended Producer Responsibility (EPR) policies support global reuse, avoiding trade barriers and maintaining the quality of second-hand clothing
Jepsen added,
For circular economies to succeed globally, the Global North must support effective reuse systems. By doing so, we can reduce waste at home and contribute to sustainability and economic inclusion abroad.
Lisa Jepsen, CEO of Garson & Shaw
