"WE MUST INVEST IN THE IMAGE OF PORTUGAL AS A CENTER OF SUSTAINABLE PRODUCTION"

The bet of the Portuguese textile and clothing sector as a sector committed to sustainability and circular economy is a reality that is important to publicize internationally - otherwise it may not become a business rational. Based on an old saying, we can say that “it is not enough for the Portuguese textile sector to be sustainable; it must be known by all others that it is”. Mário Jorge Machado President of ATP considers that the sector must find a mechanism to multiply this awareness.

What is the importance of the Sustainable Fashion From Portugal project in your opinion?

It is very important. One of the great differentiating factors in promoting Portugal is to be seen as a sustainable producer, which we already are, but we are in the process of transforming ourselves to be even more sustainable and more circular. If we do not promote all the effort the companies are making in terms of technology, in training people for this transformation, we run a great risk of not being internationally valued for all this effort that is being made.

Do you think the textile sector has already done all it should stand out internationally as a country of sustainable production?

We are still a long way off. We need to invest heavily in our image, not only sector wise but also as being one of the places on the planet, where the best quality is produced in the most sustainable way. We must invest in the image of Portugal as a center of sustainable production. There is still a lot to do to promote this image of the textile and clothing sector as an area that is committed to sustainability. There is still a huge difference between the reality of what we are in terms of industry and of what we are investing to promote what we are.

In practical terms, what needs to be done?

We need to insist on what we have been doing: showing in the main events and in the main international fairs the products that are made in Portugal. We also need to create events in some countries - namely the North American and Scandinavian markets - to target the main brands and the main designers by promoting and communicating to those markets and customers, showing them what we do.

That perspective fits one of the Portugal 2030 strategies, doesn't it?

Exactly. In addition to participating in events, we ourselves have to create events and we have to do so where what the Portuguese sector is doing in terms of sustainability will be discussed and disseminated.

Does the European Union also have a sustainability plan for the textile sector? Is it a good plan?

The European directives that are being drawn up - and Euratex is taking part in the discussion - if implemented in accordance with what Euratex is suggesting to the European Commission, the plan will be a great opportunity for the European textile and clothing sector, particularly for the Portuguese sector. Because it will force the playing field to be levelled: whoever wants to sell in Europe will have to comply with the same production rules in terms of sustainability and transparency as those complied with by European companies. It will be a great effort in terms of border control requirements, but it will be a way for us to guarantee this even playing field, which has been completely unbalanced.

Do you believe that the European Union will maintain that commitment? For example, the Indian textile confederation seems to be wanting more flexible rules.

We are convinced that it is. There cannot be a rhetoric of having to make a transition to a more circular and sustainable textile sector, and then go and make derogations that allow those who do not have sustainability practices to continue to sell in the European Union as if nothing had happened. The European Union must remain uncompromising - we are demanding this at Euratex. We cannot allow ourselves to have rules not to pollute and at the same time allow others to pollute. In fact, the European Commission itself has already admitted that we must stop being naive - applying rules to some and allow others to apply other rules.

Will the rules apply to the whole chain, or only to production arriving in the European Union? In other words, will there be traceability from origin?

We can only impose rules on products that are to be sold within the European Union. What producers do on their territories does not fall within the Union's scope.

The Portuguese textile sector had an excellent performance in 2022 namely on the export front. What was the reason for this performance?

We must divide the year into two parts: a first phase, which did contribute to growth, and a second phase of the year in which growth was very low. In this second phase, we saw the impact of war and the impact of inflation on shrinking demand. Hence the fact that we are not celebrating the value of exports, because we are experiencing a situation where there is a strong decrease on the demand side, with companies forced to reduce their number of working days: there is no demand, there are no orders for every day of the week.

With the aggravating factor that the bad part of 2022 “sticks” with 2023 Precisely.

In this scenario, what do you anticipate for 2023?

What we can anticipate with some clarity is that the first months of 2023 will be quite difficult in terms of demand. The expectation is that, during 2023 the situation will improve, either because inflation will start to be controlled and the price of energy will start to decrease, or because there will be an end to war.

These three factors will allow what was positive in 2022 to continue in the second half of 2023. We must overlook the second half of 2022 and the first half of 2023: a lost year. t