Americas Act receives support from SMART Association

The Secondary Materials and Recycled Textile Association (SMART) recently announced its “strong support” for the Americas Trade and Investment Act (Americas Act), a piece of legislation introduced by federal lawmakers in March that includes more than $14 billion in federal incentives for circular innovation in the fashion and textile recycling sectors.

The bipartisan legislation, which was introduced by Sens. Bill Cassidy of Louisiana and Michael Bennet of Colorado and Reps. Maria Salazar of Florida and Adriano Espaillat of New York, has been designed to create an expanding and permanent partnership of countries in the Western Hemisphere to counter China’s influence over global manufacturing and geopolitics. The bill aims to boost domestic circularity and innovation for textiles while also addressing issues such as reshoring, onshoring and the threat of forced labor in supply chains.

SMART, based in Rockville, Maryland, says the bill represents a significant milestone for circular textiles, which are included as part of a comprehensive strategy to expand U.S. trade in the Western Hemisphere and enhance the textile industry’s competitiveness in the global economy. It offers strategic support for circular businesses and textile manufacturing in the U.S.

Key provisions of the Americas Act related to textile recycling and reuse include:

• the creation of textile reuse and recycling grants/loans, with $3 billion in grants, $10 billion in loans, $1 billion for innovation research and development (R&D) and $100 million for a public education campaign against fast fashion; and
• a 15 percent net income exclusion for qualified textile reuse and recycling activities.

“We applaud Sens. Cassidy and Bennet for charting a comprehensive strategy that bolsters our industry’s ongoing efforts to divert textile waste from landfills,” SMART President Brian London says. “The approval of the Americas Act is crucial to accelerate our efforts for sustainable textiles, aiming for a true circular economy without waste.

“This legislation not only enhances SMART’s long-term mission but significantly propels the United States to the forefront of textile recycling innovation. It ensures the protection of our textile supply chains, supports the resurgence of American-based jobs in the textile industry that had unfortunately been outsourced overseas in past decades and fosters enhanced regional collaboration with partner countries in Latin America.”

Established in 1932, SMART, an international nonprofit trade association, says it has promoted high standards and best practices for reusing and recycling textiles and related secondary materials, which is why it is supporting this legislation.

“The Americas Act is a monumental step forward, offering legislative support that powers the principles and long-range mission of SMART like never before,” London says. “We stand ready to guide and support this investment that would complement our current efforts of closing the loop on the billions of pounds of textile waste our industry handles yearly, driving significant economic and environmental benefits. With support like that outlined in the Americas Act, our textile recycling industry will increasingly mitigate waste while generating jobs and investment that can become a cornerstone for a healthy economy and a sustainable future.”

In a March news release announcing the legislation, Cassidy says the Americas Act is endorsed and cosponsored by the House Select Committee on the Chinese Communist Party Chairman Mike Gallagher.

“We need to relevel the playing field between freedom-loving democracies and those who exploit the rules like China,” Cassidy says. “We do that by refocusing on the Western Hemisphere to improve trade, bring manufacturing back to our shores and end China’s growing influence. Our Americas Act will make economies across the hemisphere more resilient, governments more stable and our hemisphere more prosperous.”

Espaillat adds that, at its core, the Americas Act is a multibillion-dollar job creation tool for the U.S. and its allies in Latin America and the Caribbean.

“With its reshoring and nearshoring loans, tax benefits and other targeted grant assistance for workers at home and in our Western Hemisphere partner countries, the Americas Act will bring jobs and investment back to our hemisphere and stem the root causes of migration by putting more money into the pockets of working families,” Espaillat says. “Importantly, by creating grant programs for both textiles and medical devices and equipment, this bill directly bolsters two of the largest and most important export industries for the U.S.’ current Western Hemisphere trade partners, including the Dominican Republic. All in all, the Americas Act represents the most transformative piece of legislation to benefit the Western Hemisphere in two decades.”