In the international trade of textiles and apparel, the World Trade Organization (WTO) plays a central role in regulating trade and resolving trade disputes. In this context, trade policies and regulations, such as customs duties, non-tariff barriers, and rules of origin, significantly impact the international trade of textile and apparel products. In particular, customs duties have a substantial effect on the international competitiveness of textile and clothing products. Non-tariff barriers, such as quotas, product standards, and certification requirements, play a crucial role in shaping trade dynamics in this sector.

The textile sector, due to factors like high water and energy consumption, use of chemicals, and dyes, is considered by the EU to be the fourth most impactful industry in terms of environmental effects, the third in terms of water consumption, and the fifth in terms of resource use. In this regard, the textile and apparel sector has been identified as a priority sector under the circular economy theme of the European Green Deal.