Guatemala’s booming secondhand clothing economy is sustained almost entirely by imports from the United States. A new report has revealed how this trade supports jobs, fuels local reuse systems, and powers one of Central America’s most dynamic circular textile markets. But proposed changes to export regulations in high-income countries may threaten this critical flow.
- Guatemala imported 131.25 million kg of secondhand clothing in 2023, 6% of it from the US.
- Policy proposals mandating pre-sorting in donor countries could destabilise Guatemala’s low-cost SHC trade and suppress incomes.
- These findings come from a study by Full Cycle Resource Consulting, commissioned by Garson & Shaw. The study is titled Secondhand Clothing Imports from the United States to Guatemala: A Study of Trade, Distribution, and Local Impact.
THE BACKDROP: The study analyses how Guatemala’s secondhand clothing economy functions across formal and informal channels, with emphasis on local sorting, resale, and employment. It outlines business models, pricing systems, and stakeholder roles across the trade chain.
- The report also documents sector responses to proposed donor-country regulations, highlighting concerns over changes that could alter shipment composition or affect operational feasibility.
DATA SNAPSHOT: In 2023, Guatemala imported 131.25 million kg of used clothing under HS Code 6309. The average cost, including insurance and freight, was $1.61 per kg. According to the report, prices for new apparel are typically more than four times higher. Between 2019 and 2023, used clothing import volumes grew by 32.4%.
- SHC volumes rose from 99.05 to 131.25 million kg over five years.
- CIF value of SHC imports increased by 74.5%, from $121.2 million in 2019 to $211.5 million in 2023.
- Retailer Megapaca reported that 91.6% of its SHC imports in 2024 were reused and only 3.27% discarded.
- Import cost for new clothing is typically more than $6.50 per kg, according to comparative figures in the report.
WHAT’S AT STAKE: The report raises concerns that proposed export-side regulations in donor countries—such as mandatory pre-sorting—could limit Guatemala’s ability to import unsorted clothing. This could affect sorting jobs, resale pricing, and access to low-cost garments. Local stakeholders interviewed for the study expressed concern about potential changes to product classification and shipment content.
- Approximately 8% of unsorted used clothing imports are classified as reusable.
- Local resale depends on sorting, selection, and pricing tailored to domestic demand.
- Reclassifying intermediaries as 'producers' under EPR may increase compliance costs for importers.
- Stakeholders cited low-cost access as critical for consumers reliant on resale markets.
