The Americas Trade and Investment Act: The Reseller Industry’s Potential to Benefit Billions from Recent Legislation
The Americas Trade and Investment Act: The Reseller Industry’s Potential to Benefit Billions from Recent Legislation
Discover how The Americas Trade and Investment Act could potentially provide billions in funding for businesses championing circularity in the resale industry like yours.
Have you heard about The Americas Trade and Investment Act? It’s a big deal, especially for the resale industry. We’re talking billions in loans and grants that could benefit companies, just like some of our clients’ businesses, who are championing circularity. Specifically, it “is a bipartisan bill that includes over $14 billion in incentives for circularity across apparel, footwear, accessories and home linens,” (Vogue Business).
If you’re unfamiliar with circularity, Vogue Business reports that “a sustainable and circular fashion system is one that starts with resources that don’t deplete or contaminate the planet’s natural resources; uplifts people and treats them with respect and equality; relies on processes and substances that do not poison people or the environment; keeps clothes in use as long as possible, with higher capacity for repair than we have today; turns old clothes into new ones; and eliminates waste…” (Vogue Business).
According to Glossy.co, here’s what it could do if passed:
– lower taxes for businesses involved in recycling, reusing, or reselling apparel by 15%;
– possibly provide billions of dollars in financial assistance via loans/grants to companies to enhance technologies that promote circularity; and
– the tax breaks could be a real game-changer for resellers. Imagine skipping the sales tax on used items. It’s a double win — you save money, and so do your customers, especially since that tax was already handled during the first sale.
Leprix.com also pointed out that if the tax incentives come in the form of reduced corporate taxes, they may not have as significant an impact, but they are still beneficial. They also shared that the Americas Act has the potential to make a real difference in promoting sustainability. By offering customers increased rewards for trading their pre-loved items, it can fuel even greater expansion within the resale sector.
More Details about The Americas Trade & Investment Act
The Americas Trade and Investment Act, also referred to as the Americas Act, was first proposed last year to enhance trade and manufacturing ties among North America, Central America, South America, and the Caribbean. Senators Bill Cassidy and Michael Bennet, along with Representatives Maria Salazar and Adriano Espaillat, formally introduced the complete bill in March of this year. It is said to be “a bid to revive America’s local textile industry and help it to better compete with that of China,” (Vogue Business).
If the Americas Act is approved, it could revolutionize local circular businesses and textile manufacturers. The bill would promote the relocation of manufacturing operations from China to the US, while also working towards cutting ties with forced labor in Xinjiang. Additionally, it aims to close the “de minimis” loophole, which has allowed foreign competitors to avoid duties on shipments under $800.
This significant bill tackles more than just textile matters and includes the broadening of US free trade. While it has been referred to the Senate Finance Committee, turning the Americas Act into law is quite a journey. How the public feels about it will greatly shape its future.
Real Authentication’s Commitment to Staying Informed
The Americas Act could significantly affect the luxury resale and authentication industries. Real Authentication’s mission is to provide individuals, dealers, and global brands with unparalleled confidence and peace of mind by leveraging our deep expertise and years of experience to deliver the most trusted and accurate luxury goods authentication service available. We are committed to staying informed to uphold our high standards of expertise and knowledge in the industry. Real Authentication is following this closely to stay informed and understand how this could impact second hand buyers and sellers in the future.
Stay tuned for further updates to the act!
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Disclaimer: Real Authentication is a 3rd party authentication service and is in no way affiliated with the brands it services.
About Real Authentication: Real Authentication’s mission is to provide individuals, dealers, and global brands with unparalleled confidence and peace of mind by leveraging our deep expertise and years of experience to deliver the most trusted and accurate luxury goods authentication service available. Follow this blog for more industry news, tips to spot counterfeits, and more! You can also connect with us on social media on Facebook, Instagram, TikTok, and Pinterest.
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