In line with Textile Exchange’s status as an ISEAL Code Compliant member, the principles and criteria for the new Materials Matter Standard were submitted to and approved by the IWG, which is an independent decision-making body.

Textile Exchange explained this body represents a cross section of the textile manufacturing industry, including brands, raw material producers, and civil society organisations.    

The California Department of Resources Recycling and Recovery is tasked with approving a PRO by 1 March 2026. The application deadline for PROs is set for 1 January 2026.

The three associations represent thousands of businesses that could be potential producers under the new law and are currently engaging with these entities to secure effective leadership for the PRO.

The MoU outlines the associations’ commitments to:

• Create an independent PRO led by producers to comply with SB 707
• Foster collaboration across the textile value chain, including manufacturers, brands, retailers, collectors, sorters, recyclers, repair businesses, and other stakeholders
• Prepare the PRO to develop a stewardship programme that fulfils legal requirements and enhances infrastructure for collection, repair, reuse, and recycling.

American Apparel & Footwear Association president and CEO Steve Lamar said: “This partnership signals our industry’s commitment to collaborate in support of a circular transition. By bringing together diverse stakeholders from across our industry supply chain, we are launching an inclusive organisation that is right for the California market and regulatory environment, establishing California as the standard for similar approaches nationwide.”

The National Retail Federation’s chief administrative officer and legal counsel Stephanie Martz added: “Our associations have a shared commitment to ensuring the success of SB 707. Collectively, our members bring significant experience in PRO-building, EPR compliance and implementation to this effort. We look forward to working together to establish an organisation that supports the entire producer community to meet the immediate needs in California and potential future needs if other states adopt similar approaches.”

The process of forming an independent 501(c)(3) PRO has started with an aim to satisfy SB 707’s stipulations and prepare for the application process.

The PRO aims to be operational by early 2026 and is focused initially on registering producers by 1 July of that year.

It will also conduct a statewide needs assessment to determine necessary actions and investments for fulfilling legal obligations.

California Retailers Association president Rachel Michelin explained: “California’s groundbreaking SB 707 positions our state as a national leader in responsible textile management. The California Retailers Association is proud to set the standard for innovation and collaboration in environmental sustainability. We are dedicated to guiding the implementation of this transformative law and to establishing a PRO that unites and empowers the wide array of producers selling textiles in California. Our commitment is to deliver real impact for our communities, our environment, and the future of retail in California.”   

AAFA urges Congress and Trump to renew AGOA before its expiry

In addition to forming the PRO, the AAFA has called on Congress and the Trump administration to renew the African Growth and Opportunity Act (AGOA) before its expiration on 30 September.

The act, enacted in 2000, grants eligible sub-Saharan African countries duty-free access to the US market for more than 1,800 products.

While sharing testimonies by AAFA member companies on the importance of AGOA, AAFA trade and customs policy vice president Beth Hughes acknowledged the interest of Congress and the administration in boosting the use of AGOA.

Specific improvements endorsed by AAFA include:

• Aligning AGOA eligibility assessments with other US government preference programmes by shifting from an annual to a triennial review process
• Introducing a rule that allows for cumulation among all members of the African Union that have ratified the African Continental Free Trade Area (AfCFTA)
• Phasing out obsolete textile visa requirements in favour of enhanced Customs cooperation agreements
• Revising the apparel quota scale
• Amending the criteria for AGOA countries’ graduation.