Why your recycled clothes could end up in this South American desert

An important development from the financial markets: Why your recycled clothes could end up in this South American desert 19 April 2026 Share Save Add as preferred on Google Jane Chambers Business reporter, Alto Hospicio, northern Chile via Getty Images Some 39,000 tonnes of old clothing is said to be dumped in Chile's Atacama Desert every year If you have ever taken old clothes to a recycling bank, be it in the UK or North America, there is a real chance that the garments ended up illegally dumped in a desert in northern Chile. The South American country is one of the world's biggest importers of used clothing, but items that fail to be resold have for years been simply discarded in big piles out in the barren, bone-dry countryside. In response to a law change, one Chilean company is now moving to tackle the problem.

Chile imports 123,000 tonnes of used clothes every year, according to government estimates. The big driver of this is the free-trade port of Iquique in the north of the country. Businesses in the city and surrounding towns can import, store and sell goods without having to pay customs duties or VAT.

Economic Details

Known as Zofri, which stands for Zona Franca del Iquique (Iquique Free Trade Zone), it was created in 1975 to boost economic and social development in northern Chile. Used clothes became one of the biggest imports. They continue to arrive from the US, Canada, Europe and Asia, baled up in shipping containers.

The clothing is either sold locally, or exported to other countries in Latin America. World Service: Fixing Chile's fashion graveyard Felipe González, the general manager of Zofri, says the 50 or so clothing import firms help the local economy. "It's a sector that gives the most work to local women in the region," he says.

"Around 10% work with textiles. "The women help to put the clothes in different categories according to their quality. It's not highly-skilled labour, which makes it accessible for people without lots of qualifications.

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" The worst quality clothes end up at La Quebradilla, a huge open air market near the town of Alto Hospicio, around half an hour uphill from Iquique, and still within Zofri. There are rows upon rows of tents with piles of clothes laid out on plastic sheets. Stall-holders sell everything from T-shirts, to jeans and dresses.

The prices are cheap, starting from 500 Chilean pesos (54 cents; 42 pence). Tourists and locals flock here, especially at the weekend to find a bargain. Much of the second-hand clothing is sold at an outdoor market Although the clothes create jobs for the local economy, the big issue is what happens to the stock that doesn't sell.

It cannot go to the local council's landfill, because that can only be used for household waste, not commercial imports. So what the traders should be doing is either exporting the clothing, or paying tax to sell it in Chile beyond the free-trade zone, or sending it to an authorised waste company.

Financial markets are tracking the development closely as investors assess the likely impact.