Bringing in more than 40% of Tunisia’s export earnings and providing employment to well over 200,000 people, the textile and clothing sector in Tunisia is a key driving force of the country’s economy. The sector has also attracted a major part of the foreign direct investment (FDI) that has gravitated to Tunisia in the past decade, with leading international brand names such as Benetton, GAP, Levi Strauss and Playtex all establishing production facilities in the country. Of the approximately 2,100 firms active in the clothing and textile industries, more than 75% produce exclusively for the export trade, with total overseas earnings of some $4 billion in 2006. However, the sector is coming under some pressure despite Tunisia’s favorable trade agreements with the EU, by far its biggest market. China’s growing dominance in the international clothing trade since the lifting of quotas and barriers in 2005, especially those of the now
