As the second largest foreign exchange earner behind tourism, and the employer of a substantial amount of Tunisia’s workforce, the textile sector is an engine of economic growth for the country, but some minor changes in European legislation have challenged the competitiveness of Tunisian firms, who rely on Europe’s market for the bulk of their exports. The European Union recently abolished import quotas on Chinese textiles, effectively opening the door for low-cost Chinese cotton and silk, while competitors are worried that Asian product might now flood the market, pushing down prices and affecting the volume sold of more expensive product offerings. The end of quotas on Chinese textile exports weighs heavily on the economies of countries around the Mediterranean. “Approximately one third of jobs in the area is likely to be severely affected by this competition”, says Jean-François Limantour, President of Circle Euro-Mediterranean, an association of leaders in textiles and
