The Philippine garment and textile industry is undertaking strategic initiatives, projects and partnerships involving key players, manufacturers, and stakeholders. The garment and textile sector was considered a sunrise industry during the 1990s. But the end of the Multi-Fiber Agreement, which granted preferential tariffs to the country’s exports of garments and textiles, saw a decline in the sector’s general performance. As a result, garment and textile enterprises in the Philippines which relied on quotas underwent difficulties leading to closure of factories and downsizing.

The MFA, which prescribed quota allocations in identified textiles and garments that are for export to developed countries from developing countries like the Philippines, India, and Vietnam, was replaced by the Agreement on Textiles and Clothing in 1995.

The Philippine garment and textile industry trade has steadily and continuously declined between 2005 and 2011. Its garment export performance dropped by 39 per cent. At present, 39 per cent of the industry is composed of exporters, and 61 per cent is subcontractors, which include small contractors catering to garment exporters, or backyard businesses. Employment under the textile and garment industry in the country is at 1,37,000 and 4,22,000 respectively.

The Philippine garment and textile industry is gearing up to jumpstart its resurgence and gain back its reputation as a competitive player in the domestic and international markets.