Portugal’s textile and clothing exports increased about two per cent in September 2019 compared to the same month last year. However, the country’s textile and clothing exports have fallen 0.9 per cent since the beginning of the year. Knitwear exports fell 2.7 per cent. Exports of cotton raw materials, including yarns and fabrics, fell 9.8 per cent. The fall in exports, combined with the 3.1 per cent increase in imports of textiles and clothing, has led to a deterioration of the trade balance of the sector. Even so, the balance remains quite positive, with a coverage rate of 121 per cent.

Turkey, Canada, India, Trinidad and Tobago and Vietnam are Portugal’s main non-EU destinations. As a part of strategic plan for the textile and apparel sector, Portugal has made pointed commitments in sustainability and digitization to keep the country competitive. The increase of the production scale assisted by digital technologies allows flexibility in the Portuguese textile business model. Flexibility is among Portugal’s key competitive advantages. Besides that, the country is one of the worldwide leaders of the private label, in what is an essential differentiator in the textile market. Portugal is bringing its competitive offerings to light at a time when sourcing has been upset over changing trade relations, and companies are looking for new places to manufacture product.