However, the expiry of trade agreements and strong competition from Asian economies has seen production dwindle. In 2004, the Government withdrew the tax free factory status given to exporters to comply with the WTO requirements (World Trade Organisation).
In addition,  BIS Review 86/2010  3  since 2005, the industry suffered the loss of a quota system for garment exports to the United States, which saw the closure of a major garment manufacturer, which generated approximately 50% of total garment production. Moreover, the implementation of the minimum wage regulation effective from July 2009, has increased the cost of producing garments.