With the phasing out of quotas in 2005, the emergence of low-wage, low-cost countries (e.g. China, India, Bangladesh, and Vietnam), and the shift of US garments firms to
Mexico and nearby Caribbean countries, garments exporters from the Philippines are faced with the difficult challenge of remaining competitive amidst tough conditions. Recent figures indicate that the Philippines is losing out against its rivals because of its inability to compete head-on against low-wage countries, particularly China. However,
some local firms have shown their resilience and their ability to retain their US markets despite stiff competition.
