Flagging textile industry of Portugal seems to have hit the block even as it continues to come to grip with the nation joining the European Union. For the third year in a row, Portugal's textile production declined 7.9 percent in 2005.
A 6.1 percent drop was registered in 2004, while in 2003 a 7.4 percent slide was recorded.
It will have to strengthen its infrastructure, modernise and innovate its textile industry in order to survive the Asian influx of cheap textiles.
Of the 10 major customers for Portuguese exports in the knitwear sector, all are European countries.
Knitwear exports account for some 50 percent of the total exports of textile and clothing products,
Several industries dealing in yarns have been forced to shut down, while those still operating focus on high-end, value added specialty products.
The local market has been affected by the increasing imports and demand for cotton has bottomed out.
Notably, Portugal imports from practically every country in Europe.