According to the garment players when the US government ends the quota system imposed on garment imports they will continue operation and will not close shop.

Unfazed by the prospect of free competition the Local industry players belonging to the Foreign Buyers Association of the Philippines assured that the Department of Trade and Industry that the Philippines will remain a favorable environment for their operations. By 2005, garment-exporting countries like the Philippines will no longer benefit from export quotas granted by the United States.

The quota system gives certain garment exporting countries like the Philippines an assured market. FOBAP members, which deal with representatives of major international apparel brands like GAP, Marks and Spencer and JC Penney, acknowledged the country''s highly skilled labor force and reliable production system as key factors that continue to create a viable environment for their operations. The group also said the Philippines enjoys competitive advantage compared with other countries in specialized work like hand smocking for children''s wear and those which involve complex designs. "As long as the Philippines provides these global companies with the right product, at the right price and with the right quality, the Philippines will remain a significant production hub for their operations in Asia, FOBAP said.

Trade and Industry Secretary Manuel A. Roxas II, for his part, said major industry stakeholders remain confident growth will be positive even with the quota phase-out, as proven by the ability of the domestic garment industry to aggressively compete in the international marketplace.