“Country’s economy has been facing several challenges including end of Multi Fiber Agreement, rising energy prices and Free Trade Agreement with the US .In 2005, due to severe competition from Chinese companies, country’s textile, footwear and leather sectors lost 2 percent while clothing and hosiery output dropped 4 and 0.9 percent respectively .Before the end of MFA, country’s textile and clothing sectors were booming but with the end of quota regime, country has to face harsh competition from countries like India and China .In the first half exports recovered somewhat, footwear sector was the top gainer with 13.7 percent gain to US $191 million .Earlier Morocco was the leading exporter of clothing to EU and Tunisia, now its rank slipped to sixth rank by accounting $1.3 billion with 15.2 percent rise .Production volumes of Chemical industry increased 4.3 percent in 2005 . “Under the Emergence of industrial development program, sectors reported healthy growth as program provides trade vision and allow industries to explore new areas .Source: Fibre2fashion.com .