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This paper is a contribution to the policy debate on trade and investment integration in the three core Maghreb countries (Algeria, Morocco and Tunisia). An important element of such a debate is a clear understanding of the implications and benefits of further integration with regional, European and global markets, the potential adjustments that will arise and how these can best be mitigated

This chapter looks at the relative competitiveness of the textile and clothing sector in the MENA-4 countries by analyzing trends and drivers of market shares. It also assesses the factors that directly affect cost competitiveness (cost of yarns and fabrics, production costs, market access costs and shipping costs) as well as the factors that indirectly affect competitiveness (lengthy import procedures, efficiency of customs and ports). We examine outcome-based indicators of both international and domestic competitiveness. The former focuses on export performance, trends in market shares, and standard trade tools such as the constant market share analysis (CMS). The latter examines the domestic cost factors underlying performance and benchmarks MENA-4 against their major competitors in world markets.