The Brazilian Textile and Apparel Industry Association (ABIT) has reported that in July 2006 the local textile and apparel sector had a trade balance deficit of $49 million, the largest reported in the last 72 months. This deficit is said to be the result of a 5% drop in exports and a 70.5% rise in imports compared with the same month of 2005. In the first seven months of 2006, the sector recorded a deficit of $50.8 million compared with a surplus of $255.4 million in the same period of 2005.

In the same period of the current year, imports of textile goods and apparel increased 39.4% in value and 33.4% in volume compared with 2005.