Peru’s textile and garment sector appears to be playing a vital role in the country’s development of the country. Exports have risen an impressive 21.7% in the last six years. In 2002, Peru’s total exports were worth $526 million compared with $1.4 billion in 2007.

The Andean Trade Promotion and Drug Eradication Act (ATPDEA) has contributed to growth, giving Peruvian products the edge over its competitors in US markets. The act absolves various garments from a 16% ad-valorem duty.

According to reports, approximately 7.5 million people in Peru are employed either directly or indirectly by the textile and garment industry. The US is one of the top export destinations for Peruvian apparel. In 2007, more than 58% of total export earnings came from the US and in the first six months of 2008, shipments to the US have totalled $482 million.